Financial Literacy
The Challenge
The Statistics are staggering, Nearly half of Americans don’t expect to have enough money to retire comfortably.
- 78% of Americans live paycheck to paycheck.
- According to Forbes.com Student loan debt is $1.5 trillion for more than 44 million borrowers.
- Credit card debt is up to a record $1.04 Trillion according to USA Today
- 21% of Americans aren’t setting aside any money for short-term or long-term goals. – According to CNBC.com
- Nearly half of Americans don’t expect to have enough money to retire comfortably.
- Credit card debt has reached its highest point ever.
- Forty percent of Americans can’t afford a $400 emergency expense.
These feelings of heaviness come over us, too much debt, too little savings, job insecurity. These factors coupled with bad money management practices, credit card spending, unexpected emergencies often lead to major problems, financial stress, and feelings of inadequacy
Financial Literacy
Money management isn’t taught in schools, but it should be. The facts remain that the average American will earn over $1 million dollars in their lifetime, but will die in financial ruins. Financial Literacy is important because, Without it, our financial decisions and the actions we take can have dire consequences:
The answer to the aforementioned challenges is Financial Literacy. Making money is important, but knowing what to do with the money you make is of utmost importance. Understanding financial concepts and applying the skills to your personal situation empowers you to effectively manage your money, and make smart financial decisions, by equipping us with the knowledge and skills we need to reach our financial goals and financial objectives, which can help include:
- Budgeting
- Saving for retirement.
- Creating and sticking to a balanced budget.
- Purchasing a home.
- Selecting insurance.
- Reducing expenses.
- Investing.
- Buying a car.
- Saving for college.
- Managing debt.
- Using credit cards.
- Will and Trust
- Estate Planning
Impossible is not a fact it is an opinion
Benefits of Financial Literacy
- Plan for the future.
- Meet your financial goals.
- Helps you through times of financial hardship.
- Leverage the most out of your income.
- Go from ‘surviving’ to ‘thriving.’
- Improve many areas of life — relationships, careers, hobbies, and home life.
- Provides life skills for young people to use as adults.
Resources
• Total Money Makeover by Dave Ramsey
• Rich Dad Poor Dad: What the Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
• “Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By” by Cary Siegal.
• Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry
• The Money Book for the Young, Fabulous & Broke by Suze Orman
• The 800 Blueprint: how to fix your credit & play the game like the rich by Anthony Daniels
• Money Talks: The Ultimate Couple’s Guide to Communicating About Money by Talaat and Tai McNeely
WORK! Until Expensive Becomes Cheap
Websites
- Investopedia is a good starting place for those who find themselves dumbfounded by the terms used in the financial world.
- Money.com Personal finance news and advice from Money.com. Saving, spending, investing, retirement, careers, real estate, freebies, deals, tech, and healthcare.
- Better Money Habits: A collaboration between Bank of America and Khan Academy, this site includes animated videos to cover financial literacy basics as well as more in-depth topics.
- Money Smart: The FDIC’s program provides free tools for people of all ages to increase their financial literacy. Resources include lesson plans, videos, podcasts, and games.
Articles From Statistics Above
The Majority of Americans Live Paycheck to Paycheck
Student Loan debt Statistics 2019
The No 1 Reason Why Americans struggle to Save Money
Almost Half of Americans Dont Expect To Have Enough Money to Retire Comfortably
Credit Card Debt Hits Record High
Federal Reserve Report on the Economic Well-Being of U.S. Households
