Given the amount of information available from numerous sources you might believe financial literacy is through the moon. Unfortunately
it is not the norm. For example, a large number of people did not know what bankruptcy was.
Recent surveys conducted by two of today’s largest financial product based organizations paint a bleak picture. Financial literacy is regressing
rather than progressing.
The surveyors were shocked to learn the groups needing the information the most are the groups who don’t search for it. It seems those who are financially ignorant like it that way. And they did not say that by the way.
Surveyors learned the folks who are already financially literate belong to the group that keeps searching to learn more. It would be ironic if it wasn’t so sad.
The Financial Literacy surveys were conducted around eight main areas:
- Information Sources
It would be hard to disagree that these aren’t important areas. After all, they stare us in the face every day of our existence.
I cannot imagine someone not knowing how to read their paycheck. Some folks had no idea what determines their take home pay. Incomprehensible to say the least.
If this important financial document isn’t important to a person I can’t believe any other financial document would be important.
All of us consume everyday or we wouldn’t be alive. But, not being able to articulate where you spend your money, and on what, seems out of place. Especially in today’s society. But the surveys say otherwise.
An easy concept to be sure. Yet some respondents had no idea how to get the biggest bang for their buck. In other words, they couldn’t tell how they
would maximize their savings dollars.
This is an area requiring more study than a subject like saving. So, may be it is understandable that respondents did not know how to evaluate particular investments. Or, understand the risk associated with each type of investment. However, those are not poor excuses for foregoing a cursory attempt at financial literacy.
An extremely easy concept to understand. Or so you would think. Above all respondents couldn’t express the relationship between loan features and repayments.
By the way budgeting was out of the question when it came to debt for these respondents.
I realize risk begins most people’s days. It is called waking up to an uncertain world no matter how many times we wake up.
When it comes to financial literacy people couldn’t explain the degree of risk associated with an action. Or the degree of risk they were willing to accept with regard to a particular investment.
Types of coverage is all a person really needs to know about insurance. Subsequently, no one has to dive into the inner bowels of how the insurance industry works.
However, it would be extremely beneficial to understand how your policy works regarding your particular coverage. So, what you are paying for and why
would be a good start.
Financial Literacy Information Sources
We live in the age of information. For example even the homeless have access to information. They simply use the library and government agencies.
Finding appropriate sources and asking for advice isn’t a giant pain in the posterior any more. To clarify it is open source to borrow Internet language.
And, in most cases, it is absolutely and completely without cost. Therefore, a person does not have to take one dime out of their pocket.
Financial literacy, like understanding financial definitions, equates to financial well being. So if you have it, your life is better all around. Subsequently, if you don’t have it, seek it out. You’ll make a better life for yourself.
Senior Outreach Ministries achieves it’s objectives with the capital we’ve either earned or received from donors. The Proud 2 B A Senior Ribbon for example. Donate $5, get a ribbon and help us help a hungry Senior Citizen in need. All proceeds remain in the Ministries to be used per our mission statement. We are a volunteer church. No one receives a salary or wage. Please help us help less fortunate hungry Seniors. We never have and never will ask the government for grants, funds or hand outs. Thank You in advance.