Financial Ignorance Is Making Americans Sick
What we don’t know about money leads to chronic illness.
Tracking current financial literacy trends in the U.S.
What we don’t know about money leads to chronic illness.
Only a third of parents think they can effectively teach their kids about money.
We put off making them because we don’t understand them.
It turns out high income isn’t the best predictor of how people save.
It doesn’t work because it’s not year.
Students are taught the basics and still feel unprepared to handle finances as adults.
Financial ignorance stresses us out, but putting the problem on the calendar hasn’t helped much.
And what you can do to outsmart them. (Hint: Ignore their rewards.)
Lack of financial education can cost Americans $30,000 over our lifetimes, yet most high schools still don’t require students to learn how to manage money.
A new poll reveals how parents think about money. It involves Star Wars.
Whether it’s from divorce or death, separation from a partner is expensive, but couples don’t talk about it and aren’t prepared for the financial blows.
A new Debt.com poll reveals: With big mistakes come big lessons.
Some states are pretty good at teaching financial literacy to young people. Unfortunately, not enough of them are educating young people on basic money management.
We’re still not teaching our children what they need to know about money.
Apparently, it’s the same place where we make it.
If Donald Trump wants an easy win, promote financial literacy. It really does make a difference, according to the CFPB.
Almost half of all lesbian, gay, bisexual, transgender and queer middle-income earners suffer from financial insecurity.
They’re also more likely to want to learn about credit.
They’re worried about money more than their jobs and relationships
The latest Debt.com scholarship winner loves profit and nonprofits.
At least they know who to ask for help.
The number of Americans without an emergency fund is at a six-year low.
Our favorite answer: Marrying the wrong person.
They remind the My Family On a Budget writer of his money mistakes.
Even though parents want to have a conversation, bad habits are passed down through generations
Generations retiring in a couple decades may not even get a retirement because of a $400 trillion retirement savings gap.
States that voted for Trump have fewer credit cards, lower balances, and a worse understanding of money.
The test on basic money knowledge has been administered twice — and Americans failed it both times
Women are not only better at saving, but also at investing. However, women don’t know they are better than men at money management.
Study finds that women are more likely to financially prepare for the future
Are kids today financially smarter than previous generations?
Millennials don’t know what basic money terms are, and that’s a big problem.
Men are more likely to ask for financial advice than women. What’s holding women back from talking about money?
You probably don’t know enough about financial literacy, and your parents are to blame for it.
It’s just another manufactured holiday. It doesn’t matter. Right?
A quarter of Americans expecting a tax return will spend their money before they get it.
We’ve got a big list of ways to save on everything — and we do mean everything.
Aging Americans want to leave an inheritance, but don’t want to talk about it.
This month, Debt.com answers all your questions – in under a minute.
Most families believe having money chats is very important but neither parents nor their adult children are actually talking about finances.
One woman’s personal quest to get right in her head and wallet.
If Congress needs help helping people, it should look to these state legislators.
Most Americans aren’t financially prepared to handle an emergency expense. Cars and sickness are the worst.
Most families have strong misconceptions about the value of an estate and this hurts us later in life when our loved ones pass away.
Americans prefer financial stability over looks and fitness in romantic partners.
If you do, they’ll grow up better human beings, even if they never become an entrepreneur.
Two-thirds of young adults have an actual fear of debt, even though they plan their spending on a constant basis.
Money has a huge impact on our overall well-being in life. To reduce stress and be happier, we need money or a better attitude when it comes to money.
No matter what our wealth level, we seem to waste money. There are some that see money as burning a hole in their pocket and they must spend it. Still others have proven it’s possible to save considerable money even when not making a millionaire’s salary. To some, wasting money might be buying a coffee […]
No state in the union has an A in financial literacy
If you’re financially literate, it means that you understand a wide range of key consumer finance topics. You:
You don’t have to be a financial expert to be financially literate; you just need to know enough that you can manage your money day to day without causing problems. When it comes to personal finance, knowledge really is power. The more you know, the more likely you are to be successful.
According to an 2017 Mintel study published through Experian, most Americans aren’t confident about their financial knowledge. Only 19% of Americans would give themselves an “A” for financial literacy. The rest of us fully admit that when it comes to solid money management, we know that we don’t know.
The same study found 21% of Americans are “not at all confident” that they can achieve their retirement goals. That makes sense, because if you don’t know how to strategically manage debt and invest wisely, you can save effectively.
The National Financial Educators Council offers a National Financial Capability Test that measures your financial IQ. They created the test for 15-18 year-olds to see whether or not young adults are prepared for financial independence. Last year, that age group scored an average grade of 60.
However, the test is also open online to adults of all ages. They don’t score much better at 63.17, on average. In fact, only 48% of the over 17,200 people that have taken the test received a passing grade.
If you have some time, we recommend following the link above to take the test. It can be a good way to figure out if and where you lack key financial knowledge. Then you can come back here to start studying up in our Education Center.
WalletHub conducted a WalletLiteacy Survey this year to see which states had the highest and lowest levels of financial literacy in the U.S. The scores measured everything from Financial Literacy Test grades for high school students to the number of adults with savings.
New Hampshire scored the highest at 72.26, while Louisiana scored the lowest at 57.10. Still, it’s not saying much when the highest score is barely a “C”; it just goes to show how far we all have to go before we can really claim to have a high literacy rate.
If you think grade-school educators are any more engaged with personal finance education now than they were when you went to school, think again. According to a National Association of Federally-Insured Credit Unions study, almost 7 in 10 Millennials admit they haven’t received any education.
Oddly, the same study revealed that 3 out of 5 Millennials reported they were “extremely” or “very” knowledgeable about financial products. You may be able to chock that up to the inexperience of youth. Unlike the adults polled in #1, Millennials haven’t had time to make enough mistakes to realize they don’t know enough.
Without classroom courses to learn, most people learn by encountering financial products in their daily lives. However, given that 25 times more money gets spent on marketing than on basic education, most people only encounter financial products when someone is trying to “sell” them a product. That’s according to a CFPB study of spending by financial institutions.
That’s not exactly a recipe for financial success. Without a basic knowledge of financial products outside of an up-sell marketing message, people don’t know what to use and what to avoid. For example, let’s say you overspend on credit and end up $10,000 in debt. Your mailbox is likely to be filled with offers for debt consolidation loans, balance transfer credit cards and settlement offers. How do you know which option to use to actually get out of debt successfully?
If you just read that question and don’t know how to answer it, start here. However, it shows just how dangerous a marketing culture without education can be.
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