David Lerner Associates: April is Financial Literacy Month
The best investment you could make is financial education. It’s an investment in your own financial future and the future of your family.
This is no longer a catchphrase anymore. The stats speak for themselves. According to the Financial Educators Council, three years after implementing a financial education mandate in Georgia, Idaho, and Texas, all three states saw increased credit scores and lower delinquency rates on credit accounts.
As with any subject, financial decision making is hugely affected by the ability to understand and apply basic principles, or reversely, the lack of knowledge about it. By learning high quality, non-complex information and facilitating the best use of available resources in real-life situations, financial decision making is positively affected, as reported by the National Financial Capability Strategy.
It stands to reason then, that by investing time and energy into the process of learning and increasing one’s financial literacy, only good things can come of it.
“Financial illiteracy is not an issue unique to any one population. It affects everyone -- men and women, young and old, across all racial and socioeconomic lines. No longer can we stand by and ignore this problem. The economic future of the United States depends on it.”
President’s Advisory Council on Financial Literacy
To give you a picture of exactly why this statement rings true, here are some alarming numbers:
- In 2012, 56% of people in the U.S. reported having no ‘rainy day funds.’
- More than half of millennials (about 54 %) say debt is their “biggest financial concern.” 39% of millennials worry about their financial future “at least once a week.”
- There’s a $6.6 trillion gap between the pensions and retirement savings of U.S. households and what they should have to maintain their living standards in retirement, and the gap is growing.
- 41% of baby boomers expect their standard of living to decrease in retirement.
- Only 14% of baby boomers have a written retirement strategy.
The list goes on, but that gives you some idea of how serious it is and how important it is for anyone to raise their financial IQ.
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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com