Raising Financial Literacy

Raising Financial Literacy

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2017-01-19

While one might be forgiven for thinking that a lack of financial literacy is exclusively a problem with young people and students, the National Foundation for Credit Counseling’s Financial Literacy Survey revealed that 41% of adults gave themselves a grade of C, D, or F regarding their knowledge of personal finance. 

This is an alarming statistic. That’s almost half the adult population who are poorly educated when it comes to managing money. 

And it’s not just how to balance your checkbook or set a monthly budget. In a Retirement Income Literacy Survey conducted for The American College of Financial Services last year, 80% of the respondents received scores of 60 or lower on financial questions about retirement. Just 20% received what amounted to a passing grade. 

Experts are saying that the problem may be with the timing of education. Where previously the bulk of financial learning happened at the high school level, the school of thought now is that this is either too early or lacks enough practical real world application for the education to stick.

Which makes sense. Most high school graduates are thinking about what parties they’re going to on their summer break or what college they’re about to attend. Why on earth would they have any use for mortgage information, or understanding their employer matched 401k, or what the best way to set up a retirement savings fund would be? 

The key is making it an ongoing educational process, with an ever-increasing capacity for financial concepts and raising one’s financial IQ. 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

 

Tags: David Lerner Associates, Financial Literacy, Personal Finance, Budgeting, Retirement Planning,

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About

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

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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