Boomerbaggage

Facebook Twitter RSS

Improve Your Financial Decision- Making
While Planning for Life Events

  • Home
  • Financial Planning
  • Insurance
  • Investments
  • Medicare
  • Social Security
  • Wills & Estates
  • Continuing Education
  • Fitness
  • Giving Back
  • Grandparents
  • Self-Employment
  • Travel

Financial Literacy – Are We Making Progress?

Posted by Rich Grant on April 26, 2022 in Continuing Education

Financial Literacy

Table of Contents

  • Financial Literacy Update
  • Financial Literacy Grows Over a Lifetime
  • Is Education the Answer?
  • Call to Action

Financial Literacy Update

It is coming to the close of April — the end of Financial Literacy month.  Are we making progress?

In 2016, I wrote an e-book titled Reduce Your Income Inequality Through Financial Literacy. The e-book describes what financial literacy is, why it is important and how we know people are not financially literate. It also describes the cost of financial illiteracy. What is clear from the studies referred to in the e-book is that people are unable to answer some basic finance questions; but over time, as the respondents experience life, the percentage of correct answers to these questions improves.

In 2018, Financial Industry Regulatory Authority (FINRA) issued a five-question test which measured consumers’ knowledge about interest, compounding, inflation, diversification, and bond prices. Only 34% of the participants got all 5 questions correct. These results were worse than in the prior study performed 5 years earlier.

The 5 questions were:

Can you answer these questions correctly? The answers are in the e-book.

Financial Literacy Grows Over a Lifetime

The earlier we start educating ourselves in personal finance, the better off we are – as Financial Literacy Grows Over a Lifetime.

Since we improve from our life’s experience, this article lays out the stages of life and what our focus should be from Children and Adolescence, to Young Adults, to Midlife and Mature Adults, to Retirement.

Is Education the Answer?

One would think the answer to improving financial literacy in the United States is education. However, there are only 23 States that require a personal finance course for students and much of the State’s course work is not standalone personal finance but integrated into another class.

We are however, trending in the right direction. 47 States now have some sort of personal finance included in their education standards.

Call to Action

I believe our progress toward financial literacy is much too slow. Whether it be the need for education in schools or parents taking a larger role – we need to do better!

If you are financially literate, continue to grow and teach others.

If you are not financially literate, take action. Take a course, read books, use checklists. Although our education system has not yet put the right resources in place for our young people, there are plenty of tools online to help us improve. As an added incentive to increase your financial skills remember Financial Literacy Will Make Your Child Happier!

 

 

 

 

Boomerbaggage Resources

JOIN OUR BOOMERBAGGAGE COMMUNITY FOR TIPS ON HOW TO IMPROVE YOUR FINANCIAL DECISION-MAKING WHILE PLANNING FOR LIFE EVENTS

Join the Boomerbaggage Community and you will also get a freebie:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

JOIN OUR BOOMERBAGGAGE COMMUNITY FOR TIPS ON HOW TO IMPROVE YOUR FINANCIAL DECISION-MAKING WHILE PLANNING FOR LIFE EVENTS

Join the Boomerbaggage Community and you will also get a freebie:

Learn more
Learn more

Do you dream of being financially secure?

Learn More

Recent Continuing Education Articles

  • Financial Literacy – Are We Making Progress?

  • Does “Work and Life” Make You Happy? If So, Don’t Apologize or Stop “Working”, But Keep Learning.

  • Learn a New Skill to Meet Your Personal Challenge

  • Boomers Head Back to School

  • Learn a New Skill: Top 5 Reasons for Boomers

  • How Do Baby Boomers Use Social Media — and How Could You Be Using Them to Your Benefit?

  • Continuing Education: Which One Is Right For You?

Socialtunities
TelikinTouch
  • About Boomerbaggage
  • Our Boomerbaggage Team
  • Disclaimer | Terms of Use | Privacy Policy
  • Feedback
  • Sitemap