Recently a survey showed that 2/3 of Americans can’t pass a basic financial literacy test. With personal finance being most critical in EVERYONE’S life, that number is astonishing. Before discussing solutions, let’s first take a look at what is driving the low financial literacy rate.
Personal Finance is such a Taboo Topic
For many personal finance is a taboo subject and is just not discussed, probably a result of past financial mistakes, where people are on their financial journey or lack of financial knowledge. We ALL are impacted by personal finance so why not discuss??? Personally I take every opportunity to discuss personal finance with as many people as possible. Did I always? Of course not, but what I learned is that EVERYONE is going through or has gone through something and we can all learn from each other.
Lack of Financial Knowledge
Financial knowledge for most is learned (through trial and error) and not taught, so sometimes it takes many years to get the knowledge necessary to make progress with finances. Because personal finance is such a taboo subject people tend to let things happen instead of getting help.
Focus is on Immediate Satisfaction instead of Financial Security
So many want IMMEDIATE satisfaction and have moved away from considering the choices made today and the impact to their future financial security.
Not Taught to Manage Finances
People just aren’t taught to manage finances early in life. As I mentioned earlier it is usually learned later in life through trial and error, and in some cases too late to be impactful.
Understanding what is driving the low financial literacy rate is necessary for implementing solutions. It’s going to take the effort of MANY to increase the financial literacy rate but it will be worth it. I truly believe financial literacy starts at home, and I am working to help families insure the financial literacy of ALL family members. Through Money Choices Today, I am working to increase the financial literacy rate by providing educational resources through individual & group coaching, workshops, courses, speaking engagements, blog posts and personal finance challenges in a judgement free zone.
If you are looking for any financial literacy resources to get started, please email info@moneychoicestoday.com.