Why Is It Important To Be Financially Literate?
Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others. Understanding basic money management skills such as living within a budget and handling credit and debt is very important, as having little or no knowledge regarding financial management can affect them in many different aspects of their life.
Snapshot of U.S. Financial Environment*
- More than 77 Million Americans do not pay all of their bills on time
- 93% of Americans believe all high school students should be required to take a financial education class (However, 59% of those students are not being offered classes)
- 56% of young adults admit that they don’t have a budget
- 39% of young adults carry credit card debt from month-to-month
- 69% of parents admit to feeling less prepared to give their teenager guidance about investing than they do having the ‘sex talk’ with them
- 3 out of every 4 Americans say they aren’t saving enough
- 40% of Americans will never gain a net worth in excess of $10,000
*Data via National Financial Educators Council
How Does The Money F/X Help Overcome These Challenges?
Research shows that Americans are lacking the financial skills needed to plan for their future. The Money F/X helps clients overcome these financial challenges by promoting financial literacy in easy-to-understand, relatable steps.