Financial Literacy

Financial literacy test finds the world is not ready for retirement

Most online quizzes are relatively mindless, promising to reveal what vegetable, sandwich or rock band best represents your personality. That was not the case for a short online test given to more than 14,000 people in 15 countries this year. It revealed just how unprepared a good chunk of the world is for retirement. The

Taking the Battle for Financial Literacy to Where the Eyeballs Are

How to make a brief video that can meaningfully boost Americans’ financial literacy: Present a focused message, but don’t just discuss good ideas — show how to take specific action. Inform, but don’t be too clever or preachy. And beware: misleading online advertising could dilute your message. That’s the gist of a paper forthcoming in Management Science by UCLA

Financial apps have their good sides and bad sides

Last summer, my youngest daughter and her friends were chatting about how they had all decided to save money using various financial apps, each designed to painlessly keep the change on purchases and to put the proceeds into an investment account. I recently had the same group of young women back in my home, and

Video: Financial challenges for older women

Older women face some tough financial inequalities, that paint a grim future as they continue to age. “The lower wages faced by so many women magnify over time. So, if you are earning lower wages in your 20s and 30s, imagine the lower wages you are still going to be earning in your 40s and

5 Things The Best 401(k)s Do To Boost Retirement Savings

Like most things in financial life, there's an art to a great 401(k). Most are average or poor. But a handful stand out. The companies doing right by their employees have a few things in common. The first guiding principle is to help employees save as much as possible. The second is to make this

What is Money Silence and Why Should You Care?

Some topics are just not discussed in polite company. Sex, politics, religion, and money are usually deemed inappropriate subjects at the office water cooler or around the dinner table. Though these conversational taboos have their place, silence isn’t always golden. According to Kathleen Burns Kingsbury, founder of KBK Wealth Connection and author of Breaking Money Silence®,

Why we hate making financial decisions – and what to do about it

The advice to use your head, not your heart, might not be helpful after all. We all make tough decisions, but choices relating to money send many of us running in the other direction. Unfortunately, ample evidence indicates that aversion toward financial decisions leads many of us to put off things like funding a 401(k), saving at

Gains in Financial Inclusion, Gains for a Sustainable World

Mary Banda in Zambia runs a small restaurant in one of Lusaka’s oldest markets. Before she learned that financial services could make the way she did business easier, her profits were low. But today, her profits have increased, both because she banks her money and because she uses mobile money transfer services. Using financial services has

Women Should Plan for 100-Year Life

Women’s growing career and financial power doesn’t necessarily translate to long-term financial wellness. That’s the takeaway from a new Merrill Lynch/Age Wave study released Thursday, April 19, “Women & Financial Wellness: Beyond the Bottom Line”. “Women are driving big changes in the labor force, in their communities and workplaces, and in their homes,” said Sheri Bronstein,

5 Scary Facts About Financial Literacy – and How to Avoid Becoming a Statistic

If you're reading this story, then you're already ahead of the curve. That's because adults and teenagers in the U.S. – and worldwide – are enormously ignorant when it comes to financial literacy. They struggle to understand basic concepts such as how interest works, why inflation matters and how to evaluate investment risks. That ignorance is

Why you need to be the CFO of your personal life

Take a look inside any successful, growing company and you’ll see that the business owner or CEO has spent countless hours on thoughtful, detailed planning to get there. As part of the overall business plan, they’ve also put people and systems in place to sufficiently manage the company’s financial health. Without knowing the assets, fixed

What Is Financial Literacy and How Can You Improve Yours?

From subsisting on a ramen noodle diet to working multiple jobs while in school, college students are notoriously cash-strapped. But while you may have to scrimp to make ends meet now, you may have a brighter financial future, and sooner than you think -- particularly if you start adopting smart financial behaviors during your college

Stop Teaching, Start Coaching

While some advisors see client financial education as a primary service, others are not convinced that the practice has real value. Decades of academic research only serves to intensify the debate because studies can be found to both defend[1] and refute[2] the effectiveness of financial education. How do we make sense of all these (often

Tax time: 5 smart and dumb things to do with your refund

For many people, tax season can feel a lot like Christmas morning. With more than 70% of U.S. taxpayers expecting to receive some sort of refund this year, according to IRS, that means Americans have essentially three choices to make with the extra cash on hand: save it, spend it or pay down debt. Chris Whitlow, CEO of Edukate, a workplace

Improve your financial literacy with these library books

The ability to manage debt and make good financial decisions can have a lasting impact on our lives, and yet many Americans struggle with financial literacy. Each stage of life, from starting a new career, to beginning life with a new baby or contemplating retirement, can take a different financial toll. For that reason, financial

Employees might lack more financial skills than plan sponsors suspect

Financial wellness programs and efforts to educate employees on retirement plan ins and outs notwithstanding, employers may not be giving employees what they need to navigate the intricacies of finance. What they really need are skills they should have gotten years ago. That’s the conclusion of “The financial skills of adults across the world,” a

8 Small Financial Mistakes That Lead to a Mountain of Debt in Your 30s

No one wants to deal with money problems when they get older. But, unfortunately, many high schools and colleges don’t teach teens and 20-somethings how to manage their finances properly. In fact, the average person under 35 has around $5,800 in credit card debt alone, according to ValuePenguin. That’s on top of student loan debt, living

4 Stats That Reveal How Badly America Is Failing At Financial Literacy

Do you work hard every single day but still don’t feel like your finances reflect your grind? You’re not alone. Most of us invest a significant amount of time, money and effort on getting a job but we pay very little attention to managing the money we make once we have that job. And having

Money 101 For Millennials: Seven Tips For Improving Your Financial Literacy

When young adults become fully responsible for their personal finances for the first time, they're often in for a rude awakening. Financial literacy is rarely taught in school, and if their families didn't discuss credit scores, taxes and interest rates as they were growing up, these newly-minted members of the "real world" can easily get

Five Ways You Can Become Less Financially Vulnerable

If I asked you, “On a scale of 1-10 where 1 = “not at all financially vulnerable” and 10 = “very financially vulnerable,” how financially vulnerable do you consider yourself to be?” how would you answer? Public policy makers(link is external)define a financially vulnerable consumer as “someone who, due to their personal circumstances, is especially susceptible to detriment.”