Financial Literacy

What Is ‘Financial Literacy,’ And Why Does It Matter?

Americans aren’t saving enough for retirement. That’s a trite statement. Precisely how great the shortfall is, is in dispute, of course, as is the question of what remedies, if any, should be undertaken. But what’s the reason for this savings shortfall?  Discarding specifics like “no more traditional pension plans,” there are three potential reasons, each

Where’s the ROI on Financial Literacy Programs?

It’s doubtful many banking professionals view financial education programs as a serious marketing tool. Such initiatives often feel like little more than an obligatory community service, and thus receive perfunctory attention from the senior leadership team. And that’s typically where it ends. However, data suggests that financial literacy is much more than just a feel-good

Video: Former U.S. Education Secretary on How Financial Literacy Solves Poverty

Former U.S. Education Secretary Arne Duncan said poverty can't be eliminated without proper financial literacy. "If we're serious about breaking cycles of poverty, if young people get a good education, get a good job and still can't manage their money and they're spending more than they are bringing in, we're not actually breaking those cycles of

Taking aim at employee stress, employers expand financial education benefits

From credit card debt to saving for retirement and paying for children’s education expenses, stress over finances is taking a major toll on employees — and it’s also taking a major toll on the workplace as a result. That’s among the takeaways from new research from the International Foundation of Employee Benefit Plans, which found

Older Americans Can’t Pass a Retirement Financial Literacy Quiz

Even if you plan well for retirement and have a reasonable amount saved, you can still end up in financial trouble during your golden years. There are lots of money traps that even reasonably prepared seniors can fall into if they're not well-versed in the unique details of retirement-stage personal finance -- and the new RICP Retirement Income

How financial literacy can assist offender rehabilitation

A few weeks ago I received a prepaid debit card in the mail. This was different from the usual credit card offers I receive almost daily. This was not a credit card, but a card the company wanted me to direct deposit my paycheck to. As I know it is common for offenders to use

Financial literacy, not information simplicity, fuels good decision making

This is one time where KISS (keep it simple, stupid) isn’t the answer, according to a new study from Texas Tech University. The study used a hypothetical employer-sponsored 401(k) plan and looked at how the presentation of financial planning information impacts retirement-savings behavior. Researchers did not expect to find that simplifying the information did not increase plan

Financial Literacy Is The Greatest Gift Of All

It’s been a generation since Whitney Houston's "Greatest Love of All" was burning up the charts,  but the lyrics have resonated for me as a parent and equally as a financial advisor over the years. "I believe the children are our future/ Teach them well and let them lead the way." As Mother’s Day and

Just Out of College? Now Is the Time to Take Stock of Your Finances

After the tassels have been turned and the mortarboards thrown into the air, many college graduates are about to be on their own for the first time. Their first step, financial experts recommend, should be taking stock of their finances. “Grab hold of your financial life,” said Jill Schlesinger, a certified financial planner and “ambassador”

In an age of responsible capitalism, financial education must be our shared purpose

When my daughter was 10 she asked me if I was a ‘saver or a spender’; I asked her to guess, and she said “a saver”. I asked her the same question back; she replied that she was a spender, but that her sister was a saver. Research by the University of Michigan recently showed that

Americans Overestimate Their Financial Literacy

A new study reveals that while Americans are generally overconfident in their financial knowledge, only a few could score a top grade on a financial quiz. The “Financial Literacy: Prosperity Begins with Knowledge” study from Raddon, a provider of innovative research, also found that the vast majority have never attended a financial education program, although

Is Your State Financially Savvy?

Did you know that some states are financially savvier than others?  And that's not just in terms of state budgeting practices. Some have residents who score much higher than their neighbors in terms of financial literacy and stability, according to a recent survey conducted by WalletHub.  WalletHub used 15 different metrics to measure the financial skills

8 great financial lessons I learned from my father

My father emigrated from Taiwan in the 1960s with only $17 to his name and the clothes on his back. Though he was poor in a material and financial sense, he never considered himself poor. His mantra was that financial wealth alone does not represent one's "true wealth." My dad taught me not to define

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®,