Financial Literacy

Smart data can improve behavior, outcomes for retirement savers

We have all heard of big data, which the defined contribution industry has not leveraged sufficiently and has gotten a black eye for it. At a recent industry conference, I heard Tina Wilson, senior vice president at MassMutual, mention a new concept that may have far reaching implications for the 401(k) industry: smart data. Today,

Better business: Calls to improve financial literacy

The industry might be working hard with the regulator to make financial services accessible to more people, but there is still a knowledge gap, which is putting adults at a disadvantage when it comes to understanding about how to save or invest. Tom McPhail, Hargeaves Lansdown head of policy, said the government needs to do

Financial literacy should begin with a paycheck

Does your new employee have a savings account? Does he or she know how to budget a paycheck? These are important questions since the whole reason companies offer a salary and benefits is to make employees feel compensated and valued. If employees don't know how to manage money or don't understand the benefits on offer,

Here’s why businesses should invest in their employees’ financial literacy

Speak to any entrepreneur, and they will tell you that investing in their team’s development is vital to the growth of their business. There is a war for top talent in Canada, and this is one way to attract them. In my experience, the most talented people choose the companies at which they believe they’ll

4 Tips for Promoting Financial Literacy within Nonprofit Organizations

When we think of nonprofit organizations, many of us first envision local or national charities. But don’t let the name fool you. Despite having “nonprofit” in the title, these organizations are just as centered around money as any for-profit business. The primary difference is what they do with their earnings. Instead of paying out profits to shareholders,

Laden With Student Debt

At year-end 2016, Americans held a record $1.3 trillion in outstanding federal student loans, according to a report from the Federal Reserve Bank of New York. These loans now represent the biggest chunk of consumer debt in the country outside of mortgages, and they carry the highest delinquency rate. Additionally, it seems that the skyrocketing

How Financially Literate Are You Really? Let’s Find Out – WSJ

There’s a financial-literacy crisis in the U.S. And it is probably even worse than it seems. Study after study shows how poorly Americans understand money and investing. Consider this common question posed by surveys: “Suppose you had $100 in a savings account and the interest rate was 2% a year. After five years, how much

Want More Productive Employees? Provide Financial Literacy Education

Could the key to improving employee productivity lie in providing the right kind of financial literacy education within your workplace? Studies and recent human resources trends suggest there is a compelling business case for providing financial literacy programs to your employees. However, today’s employees also require a different kind of financial literacy education. One that

Money Makes the World Go ‘Round: Are You Ready?

An October 5, 2017 headline from the business section of the New York Times gave Ajeya Shiva reason to celebrate: Payday Lending Faces Tough New Restrictions By Consumer Agency. Shiva, a senior at the Bronx High School of Science in New York City, is really interested in the industry that provides payday loans, which are small loans that allow

The Single Biggest Impediment to 401k Financial Success?

Have you ever thought about the single, biggest obstacle to the success of plan participants in meeting their financial and retirement goals? The best strategies take advantage of opportunities while overcoming obstacles.  You can have the best-laid retirement plan, but employees won’t be able to fully utilize it and become engaged unless you address the

Will FinTech Spur More Millennials to Invest

Today’s morose Millennials, criticised for potentially killing the NFL and the napkin industry, are tomorrow’s financiers. Worse than killing the NFL and napkin industry, Millennials broadly feel indifferent towards finance. This sets a poor precedent for the future. However, there is light in the darkness as FinTech offers the opportunity for today’s youth, across the world, to get

How The Financial Landscape Disadvantaged Millennials

Before knowing if we’d grow up to be journalists or engineers, we all learned to write essays and add fractions. We would for certain grow up to pay taxes and build credit, yet few learned to read financial forms and phrases. Now as adults, 57% of us struggle with financial literacy—and it’s not our fault. We grew

2017-09-30T18:31:19+00:00 Tags: , |

Chart: Are Today’s Students Prepared to Make Financial Decisions?

In the “old days”, personal finance seemed so much more straightforward. Wages were good enough so that almost anyone could save, and the power of compound interest did the rest. At the same time, it was cheap to get into the housing market, people were more conscious about debt, and the stock market was a

8 financial mistakes that millennials make

Unfortunately, young people are not as financially literate as they'd like to believe. My generation of Millennials is notorious for thinking we've got it all figured out, but according to a recent study on financial literacy, we're not nearly as clever when it comes to money management as we'd like to believe. Only 8 percent of 5,500 Millennials

FinTech Can Help Increase Financial Literacy

Technology continues to revolutionize the financial services landscape. From mobile payments, app based investing platforms, to online banking solutions, financial technology (FinTech) has revolutionized not only how consumers receive financial services but also how they expect to receive such services. In some cases, innovations including mobile wallets and no fee investment platforms have helped to

Reader Poll: The Case for Financial Literacy

Calls for improved financial literacy remain a constant refrain as a means to help assure the nation’s financial security – what do NAPA Net readers think? Let’s start with how early should we start teaching kids about finance. More than 4 in 10 (41%) said between fourth grade and high school, but nearly as many

Push Your Clients to Seed an Emergency Fund

The biggest financial mistake most Americans are making is not maintaining an emergency fund. “I’ve written and spoken about this issue before, but it bears repeating because this truly is a national crisis,” said Carla Dearing, chief executive officer of SUM180, an online financial wellness service located in Lexington, Ky. “The single worst money mistake

Millennials, Technology And The Challenge Of Financial Literacy

Modern life has brought new challenges — and millennials are feeling some of those challenges more keenly. There is a significant gulf between real financial literacy and financial confidence. A surprising number of millennials lack a basic understanding of finance. Managing money can be a full-time job for anybody who wasn’t born into an abundance

How The Financial Landscape Disadvantaged Millennials — And How We’re Helping Ourselves

Before knowing if we’d grow up to be journalists or engineers, we all learned to write essays and add fractions. We would for certain grow up to pay taxes and build credit, yet few learned to read financial forms and phrases. Now as adults, 57% of us struggle with financial literacy—and it’s not our fault. We grew