Financial Literacy

Financial Literacy Awareness and Wage Increases Would Complement Policy Moves

Financial literacy awareness and wage stagnation are contributing factors in how much an employee can save for their retirement years.  There is no denying the current retirement plan policy proposals on the table for regulators and legislators, are good for American workers. The executive branch and lawmakers are looking for ways to make workplace retirement

Our Favorite Tools to Stay on Top of Your Financial Life

Getting your finances in order isn’t a one-time task — it’s an ongoing process. Whether it’s budgeting, planning your debt payoff, or monitoring your credit, your financial life needs regular, reliable attention. The right set of tools can help. We’ve rounded up some of the best money apps and services to help you get on

Do Financial Literacy Courses Work?

The classroom is where many Americans learn to read, write, perform arithmetic and speak a foreign language. So can it also be the place where they master important financial concepts such as how to manage debt, improve credit, take out student loans and plan for retirement? For many politicians, educators and financial literacy advocates, this question

Quiz: How Financially Literate Are You With Investing?

Are You Financially Literate? If you’ve ever paid attention to any report on financial literacy from around the world, you’ll likely know that the results aren’t exactly awe-inspiring. For example, according to one global survey, only about 33% of adults are financially literate. Americans tend to fare better on average, but not as much as you might

3 simple ways to overcome financial fragility

Can you handle an immediate $400 emergency expense? Are you able to come up with $2,000 in 30 days? If your answer is no, you are probably financially fragile. The National Endowment for Financial Education (NEFE) reports that nearly two out of five working-age Americans fall into this category. This means an unexpected medical bill, parking ticket or

5 Steps Everyone Must Know to Become Financially Literate

Legendary investor Warren Buffett used to say that the greatest risk in investing is when you don’t know what you are doing. Very often, many people invest in financial products that they don’t understand. They act based on their emotions without the appropriate investment information. They rely on recommendations made by friends or relatives rather

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

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