financial literacy

/Tag: financial literacy

Why do so many people fall for financial scams?

In hindsight, david carter sees the deal differently. The 63-year-old has a Master’s degree in technology. A successful career meant he found a six-figure salary offer perfectly plausible. He knew from reading newspapers that tech stocks were up and the job market was hot. So when an email offered him a job with a Swiss firm

Communication, tools, safety net all key to improving retirement outcomes

Reforms should be better communicated to workers in efforts to combat behavioral biases and inadequate financial knowledge that undermines participants’ retirement decisions, the Organization for Economic Cooperation said in its latest pensions outlook report. The OECD called on combining funded and pay-as-you-go retirement plans, automatic mechanisms and a strong safety net for pensioners to boost retirement

Partially Privatizing Social Security Sounds Great, but Offers 2 Big Drawbacks

Few social programs bear as much importance to the financial well-being of older Americans as Social Security. Despite the average retired worker payout being only $1,417.22 a month in September 2018, the program is responsible for keeping 15.3 million retirees out of poverty. Furthermore, more than three out of five of today's aged beneficiaries lean

Six Steps To Implementing Financial Education In The Workplace

It is well known among employers that a lot of employees struggle with stress -- including financial stress -- at work. According to a recent survey from PwC, nearly one-third of employees report being distracted due to challenges with their personal finances. Persistent debts, outstanding bills, sudden large costs and overwhelming medical bills contribute to employees being

Are You Smarter About Personal Finance Than Your Fellow Americans?

There's a lot to know about your money. Unfortunately, many Americans don't know some of the basics that are important to making sound financial decisions. In fact, the Federal Reserve reported recently on how well Americans did when answering four basic financial literacy questions -- and there were a surprising number of incorrect answers. Can you correctly

Why We Need to Nurture Entrepreneurship in Young Girls

Last month, women on college campuses around the world gathered for Women Entrepreneurship Week, an annual event that brings budding female entrepreneurs together with female startup founders through workshops and panel discussions. Last year, it attracted participants from 76 universities in 15 countries. Programs like these promote and support women’s entrepreneurship—and we need more of them

America’s Growing Financial Literacy Problem

Making major personal finance decisions can be daunting for anyone. Whether the decision is related to paying back student debt or how to invest for the first time, the outcomes of these decisions have a long-term impact on the quality of our lives. Smart decisions can lead to achieving financial independence, while bad decisions can lead

Fintech savvy no substitute for financial literacy, finds study

Millennials’ usage of smartphones can’t fill gaps in their financial literacy, according to a new report. The study, titled Millennial Financial Literacy and Fin-Tech Use: Who Knows What in the Digital Era, comes from the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business. It assessed individuals’

Brushing up on financial literacy

Money is the greatest and the most ill-used factor in life. People don’t know how to tend it, how to manure it, how to water it, how to make it grow, and when to pluck its flowers and when to pluck its fruits.  These were the words spoken by Margayya, the people’s banker in the

Millennials don’t trust the financial industry. These startups want to change that.

One spring morning in New York City’s Financial District, several besuited men couldn’t help but stop and gaze at a rather out-of-place sign hanging from the New York Stock Exchange building. “Follow us on Pinterest!” read the enormous red banner. A few weeks later they stopped again, this time in front of a yellow sign

By the numbers: Americans are barely in control of their money

In an era of financial-services innovation, money remains one of the great stressors in our lives. By the numbers: 5% of Americans with checking accounts rack up more than 50% of all the country's overdraft and bounced-check fees. It's a $35 billion income stream for the banks, even after Dodd-Frank. Needless to say, those 5% of Americans are

Our most irrational financial habit? Cheaping out on retirement saving

Dan Ariely’s job is to figure out why you won’t pay attention to perfectly good financial advice such as spending less and saving more. Mr. Ariely is a professor of psychology and behavioural economics at Duke University in North Carolina and a co-founder of Toronto-based BEworks, a management consulting firm that uses behavioural science in

Half of Americans fail this quiz on Social Security retirement benefits

Forty-seven percent of adults ages 50 and above could not pass a simple Social Security quiz. Two topics that particularly confused quiz takers: full retirement age and spousal benefits. Not fully understanding Social Security strategies can result in big losses for retirees if they make a mistake when claiming benefits. If you can't pass a

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

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

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