Financial literacy vital to long-term success
About two-thirds of Americans lack financial literacy — a concept that if understood and applied can change the course of one’s future — according to FINRA’s most recent National Financial Capability Study. If you are not sure how to properly manage your finances and budget, you’re more likely accumulate unsustainable debt, fall victim to fraud or face long-term repercussions, such as poor credit, bankruptcy and housing foreclosure.
Household budgeting, learning how to manage debt and evaluating the tradeoffs between different credit and investment products are just a few skills that fall under the umbrella of financial literacy. They’re also lessons that when learned and applied early in life can make significant impacts on your long-term financial health. Today, fewer than half of U.S. states require students to take personal finance courses, according to the Council for Economic Education. This is a missed opportunity for the remainder of the country and for millions of students who would benefit greatly from a better understanding of finances.