April is Financial Literacy Month
White Plains, NY (Law Firm Newswire) April 16, 2014 – Financial Literacy Month is being observed in April 2014.
This is an excellent time to recognize the important role that financial literacy plays in individual economic security and the financial health of the nation. Many Americans are not well-informed about important financial issues that affect their everyday lives. Schools, parents, government agencies and financial institutions and advisers all have a role to play in helping to increase knowledge and understanding of critical economic issues.
The overall lack of financial literacy among the general public is evident from a number of surveys. In one study conducted by the TIAA-CREF Institute, people over 50 years of age were asked three general financial questions. To be able to provide the right answer, they would need to understand the basics of inflation, interest rates and risk diversification. Only about one-third of the people answering the survey got all three questions right.
Individuals wishing to test their own financial literacy may take a similar quiz from the FINRA Investor Education Foundation. The quiz consists of five questions, and after completion one may compare one’s own performance to the national average and the averages for each state. The quiz has been taken by 25,000 consumers, and only 14 percent were able to answer all five questions correctly.
Surveys have also found that young Americans are less likely to be financially literate than older Americans, but that is not surprising considering that 26 states have no requirements for financial literacy education, and only four states require that students take a high school personal finance class.
A lack of financial literacy has real consequences, as studies show that people with a better understanding of personal finance are more likely to plan for retirement, and people who make such plans have an average personal wealth twice as great as people who do not. People with low financial literacy tend to save less, borrow more and pay higher fees for financial products. A lack of financial literacy also corresponds to people having difficulty with debt and not understanding the terms of mortgages and other loans. Without a basic understanding of personal finance, people are more likely to end up paying higher interest rates and avoidable fees.
New York Contact:
Maria M. Brill
Littman Krooks LLP
New York City Office
655 Third Avenue, 20th Floor
New York, New York 10017
(212) 490-2020 Phone
399 Knollwood Road
White Plains, New York 10603
(914) 684-2100 Phone
300 Westage Business Center Drive, Suite 400
Fishkill, NY 12524
(845) 896-1106 Phone
View Larger Map
- Guest Blog: Clothes Make the Man
Our guest blogger this week is Liane Kupferberg Carter, Writer, Journalist, and Autism Advocate. (Originally published on Autism After 16) It’s 51 degrees out. Which means my 21-year-old son Mickey is wearing shorts and sandals. “It’s too cold!” I protest. “But it’s May.” Well, yes. I get it. He hates socks. Loathes sneakers. Long sleeves […]
- Special Needs Trusts: How Much Trouble Are They to Manage?
By Bernard A. Krooks, Certified Elder Law Attorney A client recently asked the following question: I’m thinking about setting up a special needs trust for my son, who has a developmental disability. Will it mean a lot more work for my daughter, who will be handling my estate? It’s a fair question, and one we […]
- Structuring the Trust Fund
Trust funds allow parents and grandparents to ensure that children receive their inheritance slowly over time, rather than receiving it all at once at the age of 18. There are many factors to consider when creating a trust fund, but the impact of the trust on the beneficiaries is one of the most important considerations. […]
- Sorting Out A Transition Plan for Your Child
- Anonymous Let’s call my son Johnny. He has a neurological impairment and is ambulatory and impressively articulate. These are my views and perceptions as his mother. I hope the points that I will highlight will resonate with readers. I also hope that some of you will be motivated and proactive in not only […]
- Guest Blog: Notes From a Not-So-Empty Nester
Our guest blogger this week is Liane Kupferberg Carter, Writer, Journalist, and Autism Advocate. (Originally published by The Chicago Tribune) Maybe it’s just this time of year making me pensive. Summer is ending. Kids are leaving for college. Social media are crammed with articles and advice on how to weather the seismic family shift: […]