The data speaks for itself and it’s not good. Americans have a financial literacy problem.
- According to a May 2022 Lending Club survey, 64% of Americans live paycheck to paycheck.
- PWC reports that only 24% of millennials demonstrate the ability to understand basic financial concepts.
- Credit Karma reports that the average credit card debt is $6,198 in 2022 and growing.
- A Nerd Wallet study found that almost 1 out of 4 people (24%) don’t pay their bills on time.
- Annuity.org reports that 75% of American teens lack confidence in their knowledge of personal finance, and 25% of Americans say they don’t have anyone they can ask for trusted financial guidance.
- GoBankingRates reported that 40% of people had less than $300 in their savings in 2021.
- According to The Wall Street Journal, getting a post-secondary education leaves households in a very vulnerable situation where almost half of the households with active student debt cannot make their payments.
Most Americans understand the importance of financial literacy to create success and financial stability, but we continue to repeat the patterns that will lead us down the historical path to financial scarcity.
What’s Causing The Disconnect?
There are many factors that play a role in the nation’s low financial literacy rate. One is that our education system does not do enough to promote financial literacy. Fewer than 1 in 4 high school students are required to take a personal finance course before graduation, according to Next Gen Personal Finance. Only 23 states require high school students to take a stand-alone personal finance course.
Another reason for the disconnect is that financial literacy is not emphasized enough at home. A CNBC-Acorns study found that 83% of U.S. adults said parents are the most responsible for educating their children about money. Yet many parents don’t actually talk to their children about finances, the survey found that only 15% of parents said they spoke with their children more than once a week about household finances.
It’s Time For A Change
If you continue to approach financial management like most of your parents, you will end up like them: in debt, with no savings, and frustrated by financial constraints. A new approach is needed, and that starts with financial education. Americans are a mess when it comes to personal financial management, and it just does not need to be like this. It’s time for a change. It’s time to take control of our finances and empower ourselves with the knowledge and tools to make sound financial decisions. It’s time to start building the future we want and deserve. Personal financial management matters because you matter, your family matters, and our communities matter. Sound financial management provides a foundation to build an abundant life.
Live Your Abundant Life
Start making the decisions that will lead you to the life you want. Learn how to budget, save, invest, and make your money work for you. It’s not as difficult as you might think. And it all starts with taking that first step and learning more about personal financial management.
Evviva will give you plenty of resources to help you on your journey to financial freedom. But it all starts with you. You are the one in control of your finances. You are the one who decides what to do with your money. And you are the one who will reap the benefits – or suffer the consequences – of your financial decisions.
If you’re interested in living an abundant life, check out our article – 15 Money Habits That Are Harmful.
So, What Are You Waiting For?
Start learning about personal financial management today and begin building the future you want and deserve. Financial freedom is within your reach. All you have to do is take that first step.
Money is a taboo subject for many people. We don’t like to talk about it, and we certainly don’t like to think about it. But the fact is, money is a necessary part of life. And if we don’t start talking about it, we’ll never learn how to manage it properly.
Start By Changing Your Mindset
If you want to change your money mindset, it’s important to become more aware of your thoughts and beliefs about money. Once you’re aware of the negative thoughts that are holding you back, you can start to replace them with more positive, productive ones. Read “15 Ways to Change Your Money Mindset and Live with Abundance” to get started on building a growth mindset about money.
