19 Alarming Things We Learned About Financial Literacy in America

Financial Literacy





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12 Comments

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accuscope

Investing 101... First you must have some left at the end of the month in order to save or invest in the first place!... And many just do not have the spare cash at the end of the month.... Yes, Maybe some can be more careful and deny themselves an ice cream or going to the movies for the next 30 years, But try living on $7.00 an hour and see how much you can save... More than anything we need higher wages so people can afford to spend and save!

September 11 2012 at 9:55 AM Report abuse rate up rate down Reply
Matt

Why would we expect Americans to be financially literate? We have the FDIC to make sure that we don't have to do any research on banks. We have the SEC to do all of our homework in the stock market. We have the Fed printing monopoly money for us to spend on iPhones and LED TVs. We have all sorts of safety nets for unemployment. We have SS to take care of our retirement, etc.

There's no impetus or incentive for Americans to learn anything realting to the financial world. if you buy a house you can't afford because you didn't know what a 5/1 ARM was, don't worry! Obama (and probably Romney too) will make sure that the big bad greedy banks won't be able to foreclose on you.

The underlying problem is that personal responsibility, along with our financial literacy, is gone in America. If you buy a house you can't afford, it's not your fault, it was the bank. If you didn't save enough for retirement, it's not your fault, it was your employer's fault. Though the federal government is at the root of most of America's economic troubles, no one is willing to take personal blame.

September 10 2012 at 5:39 PM Report abuse rate up rate down Reply
Artie

I've always said that this illiteracy when it comes to financial matters is a major flaw in our education system. Don't you think high schools and colleges should include a mandatory course or two with respect to personal financial management by now? With all the crap they teach in most schools, no wonder we have a bunch of dummies out there when it comes to personal finance. With no background or education at all, many people grow up thinking social security was meant to live on in retirement or that having a CD is an investment. Just very sad commentary on a very important subject.

September 10 2012 at 9:28 AM Report abuse +1 rate up rate down Reply
Artie

Treasury's outperformed stocks over the past 30 years????? Someone better check their facts. I think there is a major misprint in this article. No wonder so many people get confused.

September 10 2012 at 9:19 AM Report abuse rate up rate down Reply
jhrooney

The kids expect everything their parents have WITHOUT HAVING TO WORK AND SAVE FOR IT. Not suprising since the parent by and large took pains to give them a better start than they had.

September 08 2012 at 12:54 PM Report abuse rate up rate down Reply
jgilles178

These studies raise serious doubt on the wisdom and effectiveness of consumer financial protections based only on disclosures. Even with good disclosures, people cannot protect themselves if they don't understand what they are reading. Thus, we may need more substantive protections even if that requires that we impose more burden on financial services providers.

September 08 2012 at 12:49 PM Report abuse rate up rate down Reply
maa2626

it is a parents job to lead by example in regard to financial litercy. not teaches, not the feds

September 08 2012 at 8:45 AM Report abuse -1 rate up rate down Reply
1 reply to maa2626's comment
Artie

So you propose that the blind lead the blind. The point of the article is that most parents know sh*t about financial planning and so THEY should pass on this lack of knowledge to their children? Yer way off!!

September 10 2012 at 9:32 AM Report abuse +1 rate up rate down Reply
Setanta

geee whiz,IF THEY CAN'T do basic maths,how the hell can they figure out any interest rates compounded daily or quarterly
what principal means
negative interest etc
how come we learned this by the 5th bleedin grade ?

and could this be why all the morons wind up with these MASSIVE student loan DEBTS ?
same for those signing papers for their zero down housing loans ?

September 07 2012 at 11:08 PM Report abuse +2 rate up rate down Reply
jdykbpl45

Just shows how our liberal, teacher union dominated, school system has systematically failed the country.
Equality of results, results in dumbing down of America. Do not re elect failure.

September 07 2012 at 6:00 PM Report abuse +3 rate up rate down Reply
2 replies to jdykbpl45's comment
Somey

Failure was Bush

September 07 2012 at 7:51 PM Report abuse -2 rate up rate down Reply
Artie

School systems just need to update their curriculum to include some basic personal financial course(s). It's amazing that in this day and age schools can continue to teach and offer all sorts of BS but don't have a MANDATORY class in personal finance. Frankly, I don't think this is a political issue, And if you think it is, I'd like to know how so? The problem is most teachers probably know next to nothing when it comes to financial matters. So, they would need to educate themselves before teaching such a class. This especially goes for younger teachers.

September 10 2012 at 9:41 AM Report abuse -1 rate up rate down Reply