According to research published by CNBC, 75% of Americans don't know how to properly manage their finances. Also, 57% of Americans are financially illiterate. The majority don't know how to save, invest, or manage their money efficiently. And as a result, they make a lot of stupid mistakes that could have easily been avoided with a bit of financial education.
Many people have racked up credit card and student loan debt due to a lack of financial education. For one reason or another, they don't know how to make good decisions regarding saving, investing, or spending money. And unfortunately, that's led a lot of people down a dark path of poverty and constantly living paycheck to paycheck.
Take a moment to imagine what life would be like if you were taught how to pay taxes in school (and get a lot of deductions, so you have more money to spend on things you enjoy). Think about how much easier it would be to sleep at night if you had more than enough money in your bank account to pay rent and put food on the table. It would be pretty awesome... right?
We've already made the horrific mistake of not teaching ourselves financial education. Let's not screw up again with our kids. Instead, let's arm them with the necessary knowledge they'll need to thrive in modern society. Quoting an article published by Investopedia:
"Any improvement in financial literacy will have a profound impact on people and their ability to provide for their future. Recent trends are making it all the more imperative that consumers understand basic finances because they are being asked to shoulder more of the burden of investment decisions in their retirement accounts, all while having to decipher more complex financial products and options. Becoming financially literate is not easy, but when mastered, it can ease life's burdens tremendously."
"If we are going to make sure everyone in this country has food to eat and a roof over their heads, we have to teach them how to manage their money," said Nan Morrison, president, and CEO of the Council for Economic Education (CEE) during an interview with CNBC. "Student debt is still a challenge and, with the rise of the gig economy and more people responsible for their financial lives, more people are realizing we have to put this in our schools," she added.
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This article is for informational purposes only and should not be considered financial advice. Please consult a financial advisor before doing anything that could impact your finances.