Fun, Scary, and Shocking Financial Literacy Facts
Financial literacy facts provide information on the competency of various population groups in using financial services. By understanding these facts, you can make informed financial decisions and develop good money management skills.
Factual data on financial knowledge can be scary, fun, or shocking. All this information aims to enhance financial literacy awareness among the masses. It also helps in coming up with targeted programs that can cover the financial needs of different people.
Financial Literacy Fun Facts
Usually, most monetary-related facts tend to be negative. However, some statistics on financial literacy are exciting and promising. These include:
1. Statistics from the Council for Economic Education show there has been a 24% increase in U.S. states that need high schoolers to partake in a personal finance program/course. This change occurred between 2018 and 2020.
2. Wallet Hub statistics indicate that New Hampshire, Virginia, Colorado, and Utah are among the most financially literate states in the U.S.
3. Data from the Financial Consumer Agency of Canada showed that Canadian citizens have an average score of 66 out of 100 in terms of financial wellbeing. Only a ¼ of these respondents reported they were struggling financially. This study also identified that having post-secondary education is closely associated with better financial literacy.
4. According to FINRA Investor Education Foundation, having financial literacy serves as a positive indicator of future financial decisions and outcomes.
5. The 2020’s NFCC Financial Literacy Survey showed that 78% of Americans who know about personal finance believe they could benefit from additional financial advice.
Shocking Financial Literacy Facts
Other financial literacy facts are entirely unexpected and shocking, for example:
1. America ranks 14th in financial literacy, despite being the world’s largest economy.
5. In 2020, financial illiteracy costs every American around $1600 and $415 billion nationwide.
Scary Financial Literacy Facts
Most teenagers and adults tend to ignore financial education. Currently, approximately 66% of Americans are financially illiterate. Some of the most concerning facts about this topic are:
1. The PISA study shows that about 1 in 5 U.S. teens don’t have elementary financial literacy skills.
2. BMO 2021 Survey indicated a 10% increase in impulse buying for cohorts aged 25-35 due to poor financial literacy. This change significantly affected their overall budget due to overspending.
3. 35% of individuals with poor credit records don’t do proper research l before going for credit cards.
4. The GFLEC study indicated that working men demonstrate higher financial literacy skills (47%) compared to working women (29%).
The same study showed that 54% of people with student loans didn’t try to speculate future payments before going for the loans.
From the above facts, it’s clear that financial literacy is essential to everyone, including teenagers. If you wish to avoid being part of these statistics, it would be best to work on your financial understanding.
You can improve your financial knowledge by taking high school and college finance courses or local programs, and also by checking into TeenLearner.
Today, there are even free online courses you can enroll in and get complete financial education. It’s also best to know your financial limits. In closing, don’t shy away from seeking professional help to start you on a positive path to success.
By: Robert Puharich | December 15, 2021 |