Category Archives: Health Crisis

Humana TRICARE and Medicare

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Tricare for Life coverage will be effective when your Medicare is effective. Medicare Part A is free for eligible beneficiaries, but there will be a premium for Medicare Part B. The premium amount varies yearly and may be based on your income.

Humana TRICARE and Medicare are two programs that play crucial roles in providing health coverage to different groups of individuals. Here’s what you need to know:

  1. TRICARE and Medicare Interaction:
    • TRICARE is the health care program for uniformed service members, retirees, and their families. It provides comprehensive coverage for medical services, prescriptions, and more.
    • Medicare, on the other hand, is a federal health insurance program primarily for people aged 65 and older, as well as certain younger individuals with disabilities or specific medical conditions.
  2. Becoming Medicare-Eligible:
    • At Age 65:
      • If you’re age 65 and entitled to Medicare, you are automatically covered by TRICARE For Life (TFL). TFL acts as a wraparound coverage, paying your out-of-pocket costs in Original Medicare for TRICARE-covered services.
      • You are not eligible to enroll in other TRICARE health plans.
    • Under Age 65:
      • If you’re under age 65 and Medicare-eligible, you have options:
        • Enroll in a TRICARE Prime option or use TRICARE For Life.
        • TRICARE-eligible family members under 65 can also enroll in different TRICARE health plans.
        • Request enrollment changes within 90 days of the Medicare-eligible family member’s Medicare effective date.
  3. Medicare Basics:
    • Original Medicare (Parts A and B):
      • Part A: Hospital insurance (financed by payroll deductions during working years).
      • Part B: Medical insurance (primarily covers outpatient services; you pay a premium based on income).
    • Medicare Supplement Insurance (Medigap):
      • Optional coverage that pays out-of-pocket costs in Original Medicare.
    • Medicare Advantage (Part C):
      • Offered by private companies, it provides all Part A and Part B services, often with Part D pharmacy coverage.
    • TRICARE For Life:
      • Coordinates with Medicare, eliminating the need for you to file claims.
  4. Important Considerations:
    • Medicare Part B Requirement:
      • To maintain TRICARE coverage, you must have Medicare Part B, even if you live overseas.
      • Failure to have Part B may result in losing TRICARE coverage.
      • Sign up for Part B during your Medicare Initial Enrollment Period.
    • Veterans and Medicare Advantage Plans:
      • Humana Medicare Advantage (MA) plans complement VA coverage.
      • They offer additional benefits, affordable costs, and options for care closer to home.

Medicare Part B

For 2024, the standard monthly premium for Medicare Part B enrollees will be $174.70, which is an increase of $9.80 from the 2023 premium of $164.901. Additionally, the annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, up from $226 in 20231.

If your income is above a certain threshold, you may be subject to an Income-Related Monthly Adjustment Amount (IRMAA), which is an additional charge on top of the standard monthly premium. The IRMAA affects individuals with an income of more than $103,000, or couples filing jointly with an income above $206,0002. The exact amount of the IRMAA depends on your income level.

Please note that these figures are based on the information available as of now and could be subject to change. It’s always a good idea to check the latest details from the official Medicare website or contact Medicare directly for the most current information.

Understanding the intricacies of TRICARE and Medicare is essential!

National State of Emergency in Children’s Mental Health (An Unreported Crisis by Major Media Outlets)

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By 2018, suicide was the second leading cause of death for youth ages 10-24.

Health professionals, who are dedicated to the care of 73 million American children and adolescents, have witnessed soaring rates of mental health challenges among children, adolescents, and their families over the course of the COVID-19 pandemic. This has prompted the American Academy of Pediatrics (AAP), the American Academy of Child and Adolescent Psychiatry (AACAP) and the Children’s Hospital Association (CHA) to join together to declare a National Emergency in Child and Adolescent Mental Health.

Nationally, adolescent depression and anxiety — already at crisis levels before the pandemic — have surged amid the isolation, disruption and hardship of COVID-19. Children and families across our country have experienced enormous adversity and disruption, writes the American Academy of Pediatrics.  The inequities that result from structural racism have contributed to disproportionate impacts on children from communities of color. 

In the declaration, the groups emphasize that young people in communities of color have been impacted by the pandemic more than others and how the ongoing struggle for racial justice is inextricably tied to the worsening mental health crisis.

And, this worsening crisis in child and adolescent mental health is inextricably tied to the stress brought on by COVID-19 and the ongoing struggle for racial justice and represents an acceleration of trends observed prior to 2020.

Rates of childhood mental health concerns and suicide rose steadily between 2010 and 2020 and by 2018 suicide was the second leading cause of death for youth ages 10-24.

“Young people have endured so much throughout this pandemic and while much of the attention is often placed on its physical health consequences, we cannot overlook the escalating mental health crisis facing our patients,” AAP President Lee Savio Beers, M.D., FAAP, said in a statement. “Today’s declaration is an urgent call to policymakers at all levels of government — we must treat this mental health crisis like the emergency it is.”

The pandemic brought on physical isolation, ongoing uncertainty, fear and grief.

The Centers for Disease Control and Prevention researchers quantified that toll in several reports. They found between March and October 2020, emergency department visits for mental health emergencies rose by 24% for children ages 5-11 years and 31% for children ages 12-17 years. In addition, emergency department visits for suspected suicide attempts increased nearly 51% among girls ages 12-17 years in early 2021 compared to the same period in 2019.

In other research, the CDC found nearly 45 percent of high school students were so persistently sad or hopeless in 2021 they were unable to engage in regular activities. Almost 1 in 5 seriously considered suicide, and 9 percent of the teenagers surveyed by the CDC tried to take their lives during the previous 12 months.

In short, the pandemic has intensified this crisis: across the country mental health professionals have witnessed dramatic increases in Emergency Department visits for all mental health emergencies including suspected suicide attempts.

References:

  1. https://www.aap.org/en/advocacy/child-and-adolescent-healthy-mental-development/aap-aacap-cha-declaration-of-a-national-emergency-in-child-and-adolescent-mental-health
  2. https://publications.aap.org/aapnews/news/17718
  3. https://www.washingtonpost.com/education/2022/12/05/crisis-student-mental-health-is-much-vaster-than-we-realize/

Highly Processed Foods Can Result in Premature Deaths

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A growing body of evidence suggests that consuming too much highly processed food — items like hot dogs, chips, soda and ice cream — can have consequences beyond obesity and high cholesterol.

Foods that are “ultra-processed” contain more artificial ingredients than those that just have added salt, sugar or oil. These foods are ready-to-consume products that are made up entirely or mostly from substances extracted from food (oils, fats, sugar, proteins), derived from food constituents (hydrogenated fats, modified starches), or synthesized, based on organic materials (dyes, flavorings, flavor enhancers and other additives used to alter the food’s sensory properties).

Source: Bing.com images

They usually have very few whole ingredients and contain flavorings, colorings or other additives. Instant noodles, frozen pizza and store-bought cookies typically fall within this category.

In the U.S., ultra-processed food makes up around 57% of daily calories, on average. Based on that, Eduardo Nilson, a nutrition researcher at the University of São Paulo and the study’s lead author, believes the U.S. could expect more premature deaths associated with food.

Many previous “ultra-processed” studies have linked ultra-processed food to other negative health outcomes, including a higher risk for diabetes, cognitive decline, heart disease and cancer. An August study found that people in Italy who consumed ultra-processed food in large quantities had a higher overall risk of death.

Maura Walker, an assistant professor of nutrition at Boston University who wasn’t involved in the research, cautioned that this study did not show that ultra-processed food consumption directly caused premature death — only that there was an association. But the connection makes sense, she said.

Ultra-processed foods can often be identified by their long list of ingredients, many of which you wouldn’t normally find in your own kitchen and are often difficult to pronounce.

But not everything in this category is harmful, according to Dr. Walter Willett, a professor of epidemiology and nutrition at the Harvard T.H. Chan School of Public Health. For example, whole grain bread and whole grain breakfast cereals are sometimes considered ultra-processed, but they are also sources of dietary fiber, which can lower the risk of heart disease or cancer.

For that reason, Willett said, it’s important to focus on avoiding particular foods that are significantly associated with a risk of premature death.

The results from this study highlight the damage to health that is arising based on the observed trend in Brazil of replacing traditional meals, based on natural or minimally processed foods, with ultra-processed foods. These results also support the recommendation of avoiding the consumption of these kinds of foods.

References:

  1. https://www.ajpmonline.org/article/S0749-3797(22)00429-9/fulltext
  2. https://www.nbcnews.com/health/health-news/highly-processed-food-linked-early-death-study-rcna55455
  3. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4544452/

The Next Pandemic: Mental Illness has Arrived

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May is Mental Health Awareness Month, which is a time to bring awareness to this pervasive issue affecting millions of Americans and people worldwide. 

Within the past couple of years, this country has been facing a crisis that can no longer be ignored, the number of Americans dealing with mental health continues to grow.  

Mental Illness is the emerging post-Covid reality that a building crisis of poorly treated mental illness, anxiety, depression and suicide, writes Daniel Henninger, Opinion Columnist, Wonder Land, The Wall Street Journal.

Depression, self-harm and suicide are rising among young people. Suicide, already the second leading cause of death among people 15 to 34 before the pandemic, has increased.

The 2020 pandemic highlighted the significance of prioritizing mental health yet the number of those walking around untreated continues to grow. At some point, we will have to realize that mental health is a serious crisis for the country. 

America is facing a national mental health crisis that could yield serious health and social consequences for years to come. —American Psychological Association (APA).

According to the Centers for Disease Contro and Prevention (CDC), a study released in August 2020 that showed that over 40 percent of adults in the United States reported dealing with mental health challenges or substance use. 

Additionally, suicidal ideation continues to increase among adults in the U.S. The number of youth struggling with depression has increased, according to Mental Health America.

What’s alarming is that more than 50 percent of of adults with a mental illness do not receive treatment, totaling over 20 million adults in the United States who are being untreated. White youth with depression were more likely to receive mental health treatment while Asian-Americans youth were least likely to receive mental health care.

Many Americans spent the 26 months of the pandemic drinking too much alcohol or using drugs. One result: The Centers for Disease Control and Prevention just reported a record number of deaths from drug overdoses last year, nearly 108,000 and 15% higher than 2020, prominently from fentanyl.

Absent medical treatment, some of the most severely mentally ill individuals self-medicate on the street with alcohol or drugs, turn violent and typically end up in filling the jails and prisons across the country.

The solution to the deinstitutionalization movement of the 1970s emptied the mental hospitals was supposed to be outpatient “community care.” It never happened.

With the incidence of disorders and suicides rising, there will be postmortems on the damage done during the pandemic to young people. With their schools closed, some isolated from friends and disintegrated inside social-media sites like TikTok or the online cauldrons.

It was clear the lockdowns and closings were wrecking mental health, especially among children and teens. Sadly, the National Institute of Mental Health did not have a seat at the decision table at the national level. Political officials ceded complete control of pandemic policy to public-health authorities. Next time, private and personal mental health should get a voice.

Between the social isolation, economic instability, political turmoil, racial violence, death and sickness, and overall uncertainty about the future, it is no wonder that mental health in America is on the decline, that depression and anxiety levels are on the rise, and that the demand for mental health and addiction treatment is skyrocketing.

Mental disorder has become too pervasive to sweep under a rug. The current national solution has been to let families alone pick up the broken pieces. It’s not enough.

Write henninger@wsj.com.

Your mental health matters!

Mental health is just as important as physical health. Good mental health helps you cope with stress and improve your quality of life.

References:

  1. https://www.wsj.com/articles/the-next-pandemic-mental-illness-homelessness-buffalo-shooting-online-hospital-11652906894
  2. https://afro.com/mental-health-in-a-pandemic-take-it-seriously/
  3. https://www.psychologytoday.com/us/blog/nurturing-self-compassion/202103/is-mental-health-crisis-the-next-pandemic
  4. https://go.usa.gov/xuQPu #MentalHealthAwarenessMonth

Emotional Well-being: College Student Mental Health

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Improving the lives and futures of young adults by strengthening connections and building resilience.

Mental health continues to be a major concern on college campuses around the world, according to new research published by the American Psychological Association.

The research reveals that the prevalence of depression and anxiety in young people continues to increase, now reaching its highest levels, a sign of the mounting stress factors due to the convergence of the coronavirus pandemic, political unrest, and systemic racism and inequality. 

Additionally, researchers from the World Health Organization found that a staggering 35 percent of first year college freshmen struggled with a mental illness. The most common mental illness observed was major depressive disorder, with 21.2 percent of respondents experiencing lifelong symptoms, followed by general anxiety disorder, which affects 18.6 percent of students.

When it comes to suicide in particular, the American Academy of Child and Adolescent Psychiatry points to data showing that by 2018, suicide was the second-leading cause of death for people between the ages of 10 and 24.

And, since 2014, anxiety and depression have been college students’ leading mental health issues, according to research conducted by Boston University.

According to the most recent Healthy Minds Study, which surveys tens of thousands of college and university students across the U.S., 41% of all students screened positive for depression over the spring semester, and 34% screened positive for anxiety. They are the highest levels observed by the study. However, this year’s results are part of a steadily increasing trend, and students surveyed said that while the pandemic impacted their mental health, it wasn’t the root cause.

Help is on its way

RADical Hope is a nonprofit committed to improving the lives and futures of young adults by strengthening connections and building resilience. The RADical Hope movement is two-fold: educate all constituents of the college community the warning signs and implore them to take action. And, help to identify students who need help but are not able to ask for it.

RADical Hope wellness program, RADical Health, attempts to empower and equip college students with tools to stay well and stay resilient dealing with the day-to-day challenges of life on college campuses. Their strategy is to utilize proven effective techniques and procedures to counter the accelerating rise in college student anxiety and depression.

RADical Hope is currently partnering with ten colleges and universities to develop, identify and partner with frontline engagement programs that deliver three priorities: Connectivity, Engagement, Empowerment.

And, reaching college-age kids is vital. “64% of kids who drop out of college do so because of mental illness,” says Ken Langone, Co-Founder of Home Depot, who adds, “Our purpose [for RADical Hope] is to identify the kids who aren’t reaching out for help and assure them there is a better future.”

References:

  1. https://www.cnbc.com/2018/10/04/4-ways-to-be-proactive-about-your-mental-health-in-college.html
  2. https://www.bu.edu/articles/2021/depression-anxiety-loneliness-are-peaking-in-college-students/
  3. https://radicalhopefoundation.org
  4. https://www.wuft.org/news/2021/09/22/mental-health-challenges-abound-among-college-students/
  5. https://healthymindsnetwork.org/hms/

The National Suicide Prevention Lifeline contact is 1-800-273-8255 (en español: 1-888-628-9454; deaf and hard of hearing: 1-800-799-4889) or the Crisis Text Line by texting HOME to 741741.

Delta Variant Infecting Unvaccinated

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Only about 46 percent of the U.S. population is vaccinated. Politico

In the U.S. Midwest and South, the highly transmissible Delta variant is spreading quickly among the unvaccinated population, according to federal health officials.

But many people who are not vaccinated are also resistant to wearing masks and are ignoring recommendations to avoid crowded indoor spaces, heightening the virus spread. Only about 46 percent of the U.S. population is vaccinated, and the number of doses administered has fallen, according to the Centers for Disease Control and Prevention (CDC).

The federal government will try to convince hesitant Americans to get vaccinated by communicating the benefits of the shots. But, President Biden’s team is not confident that a new campaign will change hearts and minds of the reluctant.

Additionally, the Biden administration acknowledged that the U.S. will not reach its goal of having 70% of adults vaccinated by the July 4th Holiday.

Delta variant

New Covid-19 infections have increased by more than 50 percent over the last two weeks in under-vaccinated states. Many of the cases are tied to the Delta variant, which the CDC says now accounts for one-fifth of new infections nationwide. The Delta variant, which was first identified in India, is more infectious than previous coronavirus strains.

“Based on the data that we have right now, the Delta variant is more transmissible than Alpha,” the strain that has predominated in the U.S. this spring, said Summer Galloway, a senior adviser at CDC.

The CDC is currently in the midst of conducting studies to pin down just how well the current vaccines protect against Delta and what impact it has on the unvaccinated population, particularly children. Additionally, the CDC is studying whether the Delta variant leads to more severe infections in undervaccinated communities.

Ending COVID-19

The hope was that once the nation reached herd immunity, the virus would die out. As a result of the Delta variant, the current level of vaccine immunity is insufficient to end the pandemic in the United States.

The higher the contagion, the larger share of the population must be immune. To end the pandemic, a majority of the unvaccinated in the United States must gain immunity, and the best way is through vaccines

The good news is that recent data shows the Pfizer vaccine is nearly 90 percent effective against Delta, making vaccination one of the most effective ways to stop the variant’s march across the U.S.

The CDC continues to encourage people who are unvaccinated to wear masks and avoid crowded indoor gatherings.

Dr. Michael Ryan, executive director of the WHO’s World Emergencies Programme, said the Delta strain should make the world “more cautious, more diligent, and more dedicated to” following health protocols.

References:

  1. https://www.politico.com/news/2021/06/26/white-house-vaccination-delta-variant-496343
  2. https://www.forbes.com/sites/alisondurkee/2021/06/25/who-urges-fully-vaccinated-people-to-continue-wearing-masks-as-delta-variant-spreads-but-no-word-from-cdc/amp/
  3. https://khn.org/morning-breakout/perspectives-delta-variant-spreading-rapidly-among-unvaccinated-steps-to-avoid-another-pandemic/

COVID-19 Pandemic End is in Sight

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“When it comes to COVID-19, we are optimistic that the end of the beginning is near.” Bill Gates

Billionaire philanthropist and Microsoft Founder Bill Gates believes that we will get COVID-19 under control in calendar 2021. What he means by “under control” is that America and the world will be heading back to something approaching normal again.

Gates is optimistic that the number of cases and deaths will start to go down—at least in wealthy countries—and life will be much closer to normal than it is now for two main reasons:

  • One is that masks, social distancing, and other interventions can slow the spread of the virus and save lives while vaccines are being rolled out.
  • The other reason is that in the spring of 2021, the vaccines and treatments will start reaching the scale where they’ll have a global impact.

In Gates’ view, the coronavirus is somewhat seasonal. He suggests that once the Northern Hemisphere gets into summer, the numbers should go way down, and he expects that countries will not experience another COVID-19 wave in the fall.

He stresses that vaccinations by the fall should be “bearing the brunt” of ending the pandemic. He feels that there will still be some COVID restrictions on public gatherings, because, as “long as the disease is out there in other countries, you can still get big chains of infection anywhere on the globe”.

But if we get the vaccination levels up within the communities and across the globe this fall, all the schools will be able to reopen under some protocol. Moreover, entertainment, travel and hospitality will be open. And, the economy will be on the mend in a big way. The good news according to Bill Gates is that the pandemic, as bad as it’s been, the end is in sight.

“Humans have never made more progress on any disease in a year than the world did on COVID-19 this year”, Gates wrote in a recent Gatesnote. “Under normal circumstances, creating a vaccine can take 10 years. This time, multiple vaccines were created in less than one year.”

The Bill and Melinda Gates foundation has invested more than $1.75 billion in the fight against COVID-19. Most of that funding has gone toward producing and procuring crucial medical supplies. For example, the foundation backed researchers developing new COVID-19 treatments including monoclonal antibodies, and they worked with partners to ensure that these drugs are formulated in a way that’s easy to transport and use in the poorest parts of the world so they benefit people everywhere. Which is pretty remarkable—especially considering that COVID-19 was a virtually unknown pathogen at the beginning of 2020 and how rigorous the process is for proving a vaccine’s safety and efficacy. The vaccine still had to meet strict guidelines before being approved.

References:

  1. https://www.gatesnotes.com/About-Bill-Gates/Year-in-Review-2020?WT.mc_id=20201222100000_YIR2020_BG-TW_&WT.tsrc=BGTW
  2. https://www.pbs.org/newshour/amp/show/bill-gates-on-tackling-climate-change-and-the-ongoing-pandemic-response?__twitter_impression=true

COVID-19 Cases Have Dropped 77% in Six Weeks

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“COVID cases have dropped 77% in six weeks. Experts should level with the public about the good news.”  Dr. Marty Makary, surgeon and professor at the Johns Hopkins School of Medicine and Bloomberg School of Public Health

Dr. Anthony Fauci, White House COVID adviser, reassured Americans that the millions of coronavirus vaccine doses delayed by winter storms in the Northeast and Texas would be delivered this week as the nation approaches the half million mark for deaths due to Covid-19.

Despite the delays in vaccine delivery, there are signs the pandemic has eased in the U.S. in recent weeks. The 7-day average for daily deaths has fallen more than a third since mid-January, while new infections are down nearly 70% since then, according to data from the New York Times. Additionally, according to data from John Hopkins University more than 498,900 people have died of COVID-19 as of Monday morning. Globally, 2.4 million people have passed due to the virus.

Dr. Marty Makary, a surgeon and a professor at the Johns Hopkins School of Medicine and Bloomberg School of Public Health, believes that the coronavirus will be “mostly gone” and ” normal life will return” by April 2021.  In an op-ed published by The Wall Street Journal, Dr. Makary argued that half of the U.S. has already reached herd immunity because there are more coronavirus cases in the country, possibly 6.5 times as many, than the 28 million that have been reported.

“There is reason to think the country is racing toward an extremely low level of infection,” Makary wrote. “As more people have been infected, most of whom have mild or no symptoms, there are fewer Americans left to be infected. At the current trajectory, I expect COVID will be mostly gone by April, allowing Americans to resume normal life.”

Dr. Makary cites observational data which shows that the majority of Americans may already be protected not only from COVID-19 but also its new variants.  He states, “My prediction that Covid-19 will be mostly gone by April is based on laboratory data, mathematical data, published literature and conversations with experts.”

“But the consistent and rapid decline in daily cases since Jan. 8 can be explained only by natural immunity,” Makary wrote. “Behavior didn’t suddenly improve over the holidays; Americans traveled more over Christmas than they had since March. Vaccines also don’t explain the steep decline in January. Vaccination rates were low and they take weeks to kick in.”

Even with daily new infections falling below 70,000 on a 7-day rolling average, the Centers for Disease Control and Prevention has warned that more contagious variants could cause those numbers to rise again.

References:

  1. https://www.newsweek.com/john-hopkins-doctor-thinks-covid-will-largely-gone-april-half-us-has-herd-immunity-1570615
  2. https://www.wsj.com/articles/well-have-herd-immunity-by-april-11613669731
  3. https://meaww.com/dr-marty-makary-johns-hopkins-surgeon-professor-claims-us-covid-mostly-gone-april-us-herd-immunity
  4. https://www.ftportfolios.com/common/contentfileloader.aspx?contentguid=2a5d4dcf-5eda-4310-8d23-af162f8fb7e9

Johnson & Johnson Vaccine

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A single-shot coronavirus vaccine from pharmaceutical giant Johnson & Johnson was effective at preventing illness, hospitalizations and deaths in global trial. But its protection against sickness was stronger in the United States and weaker in South Africa, where a worrisome coronavirus variant now dominates.

The results, once granted emergency use authorization by the FDA, would put a third vaccine on the market in the United States. A third vaccine could accelerate the ability to broaden immunity, as variants that challenge the current generation of vaccines spread across the world.

The vaccine trial was primarily designed to measure how well the vaccine prevented illness. It was 66 percent effective overall at preventing moderate and severe disease: it was 72 percent effective at protecting against moderate to severe illness in the United States, but it was 66 percent effective in Latin America and 57 percent effective in South Africa, where concerning variants have taken root.

Company officials emphasized the vaccine was 85 percent effective at preventing severe illness, and there were no cases of COVD-related hospitalization and death in people who received the vaccine. There were five COVID-related deaths in the trial, all in people who received the placebo, not the vaccine.

Johnson & Johnson is expected to apply for emergency use authorization from the Food and Drug Administration late next week. If the review follows the path of two earlier vaccine candidates, the shot could be authorized and available to the public by March.

The J&J vaccine uses a different technology than the two FDA  authorized mRNA vaccines. This vaccine employs ‘a harmless cold virus’ to deliver a gene that carries the blueprint for the spiky protein found on the surface of the coronavirus. The virus infects cells, which then follow the genetic instructions to construct a replica of the coronavirus spike.

In contrast, the Pfizer and Moderna vaccines use a strip of genetic material called messenger RNA to instruct cells to build the spiky protein found on the surface of the coronavirus. In both cases, the immune system learns to recognize the real virus by mustering an immune response to the spike.

References:

  1. https://www.washingtonpost.com/health/2021/01/29/covid-vaccine-johnson-and-johnson
  2. https://www.washingtonpost.com/health/2020/09/23/coronavirus-vaccine-jj-single-shot/?itid=lk_inline_manual_2

Financial Literacy and COVID-19 | Charles Schwab Foundation

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“89 percent of respondents to a Charles Schwab’s survey believe a lack of financial literacy contributes to larger social issues—from poverty, to fewer job opportunities, to wealth and gender inequality.” Carrie Schwab-Pomerantz

  • Even in the wake of a global health crisis, Americans value financial education.
  • An overwhelming majority of Americans believe that a lack of financial literacy contributes to larger social issues.
  • Americans want our schools to take the lead in providing our youth with a financial education.

The impact of financial illiteracy is not lost on the American public. 89% of Americans agree that lack of financial education contributes to some of the biggest social issues our country faces, including poverty (58%), lack of job opportunities (53%), unemployment (53%), and wealth inequality (52%).

“Financial illiteracy is insidious. The antidote is financial education, which gives people the skills they need to make smart money decision and can help improve their lives.” Carrie Schwab-Pomerantz, president of Charles Schwab Foundation.

Americans indicated they wish they had better money management skills, according to a Charles Schwab survey. When asked what they would teach their younger selves about personal finance based on what they know today, Americans said the value of saving money (59%), basic money management (52%), and how to set financial goals and work toward them (51%).

From the survey, it is apparent that every person in America should be taught the fundamentals of money management including budgeting, saving, avoiding debt, setting financial goals and investing.

“The pandemic has underscored just how critical basic personal finance skills are in preparing for the unexpected. Financial literacy is a survival skill that everyone needs.” Carrie Schwab-Pomerantz

Carrie Schwab-Pomerantz recommends five key steps every American can take to help shore up their finances during this period of global health crisis and economic uncertainty.

  • Start an emergency fund (or add more to it) to help protect yourself against an unexpected drop in income or expense shock. Set aside whatever you can – every little bit counts. Try to aim for $1,000-$2,000 to get started, and then work your way up to 3-6 month worth of essential expenses over time.
  • Create a budget to help you prioritize and assess your financial resources. Self-isolation has led to different spending patterns for many people, including cutting back on what we may have previously thought of as “essential.”
  • Create a financial plan to help you navigate from where you are to where you want to be. You don’t need to have a lot of money to need a financial plan. Consider it a roadmap to reach your financial goals, whether that’s to pay off debt, build savings, or make a large purchase.
  • Ask for help if you’re struggling. Given the scale of this economic crisis, the government, lenders and creditors are trying to work with borrowers through this difficult time. Don’t hide from creditors – that can make things worse.
  • Focus on what you can control. You can’t predict or control the market, but you can control how you manage your investments, your savings rate, having a financial plan and how you react to events.

“The need for financial literacy is especially urgent for women and minorities, who continue to face unique challenges at home and in the workplace,” said Schwab-Pomerantz.

However, financial literacy isn’t a cure-all, but it is an essential key to unlocking doors to opportunity and financial security.

References:

  1. https://www.schwab.com/resource-center/insights/content/americans-want-financial-literacy-now?SM=URO#sf237483690
  2. https://pressroom.aboutschwab.com/press-releases/press-release/2020/Charles-Schwab-Financial-Literacy-Survey-Exposes-Grave-Impact-of-Lack-of-Financial-Education-During-COVID-19/default.aspx