Financial illiteracy is the #1 Economic Crisis in our country and is threatening Americans’ aspirations for socioeconomic advancement and equal opportunity. The President’s Advisory Council on Financial Literacy stated, “Financial illiteracy is not an issue unique to any one population. It affects everyone: men and women, young and old, across all racial and socioeconomic lines. No longer can we stand by and ignore this problem. The economic future of the United States depends on it.”
People of color, women and the least educated have some of the lowest financial literacy rates in the nation, a major concern for a country with a widening wealth and income gap.
What is financial literacy
Financial Literacy is not just a budget. In fact, it is also a solid financial understanding of the time value of money. It is having skills like long-term vision, the ability to plan for the future, and the discipline to use those skills every day. Being financially literate means understanding where you are today, and having the knowledge needed to develop a road map to get you and your family to the prosperous financial future, you want.
A lack of a #PersonalFinance education has likely exacerbated the negative impact of COVID-19. #FinLitFact pic.twitter.com/nbZop0TFYi
— DoughMain Financial Literacy Foundation (@DMFinLit) January 30, 2021
It’s time to close the gap between those who know how money works and those who don’t. It’s time to break the cycle of endless debt, foolish spending, and financial cluelessness, so anyone who wants to take control of their financial future has the knowledge to make it happen.
43% of Americans can’t answer the most basic questions about how money works.
Financial literacy equips us with the knowledge and skills to be able to make sound financial decisions that will help us manage money more effectively and even the playing field for everyone. It includes the understanding of how money works, how money is made, spent, and saved as well as how to manage debt. People with appropriate financial literacy generally are better at making financial decisions and how to manage money.
It’s important for adults who live and work on Main Street to know how to manage their finances like people who work on Wall Street. Since economic inclusion and financial well-being begins with financial literacy and providing a financial education to as many people as possible.
Equally, its important to deliver financial literacy to Americas’ diverse underserved middle class, teach people from all generations and socioeconomic communities how money works, how to eliminate debt, cancel interest, improve credit, build equity and will optimize their ability to accumulate wealth.
Increasing financial literacy will help America close it’s widening wealth gap and can even assist in leveling the financial playing field for everyone.
References:
- https://www.financialliteracy.group/2020/05/financial-literacy-for-african-americans/
- https://www.financialliteracy.group/
- https://www.superbcrew.com/the-financial-literacy-group-llc-is-on-a-mission-to-help-america-close-its-wealth-gap/
- https://howmoneyworks.com/financialliteracygroup/challenge