Financial Literacy and Positive Future Financial Outcomes and Behaviors

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Financial Literacy Is Significant Indicator of Positive Future Financial Outcomes and Behaviors

The first step for Americans to achieve a financially stable and secure tomorrow is to measure and manage your current personal financial situation. You can do this by taking a proactive approach to managing your money and controlling your spending.

Furthermore, it important to recognize the warning signs that a financial hardship may be in your future. If you’ve fallen behind in your credit card payments, are receiving calls from collection agencies, or financial issues are affecting your home life, financial literacy can provide you the skills and knowledge to help you take control of your finances.

Only 17 U.S. states require a financial literacy course in high school which might explain why U.S. adults averaged an “F” on a recent survey about financial literacy.

Taking control of your financial future and start building wealth

If you’re like most Americans, you’ve thought about financial literacy, saving, investing and building wealth.  Maybe you’ve already started. Or maybe you’re still behind the financial curve. All that matters now is that you’re heading down the responsible path of financial illiteracy and building your wealth. Because this isn’t just about making your money work for you – it’s about ensuring your current and future quality of life.

And whether that means retiring early, supporting your family, or simply having the financial safety net to pursue your long-forgotten dreams, financial literacy and getting started investing are critical.

“Achieving financial literacy for all Americans has always been an important goal”, said Harvey L. Pitt, Chairman, U.S. Securities and Exchange Commission in testimony before an U.S. Senate Committee.  “With so many individuals and employees, through their employer’s 401K plan, invested in  markets, financial literacy is now not only important but an essential skill and goal.”

Budgeting, saving and investing for retirement.

All Americans should have the opportunity and the wherewithal to participate in financial markets. Financial literacy is a crucial foundation for participation and being successful. People need to be able to “read, write and speak” basic financial concepts in order to make informed investment decisions.

Beyond basic fairness issues, there are significant economic and social benefits of financial education. People of even modest means can realize financial peace of mind and financial security and all that it promises — such as buying a home, pursuing educational opportunities and retiring with dignity. As a society, we should want all Americans to have the opportunity and the ability to focus on building up their savings accounts and to invest in financial markets. Historically, investing in the market has resulted in returns superior to other savings strategies and financial assets.

References:

  1. https://www.sec.gov/news/testimony/020502tshlp.htm
  2. https://www.nfcc.org/resources/client-impact-and-research/2019-consumer-financial-literacy-survey/#:~:text=The%202019%20Consumer%20Financial%20Literacy%20Survey%20was%20conducted,overview%20of%20financial%20literacy%20statistics%20in%20the%20U.S.
  3. https://militaryfamilyadvisorynetwork.org/milcents/

We’re passionate about teaching financial literacy advising others how to save for the future, invest for the long term and build wealth for those who want to achieve financial security and comfortable retirement.

“Once you find the thing that you will do for free, then that’s the thing that you’re going to end up doing for a lifetime.’”

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