Yikes: 2 out of 3 Americans Can’t Answer Basic Financial Questions
This is frightening (via BlackRock):
It’s undeniable that the current state of the economy is complicated. However, for some it is entirely perplexing. In a recent survey of Americans over 50, only one out of three participants could correctly answer three basic questions on compound interest, inflation, and diversification.
This is particularly troubling, as basic financial knowledge is required when dealing with common financial decisions like student loans, mortgages, and retirement savings. Economics and personal finance are topics that often aren’t put into practice until far after high school economics classes are taken and long forgotten. The current economy is ever-changing, and education is key to understanding how to invest.
Source: The New York Times, “Financial Literacy, Beyond the Classroom,” 10/5/2013
I’m hoping to do my part in the coming decades to help fight this as I truly believe it’s one of the great problems we face today…..