The lack of financial literacy is one of the reasons millennials make bad money decisions. This is the reason why financial literacy is important. Yet, there has been a decrease in the number of states that require testing to show whether learning objectives in those courses are being met. A lack of financial literacy is a problem not only in emerging or developing economies. Copyright © 2020 The New Daily. Please try again. Lack of financial literacy is a significant hinderance to economic mobility. There was an error submitting the form. The lack of financial literacy, even in some of the world’s most well-developed financial markets, is of acute concern and needs immediate attention. [1] Disclosure: As part of my consulting and training practice, I have delivered numerous bank, capital markets, and financial regulations courses at the New York Institute of Finance since 2006. A FINRA Foundation study released today shows that many Americans are better able to pay their bills, but others, like the young, struggle. Everything to … These facts send a clear message to those in charge of public policy and those with the desire to better their communities: the financial illiteracy epidemic must be addressed. Subscribe for free to get the latest breaking news and analysis sent to your inbox. Financial literacy meaning: Financial literacy refers to knowledge with regard to finance to make informed choices. Financial literacy statistics have made it abundantly clear that an epidemic of illiteracy is pervasive among the world. Without it, our financial decisions and the actions we take—or don’t take—lack a solid foundation for success. The National Financial Educators Council (NFEC) sought to find out how much money people estimated they had lost across the year due to a lack of financial knowledge. One of the most comprehensive financial education online programs, which is free, is the St. Louis Fed’ Economic Education Program. Papers and studies usually focus on general public or lower-educated group of people but we think that university educated people should not be out of scope of work done in the field of financial literacy. Basically it’s the capacity to have a solid financial plan. Take... Canada’s Financial Literacy Report Card. Financial Literacy empowers individuals to take charge of their finances. 43% of student loan borrowers are not making payments. The report states that low levels of financial literacy in insuring and comprehending risk are especially troubling. “And parents typically aren’t a great resource to bridge an education gap as many have never had that educational perspective when it comes to money, and even the most intelligent, high-profile individuals can still have woeful financial literacy.”. 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