10 Financial Literacy Statistics That May Stagger You!
Poor money habits devastate dreams, goals, financial security, financial stability and financial freedom.
Conversely, great money habits automatically have us making better personal finance choices.
They automatically advance dreams, goals, financial security, financial stability and financial freedom.
Take a look at the 10 financial literacy statistics below. Let us know:
(1) Which one financial literacy statistic staggers you the most?
(2) If there is one financial literacy statistic you want the children in your life to avoid most:
(a) establishing the wrong money habits and attitudes early in life;
(b) having no savings or emergency funds
(c) living paycheck to paycheck
(d) not having or using a budget
(e) a lack of confidence in saving and personal finance choices
(f) being financially illiterate
(g) not receiving personal finance education at school
(h) having financial accounts but not understanding them
(i) understanding less about money than peers in other countries
(j) carrying a monthly credit card balance and paying interest on it.
Financial Literacy Statistics: Number One - Money Habits
Adult money habits and attitudes are set by the age of seven. Source: Cambridge University
Food For Thought
Have you ever asked yourself:
WHERE do you and your children's money habits and attitudes come from?
ARE they producing or will they produce the results I want?
ARE they building or will they build my wealth, my child's wealth or someone else's?
HOW can I take charge of and establish money habits and attitudes in myself and my children that will grow our financial security, financial stability, financial freedom, financial health and self-sufficiency?
TODAY is the best day to take charge of your financial wellness.
TODAY is the best day to begin building or adding to the personal finance knowledge and capability of you and your children.
DO IT on a step by step basis, one step at a time!
“People’s habits are not innate, but learned from what their family modeled for them.” Dr. Saunia Ahmad, Clinical Psychologist and Director of the Toronto Psychology Clinic. Source: CIBC
Read a child a Sammy story or listen to a Sammy song!
Financial Literacy Statistics: Number Two - An Emergency Fund
Two in three families lack an emergency fund. Source: JP Morgan Chase
Food For Thought
A core tenet of both the Girl and Boy Scouts is to "be prepared."
I don't think either organization arrived at this conclusion accidentally. It seems to me, it is a well thought, time-tested, wise determination.
A part of being prepared means, you must establish an emergency fund.
If you want to produce and want your children to produce more financial security and stability in your lives establishing an emergency fund is essential.
Unplanned events, emergencies, can be planned for.
Expecting unexpected events to occur is intelligent. It is part of the foundation of any sensible and sustainable financial plan to create a future you want.
Take "baby" steps to consistently and incrementally build to the level of emergency security you desire or think prudent. For many of us, that means automating the process.
Be sure your "emergency fund" is separately listed and its own line item in your written budget, the same as you would do for groceries and other items.
Keep in mind, where you rank order, prioritize and list your "emergency fund" in your budget may make a substantive difference as to whether you reach your "emergency fund" goal.
Money doesn't make you immune to the little speed bumps in life, but in can easily turn an emergency into an inconvenience. Dave Ramsey, Personal Finance Author
Financial Literacy Statistics: Number Three - Living Paycheck to Paycheck
61% of adults live paycheck to paycheck. Source: CNBC
Food For Thought
Often in can be difficult to look into reality. The reality for the overwhelmingly vast majority of us is: we will start our adult working life in a "paycheck to paycheck" living mode.
The goal, IF, one wants to create more financial wellness in their lives, is to "intentionally" inch, crawl, scratch and scrimp our way out of this condition.
The good news is, thousands upon thousands of us, if not millions, from every economic demographic, have done it before. That means if you are looking for a roadmap and recipe to improve and perhaps transcend this condition, it is available.
Just ask! This is a challenge that can be conquered.
Take a read of Sharita Humphrey's story - from homelessness to Certified Financial Education Instructor (CFEI) to sought after personal finance speaker.
Or, check out the nonprofit SaverLife. They are successfully helping to create new roadmaps and recipes to financial wellness for low income families.
Story = Recipe = Roadmap!
If you want good results; results you intend; results you are willing to inch, crawl, scratch and scrimp your way into; in an accelerated and efficient manner, have a plan, follow a map or a recipe!!!
"When I was young people lived paycheck to paycheck. Today, it seems like they live from credit card payment to credit card payment." Robert Kiyosaki, Author, Rich Dad, Poor Dad
Financial Literacy Statistics: Number Four - Budgeting
Three in five adults don’t keep a budget. Source: U.S. Bank Survey
Food For Thought
Perplexing!
A budget is a proven, field-tested tool or "ingredient" to produce predictable success with money.
Imagine chicken soup without chicken. Money without a budget is money, security and freedom soon to be in the control of another person or enterprise.
The most successful enterprises in the world use budgets. Individuals as well.
There are limited to no barriers to establishing a budget and leveraging this strategy and step to having more success with money.
So, have and follow a budget. Furthermore, teach your kids to budget. Have them plan their pennies and give each one a purpose!
Planned pennies with a purpose, lead to people living more fulfilled lives!
Unplanned pennies without a purpose, often lead to devastating dreams of winning the lottery without the requisite habits and skills to manage, maintain and multiply the unearned proceeds.
Take a read of "budgeting" Bobbi Olson's story to understand what is possible. See how a budget helped her bounce back from debt and take more control of her present and future self.
“A budget is more than just a series of numbers on a page; it is an embodiment of our values.” Barack Obama, Former President, U.S.A.
Financial Literacy Statistics: Number Five - Saving
Less than one in five adults is confident in savings. Source: National Foundation for Credit Card Counseling
Food for Thought
Nothing builds confidence in saving, like making it a habit and being able to respond to both emergencies and opportunities when they arise.
In today's world, it is easier than ever before to access the wisdom and knowledge of the greatest minds both present and past on any topic.
If you are not accessing this wisdom and knowledge by reading and listening you are placing yourself and your children at a disadvantage.
This is my favorite quote on saving:
"The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind." T.T. Munger
Sammy Rabbit and I love everything Benjamin Franklin has to say about saving and managing money like:
"Remember that Money is of a prolific generating Nature. Money can beget Money, and its Offspring can beget more, and so on." Benjamin Franklin
Here is one of Warren Buffet's thoughts on saving and a "recipe" for increased financial health and wellness:
“Don't save what is left after spending; spend what is left after saving”. Warren Buffett
The above wisdom is timeless. And notice, how consistent their messaging and recipes are!
Financial Literacy Statistics: Number Six - Financial Knowledge
57 percent of US adults are financially literate. Source: S&P Global Financial Literacy Survey
Food for Thought
“I want to live in a financially literate community. I would love to see children learning about the importance of investing and saving. People need to know about financial literacy because it’s lifesaving.” Mellody Hobson, CEO & President, Ariel Investments
Financial Literacy Statistics: Number Seven - Sources of Education
Only 21 of 50 states require a personal finance course in their high school. Source: Council for Economic Education - as of 10-5-21
Food for Thought
"I don't think there are any students who should not be exposed to a basic financial literacy course." Ben Bernanke, Former Chair, Federal Reserve
Provide your community and network with co-branded Sammy stories, songs & activities!
Financial Literacy Statistics: Number Eight - Account Owners
Account owners can be financially illiterate too. Source: S&P Global Financial Literacy Survey
Food for Thought
"I have never let my schooling interfere with my education." Popularly attributed to Mark Twain but apparently from Grant Allen. Source: Mark Twain Studies dot com
Enroll 1 Child, Class or School Today!
Financial Literacy Statistics: Number Nine - Measuring Teenagers
American teens score lower on financial literacy tests than their foreign peers. Source: Organisation for Economic Cooperation and Development
Food for Thought
“Like any other form of learning, financial education should ideally start at an early age. This process should also continue throughout life as it helps people gain the necessary skills required to make sound financial decisions.” Alan Greenspan, Former Chair, Federal Reserve
Financial Literacy Statistics: Number Ten - Paying Interest on Credit Card Balances
55% of people carry a credit card balance from month to month. 15% of Americans have been in credit card debt for 15 years. The average credit card APR is 16.30%. Sources: Yahoo and Federal Reserve
Food for Thought
Paying interest on credit card balances results in:
(1) Surrendering the opportunity to build your financial wealth and contributing the financial wealth of others.
(2) Promising to give additional portions of your time and energy to pay extra for a good or service that very likely has already been consumed or no longer being utilized.
Personal finance and investing expert, Paul Merriman, writes persuasively about the power of compound interest in his articles titled:
(1) How time can turn $3,000 into $50 million
(2) Make your kids rich for a $1 a day!
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.” Attributed to Albert Einstein
Let's collaborate on one financial literacy project!
Summary: 10 Staggering Financial Literacy Statistics
| 1 | Adult money habits and attitudes are set by the age of seven. Source: Cambridge University |
| 2 | Two in three families lack an emergency fund. Source: JP Morgan Chase |
| 3 | 61% of adults live paycheck to paycheck. Source: CNBC |
| 4 | Three in five adults don’t keep a budget. Source: U.S. Bank Survey |
| 5 | Less than one in five adults is confident in savings. Source: National Foundation for Credit Card Counseling |
| 6 | 57 percent of US adults are financially literate. Source: S&P Global Financial Literacy Survey |
| 7 | Only 21 of 50 states require a personal finance course in their high school. Source: Council for Economic Education - as of 10-5-21 |
| 8 | Account owners can be financially illiterate too. Source: S&P Global Financial Literacy Survey |
| 9 | American teens score lower on financial literacy tests than their foreign peers. Source: Organisation for Economic Cooperation and Development |
| 10 | 55% of people carry a credit card balance from month to month. 15% of Americans have been in credit card debt for 15 years. The average credit card APR is 16.30%. Sources: Yahoo and Federal Reserve |
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