Financial Literacy tips and facts
- Teach your child the concept that people earn money at their jobs. Discuss what you do at work and then ask him/her what she might like to be when she's older. If she wants to be a veterinarian, put her in charge of walking, bathing and feeding the dog, and pay her for the tasks.
- Even though most banking is done online these days, it's important to physically take your children to the bank, so they can see where your money is going -- and that it's in good hands.
- When you take children to the store with you, talk through purchases with them. Explain to them why you chose one product over another.
- Put a few household bills in a stack; talk to your children about what happens when you add them all up and why these expenses are necessary. This will help them to understand the concept of bill-paying and how much money is require to run a household.
- Start to show your child how to stretch a dollar. If you buy an item on sale, put the dollars/coins that equal the full purchase price on the kitchen table and then take away an amount to show how much money you saved. next talk about the importance of saving for the future or the unexpected.
- Teach children the importance of setting a budget in order to save for things you want to buy in the future. Children as young as three can start receiving an allowance, and with that allowance comes the idea of budgeting and saving.
- Have you ever listed all of the expenses you pay every month to keep a household going? Put a few stubs in a stack and do a little show-and-tell. Talk about what happens when you add them up. This will help your children to understand the concept of bill-paying and how much money is required to run a household.
- Teach your child the difference between wants and needs. Kids may "want" many things, but "need" far less. Discerning between needs and wants will help them sort through the many options they will face in life. Evaluating needs and wants- on both a small and large scale- helps adults control expenses. Money that would otherwise be spent on "wants" can be put in long-term saving, investments or returement. These are values that secure a future.
- Financial literacy is important, no matter what age group you belong to, whether you are just starting 5th grade, funding your college education, planning for a family or retiring. Financial literacy will help you achieve your goals regardless of what you choose them to be.
- Try to develop good financial habits. Just paying attention to how you spend your money will probably lead to some ideas about how to save more. Over time, your savins can make a large difference in your future financial lifestyle.
- According to a 2016 National Endowment for Financial Education® poll, Americans cited the most significant financial setbacks they experienced in 2016 as transportation issues (23%), housing repairs/maintenance (20%), and medical care for an injury/illness (18%).
- A 2016 National Endowment for Financial Education® poll found that nearly half (48%) of Americans admit that they are living paycheck to paycheck.
- According to the Council for Economic Education (CEE)'s 2016 Survey of the States, while more states are implementing standards in personal finance, just 17 states require high school students to take a course in personal finance.
- According to the Council for Economic Education (CEE)'s 2016 Survey of the States, only 20 states require high school students to take a course in economics – that's less than half the country and two fewer states than in 2014.
- According to a study by the Global Financial Literacy Excellence Center (GFLEC) at George Washington University, only 24% of millenials demonstrated basic financial literacy, making them the age group with the lowest level of financial literacy
- 2/3 of all Millennials, and 80% of college educated Millennials, carry at least one source of outstanding long-term debt
- According to a study by the Global Financial Literacy Excellence Center (GFLEC) at George Washington University, nearly 50% of millenials don't believe they could come up with $2,000 if an unexpected need arose within the next month, nearly 30% are overdrawing on their checking accounts and 53% carried over a credit card balance in the last 12 months.
- According to a PwC study regarding financial education, 65% of teachers worry parents/guardians aren't doing their part to provide some financial education at home.
- 84% of college students have credit cards; 50% of them have more than four cards.
- The 18-25 age range is the fastest-growing segment for bankruptcy.
- Financial issues are cited most frequently as the reason why college students drop out of school.
- The average Class of 2016 graduate has $37,172 in student loan debt, up six percent from 2015.
- It is predicted that the millennial generation will be the first generation worse off financially than their parents
- Roughly 70% of students graduating from four-year colleges will have student loan debt
- In 2012, one third of US adults (more than 77 million) acknowledged that they did not pay their bills on time.
- According to a 2016 study, nearly 2/3 of Americans can't calculate interest payments correctly.
- 62% of teens think cash is the most common form of payment when purchasing something in a store
- Nearly half of teens don't think they will make $35K in their first job.
- Teens believe the average income tax rate exceeds 40 percent.
- 70% of teens don't know what a 401K is.
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