These are some worrisome facts about American financial literacy or the lack of it thereof. This blog does not provide legal, financial, accounting or tax advice. If more states introduced this, In a 2015 NFCS study, the average number of correct answers of six questions among Americans was 3.16. The. Financial Aid and Scholarships is happy to provide students with helpful resources in the areas of personal budgets, saving money, debt and credit management, and loan repayment. We’re a one-stop shop, providing parents with a step-by-step guide to teaching financial literacy skills. West Virginia and North Dakota complete the top-three list with their rates of 72.55% and 70%, respectively. Financial education for kids begins at home. , the situation is opposite among the major emerging economies. The average score up to date is 67.94%, and the percentage of passing scores is 58.68%. 50% of adults worldwide understand inflation and interest rates. In 2018, it was a bit higher at 66.33%. 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. show that 62% of account holders don’t have relevant money-handling knowledge. Every household in the United States with a credit card carries an average of $8,398 in credit card debt. According to a 2020 Mint data study, West Virginia ranked as the least financially literate state while Michigan ranked the most financially literate. About one-third of adults worldwide are financially literate. The U.S. represents about 40% of the total global stock market capitalization. Meaning, millennials need financial literacy more than any other generation to handle their money smartly and get out of debt. In this state, the rate of economic literacy among young residents is 82.08%, as youth financial literacy statistics reveal. Globally, about 25% of the poorest 40% are financially literate, according to financial illiteracy stats. These figures show that this generation knows the fundamentals but isn’t familiar with the other financial literacy cornerstones. 29.2% of Americans don’t save any of their income. Financially literate people know how to handle their assets, have healthy saving habits, and invest. Approximately 31% of all and 44% of college-educated millennials carry more than one source of long-term debt. European countries with an average knowledge of how to handle money among adults are Greece (45%), Spain (49%), and Italy (37%). Below, we will reveal 21 worrying stats and answer the most common queries on the topic. Figures differ drastically when we compare understanding between advanced and emerging economies. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. Americans owe a collective $1.54 trillion in student debt. Global youth financial literacy statistics show that people aged 15-35 are the most financially literate with a 35% rate. So does access. What is inflation, how to invest your money, and why do saving goals matter? Nearly two-thirds (63.8%) were educated about spending money responsibly, such as the difference between needs and wants. The Bureau of Labor Statistics found that total employment increased by 4.9 million to 142.2 million in June 2020. Per the financial illiteracy statistics, the situation is opposite among the major emerging economies. Those who know how to make smart money decisions are better equipped to grow their wealth. Although the Internet is an endless source of information, it’s not easy to sort through it all or verify accuracy. The difference is even more significant in advanced economies where about 45% of the poorest 40% are literate compared to 60% of the richest 60%. Financial planning is indeed important for one to achieve financial success. . Because of the continuous rise of college costs, financial literacy programs have become necessary for college students to handle their finances responsibly, like their student loan debts, among others. The content on this blog is "as is" and carries no warranties. One in four parents reported that they never or almost never talk to their kids about household finances. 66% of millennials don’t feel on track when it comes to saving for retirement, mostly due to the burden of housing costs. Besides being critical for economic success. Although experts are doubtful that the rise in people saving due to the pandemic will last, it’s encouraging to see how people have reprioritized budgeting. The concept of earning, including gross versus net pay, benefits, and taxes, was taught to 70% of high school students. When participating in any of the financial literacy classes. Over 35% of the wealthiest 60%, by contrast, are well-aware of how to handle personal assets. Young adults who receive financial educationare less likely to carry credit card debt, and more likely to apply to and receive grants and financial … Being financially literate is crucial to establish a strong foundation for handling money. On an individual level, the benefits are clear. West Virginia and North Dakota complete the top-three list with their rates of 72.55% and 70%, respectively. Third-party blogger may have received compensation for their time and services. Globally, 60% of all people hold an account, and only about 38% of them are financially literate. Financial literacy is having the ability to understand how to make smart money decisions. As of July 2019, 28% of U.S. adults had no emergency savings. Financial literacy high school statistics, show that the average score among Americans aged 15-18 in 2019 was 64.94%. These financial literacy college students statistics show that a university degree can help in terms of getting a better job. 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