New study finds one in three Americans can't pass a financial literacy test
New research shows that Americans are failing in financial literacy.
A nationwide study shows one in three Americans are financially illiterate, meaning uneducated, with basic financial concepts like budgeting, managing credit and making basic financial decisions.
These findings come from the National Capability Study by the FINRA Investor Education Foundation, which surveyed 27,564 Americans, from June through October of last year. But experts have tips to offer to help better your financial future.
Most banks have financial resources like seminars, or work with you personally to help you understand basic finance. The FINRA foundation has a free financial literary quiz so consumers can test their knowledge. The results page lists correct answers and explanations about all financial topics, so every consumer has a grasp on what to do.
Reading financial news also keeps you in the loop on current events and how they can affect your wallet.
When it comes to budgeting, no more than 50% of your income should go to your essentials. Then divide the rest into financial priorities, like retirement and personal spending for entertainment purposes. Keeping a record of all of your spending for one month can help you get a head start on creating a budget, so you know just how much you’re spending on what from month to month.