|
|
Target Age |
|
|
|
|
|
|
|
Groups Served |
|
|
|
|
|
|
|
|
|
|
|
Special Programs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Literacy Statistics
Recent Financial Education Statistics: |
The recent economic slowdown has changed our economic environment, and the way people think about financial education. Unfortunately, current financial literacy statics have shown a decrease in the baseline financial knowledge levels. In fact, many of the financial education statics have shown a sharp reduction in practical financial literacy concepts.
When reviewing each of the financial education statistics shown below reflect on what it means to those affected by financial illiteracy. And if you are compelled, we invite you to join our International American Dream Movement. The American Dream Movement is a financial empowerment campaign designed to reduce the percentage of negative financial literacy statics and help people to achieve a state of financial well being. |
| |
People who viewed this page also visited: |
|
|
|
|
| |
* Please note. The financial literacy statistics shown below were gathered online. The NFEC has not verified any of these financial literacy statistics. It is important that you conduct your own due diligence and give proper reference to those organizations that provided the financial literacy statics shown below. |
| |
Recent Financial Education Statistics: |
|
Eighty-five percent of college graduates plan to move back home after graduating. (Twentysomething Inc. 2010 survey) The rate has risen from sixty-seven percent in 06’. (Jessica Dickler, CNN staff writer) |
|
|
|
Only fifty-nine percent of the young adults in Generation Y (ages eighteen to twenty-none) pay their bills on time every month. (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSN Money) |
|
|
|
Ten percent of American with mortgages reported being late or missing a mortgage payment in the last year and seven percent of adults are either getting calls from collectors or thinking about filing for bankruptcy. (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSN Money) |
|
|
|
Ten percent of American with mortgages reported being late or missing a mortgage payment in the last year and seven percent of adults are either getting calls from collectors or thinking about filing for bankruptcy. (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSN Money) |
|
|
|
Almost fifty percent of those who closely monitor their finances say that they learned about personal finance from their parents or at home more frequently. (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSN Money) |
|
|
|
About thirty-four percent of parents have taught their teen how to balance a checkbook, and less than that has explained how credit card interest and fees work and ninety-three percent American parents with teenagers report worrying that their children might make financial missteps such as: overspending or living beyond their means. (Charles Schwab’s 2008 “Parents & Money) |
|
|
|
Around sixty-nine percent of parents admit to feeling less prepared to give their teenager guidance about investing than they do having the ‘sex talk’ with them. (Charles Schwab’s 2008 “Parents & Money) |
|
|
|
Three out of every four Americans say they aren't saving enough. (2008 Pew Research Center) |
|
|
|
Fifty-four percent of college student respondents had overdrawn their bank account and eighty-one percent underestimated the amount of time it would take to pay off a credit card balance by a large margin. (Center for Economic and Entrepreneurial Literacy Survey) |
|
|
|
Forty percent will never gain a net worth in excess of ten thousand dollars. (American Dream Education Campaign) |
|
|
|
As you can see already from the financial education statistics shown, most experts are in agreement that people are suffering because they missed out on financial literacy training. Each of these studies point to the fact that most people never received a personal financial education course and the consequences can be challenging.
The financial literacy statistics listed below are also focused on the consequences as well as where youth expect to pick up these skill sets. The last grouping of statistics shown will get more into the benefits of offering money management courses. |
| |
|
Students between the ages fifteen to twenty-one report that they feel unprepared to face the complex world of the twenty-first Century (American Dream Education Campaign) |
|
|
|
Often times the educators themselves aren’t familiar with financial materials and are “afraid that students will ask questions that they don’t have the answers to, so they steer clear. (“Financially Illiterate: Schools not Teaching Personal Finance,” FoxNews.com, 06/18/02) |
|
|
|
Ten percent of American with mortgages reported being late or missing a mortgage payment in the last year and seven percent of adults are either getting calls from collectors or thinking about filing for bankruptcy. (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSN Money) |
|
|
|
The majorities of educators were not giving a financial education course and feel unprepared to teach the subject. Many lack the confidence to teach it to students. (“Taking Ownership of the Future,” Financial Literacy and Education Committee, 2006) |
|
|
|
Students and parents agree that college students are not well prepared to deal with the financial challenges that lie ahead. Less than one-quarter of students or about twenty four percent and only twenty percent of parents say students are prepared to deal with the financial challenges that await them in the real world. More than three-quarters of student, about seventy six percent, report that they wish they had more help preparing for their personal finances. (The Hartford Financial Services Group, Inc.) |
|
|
|
Around ninety seven percent of parents (or legal guardians) that have a child(ren) eighteen years of age or younger expect their oldest child to continue their schooling through college, and around seventy-nine percent of these same parents expect to pay for some or all of their child’s college education. (Wall Street Journal Online/Harris Interactive Personal Finance Poll) |
|
|
|
Eleven percent expects to pay less than five thousand dollars. Seventeen percent expects to pay five thousand dollars to just under ten thousand dollars and sixteen percent expect to pay over thirty grand. About twenty-six percent of parents who are expecting to pay for their kids college education have saved less than five thousand and thirty-two percent don’t have anything saved. (Wall Street Journal Online/Harris Interactive Personal Finance Poll) |
|
|
|
Over ninety two percent agree that it is important to have good money habits to be successful in life and believe it’s important to know how to manage money to live within your means. In addition the same percentage reports that it feels good to see their money grow. (Charles Schwab Foundation) |
|
|
|
Only twenty percent had saved over a thousand with older teens 16-18 significantly more likely than their younger counterparts. (Charles Schwab Foundation) |
|
|
|
A survey among working teenagers found that about fifty percent say when they get paid that they spend some of it and save the rest, while thirty percent said they deposit the money in an account. Fifty three percent of teens report saving for the future. (Charles Schwab Foundation) |
|
|
 |
The majority of college students say they pick up most of their personal financial education from their parents, but less than half of students said their parents make a consistent conscientious effort to teach them. About seventy percent of college students say their parents are their main source of information. (The Hartford Financial Services Group, Inc.) |
| |
|
|
Forty-nine percent of teens are ‘eager’ to learn more about money management. Only fourteen percent had taken a class on a financial literacy topic and over a third want to learn money skills from their parents. (Capital One) |
| |
|
|
Only eighteen percent of parents are talking about school budgeting and seventy nine percent of parents see themselves as positive money role models for their kids. Only a small percentage of parents are taking advantage of the everyday learning opportunities about money. (Capital One) |
| |
|
|
Almost one-third of college students, when reflecting back on their freshman year, admit that they were not very well prepared for personal money management on campus. Twenty percent of students claim to have been very well prepared. (KeyBank and conducted by Harris Interactive) |
| |
|
|
Three out of four admit to having made mistakes with their money when they arrived on campus. (KeyBank and conducted by Harris Interactive) |
| |
|
|
When asked how closely they tracked where their money was being spent, fewer than forty percent said they track their spending very closely. (KeyBank and conducted by Harris Interactive) |
| |
|
|
About fourteen percent of American adults mentioned their company's retirement plan when asked about ways they save. (Harris Interactive for the American Institute of Certified Public Accountant) |
|
| |
Although those financial literacy statistics paint a dismal picture of what is going on with financial education. There are some financial education statistics that do give us hope. |
| |
The fact is that the financial literacy statistics reflect what happens when you never teach kids about money. The overwhelming majority of students never received financial education, and the financial literacy statistics shows the results of this omission. |
| |
The financial literacy statistics in the next section are more positive in nature and reflect what can happen when a practical financial education is delivered. |
| |
|
Research shows that individuals graduating from high schools in states that require personal finance education have higher savings rates and net worth as a percentage of their earnings than individuals graduating from high schools in states where financial education is not mandated. (“Integrating Financial Education into School Curricula,” The Department of the Treasury) |
|
|
|
Eighty seven percent of teens report their parents are their main source of financial education. (Charles Schwab Foundation) |
|
|
|
Research indicates that people who have had financial education participate more often in retirement programs, make larger contributions to the program and have a much higher savings rate than others. (“Integrating Financial Education into School Curricula,” The Department of the Treasury) |
|
|
|
We need a completely different set of skills for kids to operate well in what we call a ‘Third Wave,’ or knowledge-based, economy. We must therefore, radically redesign our conception [of schools].” (Alvin Toffler) |
|
|
|
Eighty nine percent of people are in agreement that saving and investing can help you achieve the freedom to do what you want in life. (Charles Schwab Foundation) |
|
|
|
About two out of three parents surveyed say they definitely see personal finance education as their responsibility and consistently make the effort to teach their children about it, compared to the only forty one percent of students who say their parents did. (The Hartford Financial Services Group, Inc.) |
|
|
|
Teenagers that reported learning about managing savings and checking accounts were more likely to report having opened both types of accounts, and they were more likely to save, have a budget and money to make purchases. (Boys & Girls Clubs of America and the Charles Schwab Foundation) |
|
|
|
Youth that reported learning to create and maintain a budget were more likely to report actually developing one. (Boys & Girls Clubs of America and the Charles Schwab Foundation) |
| |
|
Although this page is dedicated to financial literacy statistics, we invite you to look outside what is presented and think about what these financial education statistics truly mean. For example, Walter Updegrave, senior editor of Money magazine, points out that nearly half of workers had saved less than fifty grand for retirement, and 15 percent had not saved a single cent. Looking beyond the financial literacy statistic, consider what this means to the 65% of people he referred to. The reality for many is that their senior years will not be so golden and a majority of those will struggle financially.
* Please note all these financial literacy statistics were gathered online. The NFEC has no verified any of these financial literacy statistics. It is important that you conduct your own research, due diligence and give proper references to those organizations that provided the financial literacy statics shown above. |
| |
Evaluating Financial Literacy Statistics |
Erin Mitchell, Student intern for the National Financial Educators Council
Looking at the financial education statics it is obvious to me that a lot of people are suffering due to financial illiteracy. The financial literacy statistics clearly show a lack of even the most basic knowledge. Many people wonder why so many are suffering from money problems.
The financial literacy statistics are a crystal ball into the future. Seeing that the majority of college students don’t understand the importance of paying bills on time is a financial literacy statistic that says to me that a lot of those students will have credit problems. Seeing the financial education statistic that states that most do not have a set savings plan shows me that there will probably be a lot of people not able to retire.
I think it’s obvious, that, unless we change these negative financial literacy statistics into positive financial education statistics that many people will still suffer from money problems.
Although not an education expert, if money issues are causing people this much trouble – shouldn’t they teach this somewhere? The vast majority of all the financial literacy statistics point to the lack of a financial education as the primary cause of many of the problems. Shouldn’t we address that instead of billions and trillions into the results of lacking a financial education?
The financial education statistics and trends all lead us to one conclusion. That a practical financial education will take those financial literacy statistics and turn them into something we can all be proud of. How much would it help if we took the 50% of people who have less than $50k saved for retirement, and we could reduce that to 25%? That change in that financial literacy statistic alone would improve the strength of this country and the world.
As I watched an economist on CNBC discuss leading indicators, I thought how financial literacy statistics can be a leading indicator to the future economic strength of individuals, communities, organizations and even the country and world.
First let me address the individuals. The statistics from the American Dream Project that shows only 40% of people that will never gain a net worth in excess of $10,000 has some real consequences for that person. With the elimination of social security and pensions this means to the 40% that they will either work their entire life, be supported by family or live off public assistance. In any case, they will struggle with their finances.
That financial literacy statistic will affect the community and company they are with. As money is a leading cause of stress and unhealthy coping behaviors the company they are working with will likely have a less productive workforce. If the company had a workplace financial education program some of the issues may be mitigated; however, if not that company will likely lose productivity from this employee. Looking at the community the likelihood of this person needing public assistance greatly increases. If that person needs public assistance where does that money come from?
Taking this financial literacy statistics out further and you can see how it impacts the country and world as a whole. The US is a consumption based economy and if people cannot afford to purchase those items they use to, and you can see this financial literacy statistic will reduce the country’s GDP. With the global economy we are now in this financial education statistic goes even further to show the world will be impacted by the lack of personal financial education.
It is critical that we all begin working to improve the financial literacy statistics and empower people with a financial education. Making members of our community financially knowledgeable will improve the world as a whole. |
| |
|
Get Exclusive, Celebrity, Financial Literacy Videos and Immediate Access to our Content Library. |
|
Solution Center |
Our solution experts will design programs that best meet your needs. |
|
|
Partners, Sponsors & Media |
|
|
 |
