Research, Statistics & Quotes
Nearly half of Americans say their expenses are equal to or greater than their income. And for those 18 to 25 the percentage is over half, up to 54%.
People tend to respond to immediate stimuli without reflection – called the “fast brain” – and this can have major ramifications for their finances.
“A budget tells us what we can afford but doesn’t keep us from buying it.”
William Feather, American Publisher
“It takes more than financial literacy to truly help people work toward a stronger financial situation. Attention must also be placed on their behaviors, self-efficacy, and helping them develop systems to truly make a positive impact.”
Vince Shorb, CEO, National Financial Educators Council
NFEC Position Statement
Breaking financial habits that take individuals away from their financial goals lies at the foundation of achieving longer-term goals. Many people will have to work their way through the Stages of Change hierarchy to break these habits. This process starts with understanding where change is needed, taking personal responsibility for making change, and taking consistent action.
It’s good to know personal finance concepts (i.e. financial literacy); but without molding positive behaviors or modifying problematic behaviors, topic knowledge will have less positive impact. The NFEC’s material focuses on helping people work through behaviors that may be holding them back. Our highly-valued champions and advocates for financial education are to be commended for their commitment to promoting this mission; all our educators receive detailed training on how to mold and modify financial behaviors. Financial behavior is also an instrumental component of all our educational resources.