Financial Situation – Initial Financial Decisions Impact Finances

Many people get off on the wrong foot, making early mistakes that can have major impact well into the future. They are forced to focus on financial recovery, instead of planning and working toward long-term financial security.

Early mistakes can haunt people across their entire lives. Getting into debt and not saving for the future are the most common issues faced by individuals new to financial independence. Other risk factors like credit mistakes, underinsurance, and tax issues are some of the additional ways people get off track early in life. If these issues aren’t addressed, it can spell long-term financial problems.

Because of the severity of making financial mistakes, care must be taken to help young adults avoid decisions that take them away from their long-term financial goals.

Research, Statistics & Quotes

By age 30, the study estimates Gen Z across the U.S. will have spent about $145,000 on rent.

Yahoo! Finance

11.3 percent of U.S. adults were without health insurance coverage in the first quarter.

CNBC

44% of Americans do not have enough savings to cover a $1,000 emergency.

CNBC

“Many financial problems people face today started when they were young and making their first few financial decisions. Taking on too much debt, failing to start investing early, and lack of planning can take decades to recover from and puts their long-term financial security at risk.”

Vince Shorb, CEO, National Financial Educator Council

NFEC Position Statement

People are entering the world of finance lacking knowledge and a support team, and having pre-existing financial behaviors that often are not in alignment with their long-term goals. These problems cause many people to make initial financial mistakes that can plague them throughout their adult lives.

At the NFEC, our mission is to increase access to high-quality financial education that focuses on behaviors, systemization, and finding professionals to assist people in building a strong financial foundation. For those already experiencing financial problems, this requires emphasizing financial recovery first, then moving on to building their financial foundations. Here we would like to express our appreciation for the efforts of our financial education champions, who collaborate with us to make the financial literacy movement a reality.