Financial Problems & Consequences

To become an effective advocate, it’s important for you to be well-versed in the problems people can experience if they lack capability to make qualified financial decisions. There is a vast array of such problems and they can be severe. Understanding this information will help you better communicate with others about the need for financial competence.

In This Section We Will Cover

Scope of the Problem

From the data, you will learn that more than 85% of our population is not in a financially secure position – the financial illiteracy problem affects almost everyone and has moved well beyond epidemic proportions.

Severity of Consequences

Lack of financial knowledge has severe consequences for many people. Financial problems are a core issue for many people – having profound impact on their relationships, emotional states, and enjoyment of life. Money issues have been consistently ranked as the top stressor in people’s lives.

Impact on Loved Ones

The impact of financial problems is not limited to the individual – a person’s financial problems often affect the lives of that person’s family, peers, and loved ones. The consequences of financial issues can range from missing out on good times with friends, to family arguments, to divorce.

Impact on the Community

Individuals’ financial problems also spill over into their communities, influencing the lives of others who live in their communities and countries.