At the core of my work (Financial Literacy manual) is the notion that early, effective communication regarding finance, and the adoption and practice of healthy financial techniques, is an essential tool in the intellectual development of children. In the end, it will be these early conversations that will assist children in becoming financially sound adults. Unfortunately, however, there are a multitude of events that result in such conversations taking a back seat. These events include, but are not limited to: a lack of access to resources (classes, books, the Internet, pamphlets, and more), specifically within Black, brown, and impoverished communities; parents/guardians (themselves) lacking pertinent financial information to disseminate; and many families choosing to spend time tackling urgent matters rather than engaging in open discussions surrounding finance. As a result, many have journeyed (and will continue to journey) through life ill-equipped to properly manage money (budgeting, diversifying, investing, and most importantly saving). But, as of late, there have been major pushes to prevent financial illiteracy in adulthood, such as incorporating Financial Literacy classes into high school curriculums.
Financial Literacy is, in most high schools throughout the United States, a required course taken during one's senior year. The course is seen as an answer to relentless debates from educators and policymakers regarding the dangers of prolonged financial readiness. Therefore, if a child has not built a formidable relationship with money prior, financial literacy courses will (hopefully) provide students with the opportunity to learn about personal financial planning, how economics, politics, and social tenets impact both domestic and global economies. Additionally, such courses assist students in building a financial lexicon. Although intervention at the secondary (high school) level has yielded positive results, research conducted regarding adults, finance, and saving as a whole, produced statistics that are frightful. According to the National Financial Educators Council (NFEC), adults age 35 to 54 admitted that they had once turned down a job or promotion as a result of their credit or financial background. Of the 1,165 participants surveyed, 5.2% stated that they had been turned down for a job due to their financial background. Likewise, according to the NFEC, adults age 35 to 54 (1,100 surveyed, 26.3% tallied) stated that their current or potential employer had checked their credit history as a condition of their hiring or promotion. Thus, it can be concluded from the findings that a unstable financial history has hindered the professional lives of over 2,000 individuals. Sadly, a majority of Americans not surveyed have financial lives that mirror these findings. Furthermore, when the NFEC conducted additional research, specifically related to adults and their saving habits, they discovered that nearly half of all workers saved less than $50,000 for retirement, and 15% had not begun saving for retirement. While there are 65% of workers who have started to save, the reality is that many senior citizens will struggle financially to stay afloat. In examining what current millennials are contributing financially to their future, a Wells Fargo study concluded that 54% of millennials fear falling into crippling debt and 39% of millennials worry about their financial future at least once a week. As a millennial, I can truthfully disclose that I, too, worry about my financial future; however, with my vast knowledge and financial know-how, I am doggedly working to avoid falling into a financial pit of despair. Likewise, I am doggedly working to bolster your confidence, know-how, and preparedness as well. It is my hope that the above facts and statistics helped shed a light on the severe effects of financial illiteracy.
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WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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