By Arlenys Tabare
With the cost of living rapidly increasing, knowing how to manage household income, avoiding unnecessary debt, saving, and improving credit histories are not only good decisions, but are also a big plus. Building financial stability takes years, but having a good financial education would go a long way in the process.
However, a study recently conducted by the International Center of Excellence in Financial Literacy at Stanford University and TIAA (the Teachers Insurance and Annuity Association of America), one of the largest financial services organizations in the United States, revealed that The percentage of Americans with basic financial literacy has fallen over the past 10 years to its lowest level.
For Surya Kolluri, director of the TIAA Institute, the results of this research were alarming. “Those with the lowest level of financial literacy are four times more likely to have trouble making ends meet,” he told CBS.
The report indicated that during the survey only 47% of questions on basic finances were answered; This represents a lower figure than 52% in 2020, with Generation Z having the lowest score (38%) compared to toddler boomers (54%).
The reason for traditional’s drop in scoring is partly due to the lack of true and reliable information, combined with financial difficulties that many homes already face. However, the lack of financial education is generating greater real concern, as households are less prepared to take on emergency expenses, debt management or retirement savings.
Regarding generation Z, the specialist commented that many young people are currently feeling financial pressures with large student debts, the tight labor market and the feeling that acquiring a property is unattainable.
For his part, Matt Schulz, chief consumer finance analyst at LendingTree, commented that although much has changed in the last decade or more in the financial services sector, “the fundamentals of financial knowledge have not changed. “The fact that people are doing worse and worse on these types of tests is, without a doubt, worrying.”said.
Keep reading:
- Are you thinking of moving? These are the 5 most affordable cities in the US to buy a home, according to Wallethub
- Study reveals cities where auto loan debt continues to rise
- Latinos see the American Dream almost unattainable: 83% blame Trump and Congress
