How much do you know about financial planning? If you feel as if you have some knowledge, where did you get this information: at school, at home, or on your own? Financial literacy is not a part of everyone’s upbringing or formal education and once you become a working adult, it is up to you to find out what you need to know.
Jack Markell, the governor of Delaware, wrote a blog post for Fortune stating, “It’s time to start educating Americans about personal finance…All Americans need to feel comfortable planning for retirement, managing their rent payments, and keeping up with their student loans.” Markell cited a study from the National Bureau of Economic Research that found that half of our population could not manage to get $2,000 in a month for emergencies like car repair or an unexpected medical issue and a Harris Interactive survey found that almost “a third of U.S. adults admit their lack of knowledge has led to poor financial decisions.”
Markell discusses how increased financial literacy could impact people’s lives. An understanding of credit scores and budgeting would help people manage their money better, even if they aren’t able to increase their income. He suggests that, “Government and business leaders must stop thinking of financial literacy as courses and brochures and start thinking about it as an essential service…”
While you may not be able to rely on the government or on your employer to help increase your understanding of finance, there is a lot you can do on your own to educate yourself about investing and managing money. And if you want expert guidance, you can turn to a Fee-Only financial advisor.
Claire Emory, MBA, CFP, CFA, of Clarity Financial Planning, LLC learned the importance of financial planning and literacy at an early age thanks to financially creative parents. She offers unbiased advise on all aspects of your financial life to assist in protecting your assets and guiding you towards the future you deserve.