Why Are So Many Americans Financially Dumb?

Yeah, we are a state of financial dummies.

1. Look at all the worthless get-rich strategies on the Net and TV. These advertisements be BECAUSE people are buying.

2. Watch the baffled expression on the cashier’s confront when you manus over extra coins AFTER the register shows your change.

3. Witness the people standing in line nightlong for the privilege of “25% savings.” Aren’t they waiting to SPEND money?

If you’re A non-believer, read these statistics:

1. According to fool.com, “68% PER cent of graduating high school seniors surveyed by the Jump$tart Alliance for Personal Financial Literacy failed a personal finance diagnostic test in 2002, compared with 44% World Health Organization failed in 1997.”

2. The U.S. Populace Interest Research Group states that “40 percent of college students are graduating with unmanageable degrees of student loan debt, and one-half of those have got an average credit card debt of $3000.”

3. Near retirement age babe baby boomers have got saved only 12% of what they believe they will need for retirement.

THE grounds WHY?

The U.S. Populace Interest Research Group attributes the debt issue to rising costs.

The deputy sheriff helper secretary for financial instruction at the Treasury section testified before the House, "The downstream, grownup problems of rising bankruptcy rates, low nest egg rates and abuse of credit can all be traced upstream to how our schools FAIL TO adequately set up children for their financial futures."

So far, the reasons why we we’re financially dense are because of rising costs and inadequate schooling. But clearly, these are not all the conducive factors…

There are other reasons, including…

1. Mathematics accomplishments are declining. This is the author’s observation. It’s based on instruction high school mathematics 30 old age ago compared to instruction college-level mathematics in 2003. Kids in the same country are less skilled than 30 old age ago.

2. Parents forget they are financial function models. They lose chances to develop their children money smarts.

CONSIDER THIS SOLUTION

Hate to sit the “family values train” because there are struggles with the conductor. And the author’s sentiment is an educated guess.

But, parents, see this…your children reflect your money habits, attitudes, and behavior. What are YOU instruction your children about money?