According to a survey conducted last year by the TIAA Institute, U.S. adults, on average, correctly answered only 52% of the questions.
Money troubles ahead for Gen Z (born 1996-2010)
The survey found that financial literacy is notably lower among Gen Z compared with older generations. There is a BIG difference between perceived and actual knowledge, and most young adults do not seek help. The survey found that only 18%-28% seek help.
What does that mean??? It means that many people are going to learn about money decisions the hard & expensive way. It doesn’t help that only 21 states require personal finance in high school.
Challenges at the other end 25% of non-retirees have no retirement savings
This according to a recent survey conducted by the Federal Reserve
Although three-fourths of non-retired adults had at least some retirement savings, one-fourth indicated they did not have any at the time of the survey.
While most non-retired adults had some type of retirement savings, fewer than 4 in 10 thought their retirement saving was on track.
Passing on wealth to the next generation
Life insurance is one of the greatest ways to help the next generation have a financial future. Yet, the percent of households owning life insurance decreased from 72% in 1992 to 60% in 2016.
For Employers
The TIAA Institute survey shows a strong link between financial literacy and time spent on money management problems.
Workers with low financial literacy spend 6 hours of work time per week, on average, dealing with financial issues compared with 1 hour per week among workers with high financial literacy.
A primary motivation for employer-sponsored financial wellness programs is to decrease employee stress and also work time lost to employees dealing with personal finance issues.
The Bottom Line
Individuals with greater financial literacy spend less time at work contemplating money management problems.
Sources
https://www.tiaainstitute.org/publication/2020-tiaa-institute-gflec-personal-finance-index
The Fed – Publications: Report on the Economic Well-Being of U.S. Households (SHED) (federalreserve.gov)
https://www.federalreserve.gov/publications/2020-bulletin-changes-in-us-family-finances-from-2016-to-2019.htm
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