Study Finds Most Americans Don’t Understand Basic Finances

Among categories like fitness and wellness goals, one of the more common New Year’s resolutions has to do with finances. Americans are constantly looking for ways to save money in this economy, yet have a tough time keeping money in their wallets. One study, commissioned by GuideVine, points to the fact that most Americans just simply do not understand basic finance principles.

The study targeted 1,000 people over the age of 30, and found that many don’t know the basics about money management or personal finance. It’s important to understand the ins and outs of the financial world so you can better prepare for your own future, and for the future of your family. Basic things like how to balance a checkbook, how to file for taxes, and how to manage a monthly budget are crucial to having any kind of financial security or success.

Here’s the breakdown on what the study found:
-More than 1/3 of Americans don’t know what inflation is or how it works.
-Not even half could explain what a 401K is, or how to put money into one.
-Nearly a quarter said they can’t save money on a monthly basis.
-70% said they have a hard time sticking to budget.
-27% are worried they will never own a home.
-Many said they don’t believe a comfortable retirement is in the cards for them.

Do you fall into any of those categories? Then perhaps it’s time you up your financial literacy by researching the important things, or even taking an adult education course to better prepare yourself for a successful and bright future…that involves some financial security!

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3 years ago