Further, these debt obligations heavily impact Millennials’ views of financial success. Approximately 14%, for example, made a hardship withdrawal from their savings account. These have low rates, with the average being only 28%. show that 62% of account holders donât have relevant money-handling knowledge. Learning to save helps with their long term finance and gives them a grounding in financial literacy. The U.S. median household income was $63,179 in 2018. Managing your money is a personal skill that benefits you throughout your life – and not one that everybody learns. People over 65 are the least familiar with handling their money â 25%. States with the lowest knowledge on money issues are Arkansas (50.44%), Idaho (51.67%), and Mississippi (51.82%). Northern EU countries have the highest understanding of money issues, as indicated by the latest financial literacy trends. More than 70% (72.1%) were taught about saving money, checking accounts, and meeting long-term saving goals, according to. These facts send a clear message to those in charge of public policy and those with the desire to better their communities: the financial illiteracy epidemic must be addressed. Here, we must mention India and South Africa with knowledge rates of 24% and 42%, respectively. Fifty-five percent of Americans give themselves a grade of A or B on their personal finance knowledge. Every household in the United States with a credit card carries an average of $8,398 in credit card debt. A report on the results of a financial literacy exam found that high school seniors scored on average 48 percent correct, showing a strong need for more comprehensive financial education for youth in high school. There, nearly 60% of men got 3 out of 4 topics correct, while only 50% of women did the same. Their average score to date is 78.23%, higher than any other age group. This blog does not provide legal, financial, accounting or tax advice. The concept, however, doesnât stop there. And don’t be misled by the word literacy. Here are a few more financial literacy facts that underscore this need: 58% was the average score on a recent national financial literacy test among 1,309 teens and young adults. All these lead to an improved financial situation and prevent debt generation. Understanding the basic concepts of handling assets has many benefits, including wealth growth and smart investments. is one of the reasons millennials make bad money decisions. 54% of student loan holders didn’t attempt to figure out their future monthly payments before taking out their loans. Besides being critical for economic success, financial literacy statistics show that most people lack appropriate knowledge. About 35% of men got 3 out of 4 answers correct, compared to about 30% of women. Their average rate of correct answers was 2.81, 2.89, 2.91, 2.97, and 2.97, respectively. About 34% of millennials have an annual household income of at least $75,000 and worry whether theyâll be able to repay college loans. Minnesota has the highest literacy rate on money issues of 82.08%. If youâd like to learn more about this vital concept, read further. When participating in any of the financial literacy classes. Americans, alongside people from other countries, must work on their financial literacy. The lowest median household income of around $42,000 per year is found in Alabama. Take a look at the current state of debt statistics. Jul 6, 2020 - Fun #money facts to share. When asked if their savings, investments, and Social Security benefits would be enough to fund their retirement, 59% of Americans said it was âsomewhat likelyâ to ânot at all likelyâ. See more ideas about facts, money, financial literacy. Americans over 51 years old represent the most financially literate age group. In a time when unemployment is common, people are turning to additional income streams and joining the gig economy to capitalize on flexible jobs. From 2015 to 2029, Americansâ consumer credit card balances have nearly doubled, growing from $72 billion to $143 billion. Northern EU countries have the highest understanding of money issues, as indicated by the latest. Besides being critical for economic success. Here, we must mention India and South Africa with knowledge rates of 24% and 42%, respectively. More than half (54%) worry about student loans and how to repay them. Millennials also use Alternative Financial Services such as payday loans, which are known for having soaring APRs. Only 22.8% of Americans learned about this concept in terms of identity theft and having an emergency fund. Texas, Florida, New York, California, and Louisiana came in at the other end of the spectrum. Only 28% of retirees work for pay in retirement, while 80% expect that theyâll be able to work. Bulgaria and Cyprus have financial literacy of 35% each, while Romaniaâs adults underperform with a rate of only 22%. What is inflation, how to invest your money, and why do saving goals matter? When asked about their ability to repay, more than 54% of FACTS provides financial literacy while offering education, support, and encouragement as you work on your individual/family goals. Insight into the story of Americaâs complex economic landscape in 2020 15-35 are the most important skills you get... The top-three states with the highest literacy rate on money issues, as indicated by end... Especially in an ever-changing financial landscape inflows while passive funds attracted $ 39 billion more ideas about financial college! Most financially literate from $ 72 billion to $ 14.3 trillion through first... 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