Financial Literacy?

November 22, 2009

Fewer word combinations can elicit such…ennui. However, mastering one’s financial understanding or literacy should be cause for a budget-appropriate celebration. After a ten year study, Liz Davidson, CEO and founder of Financial Finesse; a financial education and guidance company, discovered some pretty disturbing results on the topic of financial literacy in American workers. The study began in 1999 in workshops and is now a national research project encompassing over 300 companies who offer Financial Finesse’s services to its employees. Here is a sample of her findings.

86% of employees indicated that they have no idea whether or not they are on track to retire comfortably.

53% admit they lack a basic knowledge of stocks, bonds and mutual funds.

73% are not sure if the asset allocation of their portfolios is appropriate based on their risk tolerance and time horizon.

43% do not have a handle on their cash flow and spend more than they make each month.

62% have not set up an emergency cash reserve.

23% do not pay their bills on time each month.

While Financial Finesse is a benefit offered to workers in particular companies, the website offers great tools for anyone willing to take the time to educate themselves. Check it out.

Do something right now!

We know. She’s just another coiffed talking head on cable television, however Suze Orman would not be an international financial superstar if it wasn’t for her REALLY GOOD ADVICE. While her books and audio books are solid -for a realistic or as she says GET HONEST look at your current financial health we suggest you take the time to fill out the questions asked in her ExpenseTraker tool in the Suze’s Tools section of her website. It takes about fifteen minutes to complete the form, but considering it’s free – what do you have to loose?

For more useful information on how irresponsible credit and loans can land you in a mountain of debt the Center for Responsible Lending offers insight and advice on how to stay in the black or climb out of that said mountain of debt.

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