Financial Education
October is National Learning and Development Month. It’s important in both your professional and personal lives to keep learning, broadening, and advancing your skills. Whether we take a management class at night or learn another language, both keep our minds sharp, improves our confidence, and has the added benefit of looking good on our résumés.
On the other hand, ignorance can be costly, especially when it comes to your financial literacy. Investing time and energy into financial education is the best investment you can make.
According to a study published by FINRA, Millennials exhibit very low levels of financial literacy—only 24% can answer four or five questions correctly on a five-question financial literacy quiz. That’s a scary thought.
Miriam Webster defines IQ as “proficiency in or knowledge of a specified subject.” Your financial IQ depends on your ability to understand the various terms and concepts which make up the subject of finances.
Another study by The National Endowment for Financial Education found that the amount and timing of financial education matters. When it comes to building financial literacy to shape behavior, education that closely precedes a financial decision has more impact.
The truth is, financial literacy is an essential skill you must develop if your goal is to try to build wealth and enjoy financial security.
Financial literacy provides a long list of advantages. Peace of mind alone should be enough of an inspiration. Despite an improving economy, nearly 90% of Americans surveyed by the American Psychological Association report feeling stress about money.
Nelson Mandela may have said it best. “Education is the most powerful weapon which you can use to change the world.” Similarly with your own financial education, it is your most powerful weapon for the growth of your wealth and financial well-being.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC