Financial literacy is an incredibly important part of modern life. We no longer barter in farmyards, and most of us certainly do not hoard cash in mattresses. It is a technological world these days with new currencies like Bitcoin and internet banking. Credit cards are considered a normal part of life.
It was only in 1966 that credit cards as we know them really came to the fore. It was the first time where you would have the bank lend you money as you charged the purchase, and you did not have to settle the amount in full at the end of the month. Before this period, if you were an individual, you did not have access to easy credit.
Today, credit card debt is on the rise, and folks are not as savvy as they could be when it comes to their finances. More U.S. adults than before say that their household carries credit card debt over from month to month. Worse than this, almost two in ten adults say that they roll over $2,500 or more in credit card debt each month.
A very important facet of financial literacy and capability is the being able to plan accordingly so that you can make ends meet through earnings as well as adequate savings. Survival is not just a roof over your head and food on the table. Many Americans worry about medical expenses and health care. In the United States, 18% of individuals reported that over the past year their household spent more than their income. This does not include the purchase of a new home or car or other big investment. More than 20% said they had medical bills past due.
If you are not balancing your monthly income and expenses and are not saving at all, then you may want to rethink the situation. Becoming financially literate and stable will be a mighty weight off the shoulders of many Americans. Freeing yourself from debt is the only way to ensure you are safe and secure as your life goes on.
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