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Financial Literacy Required for Graduation in Many States

According to the 2022 Survey of the States conducted by the Council for Economic Education. 47 states offer some form of personal finance education in their curriculum. However, only 23 states mandate that students take a personal finance education course before they graduate high school.

Financial Literacy is one of the most fundamental skills you need to succeed in life.  Making this a high school graduation requirement gives those students a head start on creating a solid financial future.

Consider the statistics in America:

  1. The average U.S. household with debt now owes $155,622 – up by 6.2 percent form a year ago.
  2. Credit card balances are on the rise again
  3. Inflation is at its highest rate in 40 years
  4. Savings expectations for a comfortable retirement increased 10 percent to $1.04 million in 2021.
  5. The average 70-year-old has just over $400,000 in retirement savings.

Financial Literacy educates students on basic concepts such as interest rates, compound interest, saving, retirement, budgeting, and investment strategies. According to the FINRA Investor Education Foundation, four in five youths failed their financial literacy test. That means they lack an understanding of financial concepts to guide their decisions about money and provide a stable financial future.

More than sixty percent of Millennials and Gen Z Americans are “constantly” stressed about money and seventy percent feel they’ve fallen behind in their financial stability. They experience anxiety when they check their bank account or credit card statements. 

“Mandated financial literacy courses in high school could go a long way towards alleviating this money stress scenario,” says Jeffrey Basford, Senior Vice President, Investments at David Lerner Associates

If young Americans graduated with a sound financial education, they would be able to put a financial plan for the future in place. Try these tips to alleviate money stress:

  • Set realistic financial goals
  • Spend less than you make
  • Stick to a budget
  • Save at least ten percent of your income
  • Buy what you need rather than indulge in what you want
  • Create an emergency fund
  • Buy a house
  • Create a retirement fund
  • Learn about investing.
  • Talk to a financial advisor

 

 

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.

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