Getting Your Finances in Order
Financial literacy is not a strong point in America:78 percent of financial advisers say that financial literacy is a concern in the U.S. today. An astounding two-thirds of adults in America can’t pass a basic financial literacy test!
A recent NFCS survey showed that while many folks felt they knew what they were doing when it came to their finances, they were, in fact, acting negligently. Just over 40 percent said they would give themselves a perfect score when it came to managing their money, but 29 percent of them don’t handle their finances very well at all.
They admitted to engaging in “expensive’’ credit card behavior. This includes things like only paying the minimum payment every month which makes the amount they pay over time far more than the cost of the purchase. They also use credit cards for cash advances and pay late fees.
Twelve percent of the respondents overdrew their checking accounts.
Research has unearthed the fact that only 37 percent of Americans are able to answer simple questions about what inflation is and how it works, as well as compound interest and diversification. This has gone down from 42 percent in 2009. This means the nation is getting worse at managing and understanding finances when we need to be getting better at it. Get professional advice about your money, and make sure you are not in the dark when it comes to savings and investment.
“Make certain you are getting professional advice and choosing the best financial plan for your situation. If you don’t understand something, ask questions,” said President of David Lerner Associates, Martin Walcoe. “There are no stupid questions when it comes to your money. Don’t put yourself or your money at risk unnecessarily.”
If you’re not financially literate, you need to find out more about it. Your financial future depends on your level of understanding of these basic concepts. Without getting your finances under control, you won’t be on the road to a safe and secure retirement, and you certainly won’t be free from money stresses.
Understanding how money works and what to do with it is essential for your future as well as the future of those you love. Knowledge is power, and when it comes to money, you don’t want to be “just along for the ride” instead of being in the driver’s seat.
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