Financial Literacy News Round Up!

On this week's blog we will be highlighting some great writing that was published recently about the importance of the work we do here at IIG in support of Financial Literacy.

The first article is from Investopedia where they cover why current trends make having financial literacy even more important than previous times and share some interesting statistics.

A few years ago, a study from financial services company TIAA-CREF showed that those with high financial literacy plan for retirement and, in essence, have double the wealth of people who do not plan for retirement. Conversely, those with low financial literacy borrow more, have less wealth and end up paying unnecessary fees for financial products.
— Investopedia

Why financial literacy is so important

In past generations, cash was used for most daily purchases; today, it's rarely flashed - particularly not by younger shoppers. The way we shop has changed as well. Online shopping has become the top choice for many, creating ample opportunities to use and overextend credit - an all-too-easy way to accumulate debt, and fast.

The second article is from Forbes and shares statistics that highlight the negative impacts not being financially literate is having on many Americans.

4 Stats That Reveal How Badly America Is Failing At Financial Literacy

Do you work hard every day but still don't feel like your finances reflect your grind? You're not alone. 44% of adults don't have enough cash to cover a $400 emergency. But just how bad is financial literacy in America? Here are four alarming stats that could be improved with the right education.

The last item is a video from the Fine Brothers. It is a game show where they gave preteens $100 to spend at a store and had parents see if they could guess where their kids would spend the money. The results are interesting. We share it because it highlights the importance of teaching good spending habits young.