E.G GOES IN ON FINANCIAL LITERACY, AND MONEY, ALSO RICH DAD, POOR DAD THE BOOK!!!!!!!!
Financial literacy is the possession of skills that allows people to make smart decisions with th...
Renegade Talk Radio · Renegade Talk Radio
June 8, 201932m 49sExplicit
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Show Notes
Financial literacy is the possession of skills that allows people to make smart decisions with their money.
And don’t be misled by the word literacy. Although understanding stats and facts about money is great, no one has truly grasped financial literacy until they can regularly do the right things with money that lead to the right financial outcomes.
When you have this skill set, you’re able to understand the major financial issues most people face: emergencies, debts, investments and beyond. Financially literate people know their way around a budget, know how to use sinking funds, and know the difference between a 401(k) and a 529 plan. Here are the concepts financially literate consumers have mastered:
Based on the stats that we’ve already considered, it’s fair to guess that the majority of people don’t know how to handle their money. And while there’s no one sure way to measure how many people are financially literate, the lack of certain skills would confirm that guess.
For example, if you used the number of people who don’t live paycheck to paycheck as an estimate of financial literacy, only about 20% of people would qualify!
Budgeting could be another skill for measuring financial literacy. And how do Americans stack up in that department? Sadly, not even a third of people earning a paycheck (32%) stick to a budget.(7)
Let’s look at the findings of the National Financial Capability Test given to over 17,000 people from all 50 states. The National Financial Educators Council (NFEC) reports that less than half (48%) of participants were able to pass the 30-question test that covered things like budgeting, paying bills, setting financial goals, and other personal-finance related topics.
y now, you’ve got a pretty good sense of where you stand in terms of your own financial literacy. Maybe you have a lot to learn, but it’s encouraging to know that increasing financial literacy could transform whole families, communities and even the nation!
Many educators are already working hard to bring this kind of understanding to millions of students nationwide. Every year, thousands of graduates go through our middle school and high school personal finance curriculum, Foundations in Personal Finance, and gain financial literacy skills that empower them for a lifetime of money success. We love that so many young people are picking up these essential skills and habits!
Are you a teacher? If so, check out Ramsey Education to learn more about how you can equip your students with financial confidence! If you’re not a teacher, tell the teachers in your life about our life-changing Foundations in Personal Finance curriculum.
And don’t be misled by the word literacy. Although understanding stats and facts about money is great, no one has truly grasped financial literacy until they can regularly do the right things with money that lead to the right financial outcomes.
When you have this skill set, you’re able to understand the major financial issues most people face: emergencies, debts, investments and beyond. Financially literate people know their way around a budget, know how to use sinking funds, and know the difference between a 401(k) and a 529 plan. Here are the concepts financially literate consumers have mastered:
Based on the stats that we’ve already considered, it’s fair to guess that the majority of people don’t know how to handle their money. And while there’s no one sure way to measure how many people are financially literate, the lack of certain skills would confirm that guess.
For example, if you used the number of people who don’t live paycheck to paycheck as an estimate of financial literacy, only about 20% of people would qualify!
Budgeting could be another skill for measuring financial literacy. And how do Americans stack up in that department? Sadly, not even a third of people earning a paycheck (32%) stick to a budget.(7)
Let’s look at the findings of the National Financial Capability Test given to over 17,000 people from all 50 states. The National Financial Educators Council (NFEC) reports that less than half (48%) of participants were able to pass the 30-question test that covered things like budgeting, paying bills, setting financial goals, and other personal-finance related topics.
y now, you’ve got a pretty good sense of where you stand in terms of your own financial literacy. Maybe you have a lot to learn, but it’s encouraging to know that increasing financial literacy could transform whole families, communities and even the nation!
Many educators are already working hard to bring this kind of understanding to millions of students nationwide. Every year, thousands of graduates go through our middle school and high school personal finance curriculum, Foundations in Personal Finance, and gain financial literacy skills that empower them for a lifetime of money success. We love that so many young people are picking up these essential skills and habits!
Are you a teacher? If so, check out Ramsey Education to learn more about how you can equip your students with financial confidence! If you’re not a teacher, tell the teachers in your life about our life-changing Foundations in Personal Finance curriculum.
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