financial literacy as a deterrent of financial difficulties
Los Angeles-Long Beach, CA (PRWEB) August 11, 2014
Debt Consolidation USA highlights in a recent article published last August 6, 2014 how America’s youth are having problems learning financial literacy.The article titled “The Financial Literacy Problem Of America's Youth” shares some data that supports the lack of financial literacy among the youth discusses how important financial knowledge is for young people.
The article starts off by underscoring the importance of financial literacy as a deterrent of financial difficulties. It is a great tool in making sure that the financial security of a consumer is in place. The article shares a study that only about 40% of American adults are actively budgeting and managing to track their finances. The sad part of this is that around 75% of American consumers are having to get by from one paycheck to another.
These are some of the reasons why it is important to start teaching financial literacy early. The article also shares how financial literacy is a problem with the American youth with the fact that in a study done on students in 18 different countries, only 9% of the students from America showed high proficiency in financial literacy. The study titled “Students and Money-Financial Literacy Skills for the 21st Century,” was aimed to determine the ability of students to assess financial data and to use the most basic financial concepts in problem solving.
The results of the participants from the United States leaves much to be desired. With the total mean of 500, the US got a mean score of 492 and 80% of them could not even properly analyze the most basic invoice. The results from this study goes to show that there are a lot of work to be done in making sure that America’s youth are equipped with the right tools to tackle finances.
The article also talked about the importance of financial knowledge in the lives of young people. One of which is being able to handle college loans. At present, it is already second to mortgage loans overtaking auto loans and credit card debt in terms of debt size. There is a big chance that financial literacy can help the students make better choices about their college finances.
To read the rest of the article, click on this link: http://www.debtconsolidationusa.com/personal-finance/financial-literacy-problem-americas-youth.html