The Importance of Financial Literacy

Justin Lopez January 3rd, 2024

Imagine driving a car without knowing how to operate it or understanding the basic rules of the road. Now, consider another equally alarming scenario — one that is all too real: many Americans are making financial decisions without basic knowledge of things like investing, budgeting, and credit.

In fact, according to a survey on financial literacy conducted by the TIAA Institute, the average respondent could only answer about half of the questions on common financial matters.1 To make matters worse, another recent survey from the Census Bureau revealed that almost 40% of Americans find it difficult to cover their household expenses.2

It has been said that knowledge is power, and if that’s true, then too many Americans lack the power to control their financial futures. Financial wellness doesn’t happen by chance; it starts with education.

One of the primary obstacles to improving financial literacy is what’s known as the “Lake Wobegon effect” — or the belief that we are all above average, including our knowledge of how to manage our money effectively. Unfortunately, this assumption discourages many individuals from learning and adapting to the ever-changing financial landscape.

The more informed you are, the more informed your financial decisions may become. Thankfully, there are numerous resources available to you and we encourage you to consult with your financial and tax professionals to address your goals, questions, or concerns so that you feel empowered when making financial decisions.

If you’re not sure how to get started, reach out to a member of our team today who can help you put a plan in place and provide you with some peace of mind as we begin a new year., 2022, 2023

Read More By Justin Lopez, AIF®

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Investment advisory services are offered through Concord Wealth Partners, an SEC Registered Investment Advisor.

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