036: Do you have money smarts?

036: Do you have money smarts?

This topic makes me sad a bit, but I want to talk about it. Let’s call it Money Smarts or “Financial IQ”

Americans still can't answer some basic personal finance questions correctly — and that's not even the worst news from a new survey on financial capability.

You would think by now that consumers would have a sense of how to calculate savings account interest and what effect inflation has on their buying power, but the figures are still dismal. In 2009, 42 percent of consumers could answer at least four of the five quiz questions correctly; now, only 37 percent were able to. The overall survey average was 3.2 correct answers.

What is going on? Are we just lazy? Is that because we have a phone in our hand 24/7 and know how to use google?

I think this closely relates to why so many americans are struggling and living paycheck to paycheck.

What many need to understand that Financial literacy is something you need to stay current on all the time. It’s not something you do once (take a class or read a book). You will be faced with making decisions which will require you to be edgile!

How well are you prepared?

 
Anna Sergunina
anna@adviceonly.net

I passionately believe that in order to live a life of fulfillment and joy, we must genuinely serve each other in any way possible. I found my mission in life to serve others via financial planning. Anna regularly writes about personal finance. Her work appears on Business Insider, Nasdaq, Nerdwallet, among others. Anna is the creator of Money Flow system.

Get Started with Anna