Improving Your Financial Literacy
The federal government has declared April "Financial Literacy Month." Economies worldwide are reeling from the fallout of the subprime market collapse. Credit card debt and bankruptcy filings are higher than ever among Americans. And Total Bankruptcy has decided it's time to do something about it.
A recent story in The Economist highlighted what has become a serious concern in recent months - the lack of financial literacy among…well, among just about everyone, according to various surveys and studies.
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The Economist highlights these disturbing numbers:
- 40% of Americans don't pay their credit card bills in full each month;
- Nearly 1/3 of Americans don't know their credit cards' interest rates;
- Only 3 states require personal finance classes to be taught in school; and
- Less than 17% of American students have participated in a financial literacy course.
Misconceptions about Financial Literacy
Because subprime mortgages were most commonly given to lower-income borrowers, a misconception about the focus and scope of financial illiteracy arose: many people mistakenly think that only those without much money don't know much about handling money.
As it turns out, people from all income levels and in all nations of the world need help understanding basic economic principles.
In recent years, various organizations have sprung up to address the problems associated with financial illiteracy, but, as the mortgage meltdown demonstrated, more efforts are needed. Los Angeles-based Operation HOPE, founded by John Bryant in 1992, reportedly offers financial advice and education.
Banking on Our Future apparently runs financial-literacy classes for high school students and offers mortgage counseling for those looking to buy homes.And sources indicate that Jump$tart runs 180 organizations promoting financial literacy in the United States.
Despite these efforts, many Americans reportedly still lack bank accounts and don't understand why that hurts them.
How Total Bankruptcy Will Address This Issue
To help address this issue, Total Bankruptcy is adding a new Financial Literacy section to our site. We'll publish articles and guides about various financial literacy issues. Whether you're rebuilding after bankruptcy, considering filing for bankruptcy or just trying to develop better financial habits, this section will have valuable information for you.
We think it's time to take action.
To get the latest tips on how to handle money and prepare for your future better, visit Total Bankruptcy each week.