Decreasing Financial Literacy Rates
When I saw the headline of Madeline Farber’s Fortune article, I was taken by surprise. It said “Nearly Two-Thirds of Americans Can’t Pass a Basic Test of Financial Literacy.” When I read further into the article, I realized that the numbers weren’t even representative of youth, but rather American adults.
Those numbers correlated with increasing amounts of debt, significantly lower credit scores, and lower retirement savings. Why? Because the education system has not prioritized such practical skills in the classroom. In addition, it’s unlikely that such skills will be extensively learned in the home, either.
The future generations of the world have to be educated early in financial topics. I was fortunate enough to have elementary school teachers and home influences that taught me about a wide variety of financial topics, even extending into investing and financial management. Sadly, I am a rarity among youth.
A Lack of Reliable Resources
Financial literacy is a difficult topic to teach. It is also difficult for many to find affordable, reliable, and insightful tips on money management or investing. There are many services that offer expensive classes, but this is unnecessary. There is also a lack of a significant push for financial education throughout both the internet, and in today’s society.
With Financial Literacy Journal, I hope to be able to concentrate a variety of financial tips in one location, through lessons on a variety of concepts ranging from personal finance to investing, as well as articles on technological and market trends.
The Need for Financial Education
In order to build future leaders and financially-savvy adults, the youth of today have to be educated in finance. Without such skills, it is incredibly difficult to navigate the real world, within the realm of a job, loans, or even credit card spending.
In the overwhelming majority of schools, as well as at home, financial literacy is not viewed as a necessary skill for navigating the real world. Practical knowledge of math, science, and classical texts is excellent and necessary, but it cannot come at the expense of practical, applicable skills.
I hope to change the lack of financial education for young kids across the world, who have not had the privilege of learning the necessary skills to be financially independent. Thank you for reading.
-Alex Patel, President & Founder of Financial Literacy Journal