The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Below are some updated Fast Facts on Financial Literacy in honor of National Financial Literacy Month.
2004 was the first year the United States Senate officially designated April as National Financial Literacy Month, with the House following in 2005. The overarching goal is to teach Americans how to establish and maintain healthy financial habits and make informed financial decisions.
FACT: Research shows that financial curriculum can have a positive impact on how consumers manage their finances.
- Financial education is likely to increase savings, use of banking services, home purchases and improvements in overall financial health.
- Prudent use of insurance products protects financial assets, including the consumer’s most valuable asset – the ability to earn an income.
FACT: Even after the pain of the most recent financial crisis, few Americans are making wise financial decisions.
- Two in five adults gave themselves a C, D, or F on their knowledge of personal finance.
- Last year, more than 77 million Americans, one third of US adults, did not pay their bills on time. More than half of adults admitted that they do not create a budget for their expenses.
FACT: Through the Financial Literacy and Education Commission, the Federal Government has developed a national financial education website and hotline, compiling information from over 20 agencies.
- Efforts include teaching materials provided by the FDIC, Department of the Treasury, Securities and Exchange Commission, and Department of Education.
FACT: The Financial Services Roundtable member companies have focused much of their community service initiatives on financial literacy, completing 42,320 financial literacy projects in 2012.
- Projects served a broad base of consumers, including students, adults, service members, the elderly, and un-banked or under-banked Americans.
- The vast majority of Roundtable companies are engaged with Junior Achievement USA, fostering financial literacy to 4.2 million US students annually.
- A full listing of programs provided by our members is available on our website, in addition to a financial literacy roadmap with free resources and curriculum for K-12 education.
FACT: The Roundtable Scholarship Foundation established a financial literacy scholarship in 2011 to encourage high school students to participate in financial education courses before entering college.
- 17 students received the award in 2012, an increase from 9 students the previous year.
You can view all previous Fast Facts at www.RoundtableResearch.org.
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