Monday, July 12, 2010

Financial Literacy is for all: "smart" and "dumb"...




OK guys... Here we are again trying to articulate and analyze the latest events surrounding how Financial Literacy is doing in terms of advocating its importance and the role the US Government, financial institutions and many schools are playing in continue spreading a badly needed education although a couple of somehow worrying issues remain: Are college students (and specially new graduates) really improving their financial knowledge? Is Financial Literacy also evolving in terms of offering a more realistic education and protection (via the latest reforms) for people even from their own financial mistakes?

Well... it seems that we have again a negative answer. According to specialists, Financial Literacy is still low among young people and new rules on banks are not yet "wonderful" enough to protect people from their own financial mistakes which, on the other hand, make sense if people still struggle while making correct decisions involving their own money.

Considering what it still look like a complex economic outlook, Could we assume that the US Government is doing a serious effort in order to "cure" Financial Literacy? Personally, I think that the US Government is doing a serious effort indeed but the specialist Annamaria Lusardi still thinks about a serious problem to be solved by working on a "Financial Literacy bailout for the younger generation".

The above mentioned videos accompanying this note, can give us a very critic view about the urgency to become financially literate and help us to be able to think about and hopefully answer two key subjects: when kids ask parents "if they are rich" and how to help young families not to make financial mistakes.

What do you think? Let us know...


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2 comments:

allcustom said...

fitMost of the times, we are somehow familiar about basic financial news particularly when our money is involved; if we are careful, we could afford to save after reviewing our family budget, get more information as to the interest we would like to earn hoping to see our money grow, choose the most suitable alternative based on our particularly needs, however... Do we really know how an interest rate works when we are able to save part of our money?

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allcustom said...

Most of the times, we are somehow familiar about basic financial news particularly when our money is involved; if we are careful, we could afford to save after reviewing our family budget, get more information as to the interest we would like to earn hoping to see our money grow, choose the most suitable alternative based on our particularly needs, however... Do we really know how an interest rate works when we are able to save part of our money?



Term Papers