financial literacy

A recent article in Marketwatch points out the high cost of financial illiteracy, $200 billion in the last 20 years as people made poor investment decisions, ran up credit card debt or made poor choices about borrowing money.

There are many names for the group of people born from about 1981 to 1997-- millennials, Generation Y, Echo Boomers. A survey by investment firm T. Rowe Price called them the Money Conscious Generation.

It is never too early to talk to your children about money. A new traveling exhibit at the Main Library can help families start the discussion. "Thinking Money" aims to make financial literacy a topic that's both understandable and fun for adolescents. The exhibit is framed with an adventure theme and includes interactive technology to engage teens.

Many of us think we need to wait until our kids are old enough to “get it” before having the money talk. But research shows you actually can start the conversation much earlier. The research also shows the biggest influence on a child’s financial behavior is mom and dad. So, when and how do you start?

According to a 2013 study by the U.S. Department of Education and the National Institute for Literacy, 21 percent of adults in the United States read below a 5th grade level. Millions of adults can barely read at all.

April is National Financial Literacy Month, sometimes referred to as National Financial Capability Month. Social service agencies, financial institutions and educational groups use the month to raise public awareness about the importance of financial literacy and the need for financial education, for both adults and children.

Jeannine Glista is co-creator of Biz Kid$, a national financial educational initiative based on the Emmy Award-winning TV series of the same name. She and co-authors James McKenna and Matt Fontaine recently published a guide about money for kids, How To Turn $100 Into $1,000,000: Earn! Invest! Save!.

Personal finance is something that leaves a lot of us scratching our heads as we ponder questions like how to save, what to invest, and how to do all this while reducing debt. University of Chicago professor Dr. Harold Pollack and his co-author, financial journalist Helaine Olen, say it really isn't as difficult as some would have you believe. 

Many of us feel we need to take control of our finances and do a better job of managing our money. But it can be difficult to sort through the vast amount of financial advice available today from online sites, cable shows and best-selling authors, and come up with a financial plan that works for our specific situations.

Though efforts to teach students how to navigate the world of credit, debt, budgets and savings has improved dramatically over the last decade, many high school and even college students graduate with no real sense of how to manage money.

Graduation ceremonies are being held all across the country, with new graduates about to either continue their education or enter jobs and begin their working lives. But while they may have diplomas or degrees in-hand, many of them won'’t have the financial knowledge they will need to successfully navigate the world of credit, cash and debt.

  Carl Richards is a certified financial planner and a columnist for the New York Times. In his latest book, Richards shares the one question that should be at the heart of your personal finance strategy: “Why is money important to me?” 

  Patrick Burke, CPA, attorney and author, says everyone has  a number, that number, if invested wisely, that results in zero financial worries for the rest of your life. The number that provides “exit velocity” from the gravitational pull of your financial needs. A number, he says, few of us will reach in traditional salaried jobs.

  An estimated 163 million workers are covered under Social Security, yet most of those individuals aren’t really sure what the system means for them, when they should begin collecting Social Security, how their retirement age affects their benefits, or how much money each month they will receive under the program.