Although America looks like we’re in a good place, only about 57% of adults are savvy in these basic topics. Though this gives a rough picture of each country’s literacy rates, it does not take into account external factors such as cost of healthcare, education, basic needs, cultural differences, and so on. These results are based on a study that considers the financially literate to be those who have a basic understanding of 4 key concepts: basic numeracy (interest), compounding interest, inflation, and risk diversification. The map below shows the percentage of adults that are considered “financially literate” in each part of the world. Experts believe that the skills students learn in these courses produce tremendous results. Students who take these courses are found to handle college and credit card debt more responsibly. In America, only 25 states have state-regulated economics courses that are required to graduate high school, and only 6 require a personal finance class to be taken to graduate. ![]() America’s Approachįinancial literacy programs vary state-by-state and can be seen in different forms across the world. ![]() For some, this leads to a rabbit hole of other financial missteps that negatively affects other aspects of their lives. ![]() Countless young Americans take out student loans when they are just out of high school without the full understanding of the commitment that those decisions take and the potential decades that might be required to pay them off. The decisions that we are expected to make in our lifetimes should be accompanied by the resources that are needed to make them. Assuming that financial freedom is a common goal, Americans are not doing as well as they could be. We have a major consumer debt problem, which primarily fit into these 4 categories: student loan debt, credit card debt, mortgage debt and auto debt. 44% say discussing their finances is stressful.” In America alone, “Over 53% of adults say thinking about their financial situation makes them anxious. This simple topic divides the haves and have nots in intersectional ways related to culture, gender, age, geographic location and more. Financial literacy is possibly the most important set of information in the modern world.
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