Financial Literacy

Whether we like to admit it or not, money is among the most

important things in life, yet it is something that is often enigmatic
to many. Financial literacy refers to the skills and knowledge that
allows a person to make informed and rational decisions with
their personal finances. A salient skill in the modern world,
financial literacy, however, has been largely absent among the
young population. The National Bureau of Economic Research
has found that the vast majority of young adults in the United
States lack the financial literacy needed to make important
financial decisions. Only 27% of the 22 to 29 year-olds in the
study displayed knowledge of basic financial concepts, such as
inflation, asset diversification, and the ability to calculate interest
rates. Financial illiteracy is most profound among less privileged
and vulnerable demographic groups, such as women, Blacks,
Hispanics, and those without higher education.