April is National Financial Literacy Month

Too many people just don’t have it, but The Wealth Guardians can help.

April is National Financial Literacy Month – an entire month dedicated to underscoring the importance of learning, establishing and maintaining healthy financial habits.

But ask yourself this: what have you learned about anything financial lately? Do most of your neighbors keep a household budget or save for retirement? Does your cousin live hand-to-mouth? Do you understand compound interest? Or know what the Dow Jones Industrial Average is? Is gold worth its own weight?

Sadly, it is likely that you did not know that money habits of the average American reveal that:

Only about 40% of adults use a budget and track spending.
More than three out of four adult’s live paycheck to paycheck.
About half of us maintain three months’ expenses in an emergency fund; and
More than a quarter of us have no savings at all.

Our collective debt best illustrates why we need to increase financial literacy in America. More than a third of U.S. adults worry they won’t save enough by retirement, student-loan debt increased to over $1.5 trillion nationwide last year and almost half of American adults say they lack enough money for emergencies.

Income and Age Drive Opinions

Savings and investing go together these days, as 401(k)s and other nest eggs rise and fall in value as the markets gyrate.

But according to a Gallup poll, Americans’ opinions on long-term investments vary sharply – and reflect misconceptions – depending on income and age:

Americans in households with less than $30,000 in annual income are most likely to name gold as the best long-term investment choice. Upper-income Americans are least likely to name gold.
Upper-income Americans are much more likely to name real estate and stocks as best investments, possibly because of good experiences with these types of holdings.
Upper-income Americans are also most likely to own a home (87%). Homeowners are slightly more likely than renters to favor real estate as an investment.
Stock investors more likely favor stocks: More than third of such investors (34%) say stocks are the best long-term option compared with 13% of Americans who don’t own stocks. Upper-income Americans are, not surprisingly, most likely to own stocks (82%).
More Americans rank real estate as the best long-term option today, more than in the past and ahead of gold and stocks.
Americans 18 to 29 years old almost evenly split between favoring real estate, stocks, gold and savings accounts for long-term investments.

At Least We’re Honest About It

We seem frank about our financial shortcomings: Two out of five adults give themselves average or failing grades on personal finance. Moreover, only 33% of parents talk to their kids about money.

By understanding how to better manage money and make the most of limited resources, many Americans can improve personal financial situations. Where did you learn about personal finance – and do you keep trying to learn more?

We also appear ready and eager to inject financial literacy into formal education. More than half (52%) of teens want to learn more about handling money and are most interested in budgeting, saving, checking accounts, and investing. Most (85%) American parents also think high school graduation requirements need to include a course in personal finance.

The Internet offers a wealth of information on finance – but when you don’t understand why you need to use it, you’re unlikely to pursue this information on your own.

That’s why The Wealth Guardians exist—to help individuals and families alike make secure investments for the future and build their wealth on solid ground. Our experienced professionals have been in the business for decades and provide confidential advice no matter what your objectives, so you can be confident that your financial decisions are well-planned with reliable guidance every step of the way.

Our Custom Retirement Paycheck Plan shows how to protect your retirement from the risks of unexpected market swings, tax changes, and health care expenses using a mathematically tested strategy to create lifetime income allowing you to stop worrying about outliving your money and get on with enjoying the rest of your life.

Let us show you in black and white a custom retirement income plan that is comprehensive, individualized and based on strategies that balance growth with downside protection. Get your Custom Retirement Paycheck Plan now!