Knowledge is power in every aspect of life. Imagine driving a car without a basic understanding of the rules of the road, or even how to operate it. That’s quite a scary thought.
What’s even scarier? Many Americans are operating their personal finances with only the barest minimum of knowledge. One study found that, when asked five basic questions about finances and the markets, 61 percent of Americans were unable to answer more than 3 questions correctly.¹
That same study also found that 18 percent of Americans routinely spend more than their household income. Additionally, it found that one-in-five Americans have overdue medical bills.
The reality is that knowledge puts people, retirees especially, in a powerful position. Unfortunately, however, far too many Americans lack the power to control their financial futures. But education lays the foundation for a journey towards a successful and sound financial future.
One of the obstacles to increasing financial knowledge is what has been called the “Lake Wobegon effect,” the idea that we all consider ourselves to be above average. It is a self-assessment that prevents many people from learning an adequate amount of what they need to. But whatever your knowledge level may be, it should be recognized that an ever-evolving financial landscape puts a premium on continual learning.
There is a wide range of resources for individuals who understand that the more informed they are, the better the decisions they can make.
If you are committed to increasing your financial literacy, a good beginning is never being afraid to ask questions of financial professionals. At Baron Silver Stevens Financial Advisors, LLC, we act in a professional and fiduciary manner so that our clients are educated on their path to financial success. Contact our Boca Raton office today to learn more about protecting your financial future with a financial education.
- FINRA Investor Education Foundation, 2016