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The Importance of Financial Education

The Importance of Financial Education

In the past, we’ve discussed the importance of being prepared for retirement. Unfortunately, not taking proper precautions can lead to shortfalls later on. It’s important to evaluate what your retirement needs will be and to develop a roadmap to meet those objectives.

Ultimately, one significant factor behind any retirement shortfalls is a gap in financial education, especially among younger generations of Americans. Unfortunately, surveys indicate a widespread lack of financial awareness. For example, in a study by Champlain College’s Center for Financial Literacy, researchers graded all 50 states on what they were doing to promote financial education in the classroom.

Just seven of the 50 states received an “A” rating for their efforts. Of the remaining states, 13 states received a “B” rating, and last of all, 30 states walked away with a “C,” “D,” or “F” rating. Likewise, other surveys show Americans who have retired or are near retirement age have some shortfalls in their financial awareness, as well.

What Financial Education is Important?

The decisions we make about finances will have a strong impact on the future. A comprehensive education will cover many different areas, including fundamentals of macroeconomics and personal finance. On the whole, experts say a solid financial education will cover:

• Basics of how the economy works
• Personal financial skills
• How to create and maintain a budget
• Different saving and investment options
• Familiarity with credit and everything involved (interest rates, reporting agencies, et cetera)
• Tax obligations (local, state, federal levels)
• Knowledge of insurance (health, life, auto, home, health accident, and so on)

In turn, carefully educating yourself and loved ones will help position you for sound decision-making. Once you’re educated, it’s time to evaluate your needs and objectives, and start taking measures to secure them.

For your convenience, SafeMoney.com provides a slew of resources for empowering yourself – articles on annuities, life insurance, IRAs, 401(k)s/other retirement accounts, Social Security benefits, retirement income planning, estate planning, and other areas of interest. Please feel free to use these resources to inform yourself and to help you determine your retirement goals.

Need Professional Help?

If you're ready for guidance on planning for your post-work lifestyle and retirement future, SafeMoney.com can help you. Use our Find a Licensed Advisor section to connect directly with an independent financial professional, and to request a personal strategy session to discuss your needs and goals. And should you have any questions or concerns, call 877.476.9723.

Author: Super User

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