Becoming Financially Literate With Credit Cards

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Recently, a study conducted by the American Middle for Economic & Entrepreneurial Literacy found that a large number of Americans lack basic math & personal finance skills. It found that the overwhelming majority of Americans are usually unable to answer basic questions about their personal finances. As an example, 65 percent of the people responding to the survey answered incorrectly when asked how plenty of reindeer would stay if Santa had to lay off 25% of his eight reindeer due to poor economic conditions. Also, 75% of people thought that it would take 15 years or less to pay off $5,000.00 in Christmas presents in the event that they made the maximum payment on their credit card. In fact, it would take 46 years to pay off expenses like this. 30% people didn't know how much funds a person would be spending on gifts in the event that they spent one percent of their $50,000.00 per year wage. You can gather brief infomation about personal financial literacy at my website as well.

This issue originates from the dearth of schooling. Personal finance is not taught in schools or in college & most people are therefore left to basically depend on what their parents taught them or what they research themselves. In some families, parents try to shield their babies from discussions about funds because they feel that it is an 'adult topic'. This can lead to babies having excessively emotional or irrational view of their finances because when the financial issues of their parents bubble to the surface it is often in the context of an argument & there is no rational discussion of the relatives finances. Also, in some cases, parents unintentionally pass on poor personal finance skills to their babies. You can also visit http://www.finlit.com/financial-planning to get more info.

In schools, the main issue with personal finance schooling is not that the knowledge is complex or difficult for babies to understand. In some cases it may be that teachers themselves do not adequately understand personal finance in order to be able to teach others.