We’re calling today’s report Financial IQ.
The American Institute of CPA’s Financial Literacy Commission’s recent study found that 63% percent of the US population failed a basic financial literacy test.
As Baby Boomers retire they have a troubling financial future, along with many other Americans making the same mistakes, ranging from credit card debt and lack of budgeting to emergency saving shortfalls, expensive car loans and non-existent retirement goals. Everything is tied together and will determine one’s successful financial future.
According to the Financial Literacy Commission, this lifestyle of not budgeting or planning creates a vicious cycle. People need credit cards to pay for their high cost of everyday spending, such as mortgages and health insurance and the average car loan is a staggering $528 per month.
And, because we didn’t budget correctly and many of us are living beyond their means – we’re not going to have “rainy day” funds leftover, so retirement financial goals suffer greatly which puts your future at risk.
That explains why more than half the people working don’t think they’ll have enough money for retirement, and that’s according to the Federal Reserve Bank of New York.
The foundation for a high financial IQ is education complete with an evaluation of your finances. Seek out your retirement phase expert who will allow you to take control over your financial future.