Did you know that a recent study found that 63% of the U.S population failed a basic financial literacy test, according to The American Institution of CPA’s Financial Literacy Commission (AICPA). In this Expert Report Phil Cannella explains how a lack of financial literacy can lead to a lifestyle of not budgeting and poor planning which can result in a vicious cycle.
Here’s retirement phase expert Phil Cannella with today’s report.
We’re calling today’s report financial IQ. The American Institution of CPA’s Financial Literacy Commission recent study found that 63% of the U.S. 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 the lack of budgeting to emergency savings shortfalls, expensive car loans and non existing retirement goals.
Everything is tied together and will determine one’s successful financial future. Now 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 our means, we’re not going to have that rainy day fund left over, so retirement financial goals will suffer greatly, which puts your future at risk.
Now, that explains why more than half the people working don’t think they’re going to 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.
To hear more stories that will impact your financial future, join Phil Cannella and Joann Small this Saturday at 11:00 a.m. On the crash proof retirement show, only on talk radio, 1210 WPHT.
Phil Cannella’s Expert Report airs Live Tuesdays at 7:30 AM and Thursdays at 3:30 PM on Talk Radio 1210 WPHT in Philadelphia.