Survey: Many in the dark about personal finance

April is National Financial Literacy Month, and it couldn't arrive at a better time for Americans who can't answer the most basic questions concerning personal finance.
APR 12, 2009
By  MFXFeeder
By Jamie Burns April is National Financial Literacy Month, and it couldn't arrive at a better time for Americans who can't answer the most basic questions concerning personal finance. A recent national survey completed by the Center for Economic and Entrepreneurial Literacy in Washington showed that although economic issues have been in focus for months, people still have trouble understanding fundamental financial concepts and terms. According to the survey, 53% of the respondents said that they didn't know what the Dow Jones Industrial Average was, 52% couldn't describe the advantages of a Roth individual retirement account, and 43% couldn't identify a Fico score as the most important factor in receiving a loan. Respondents were also unfamiliar with topics that can greatly affect their wallets. The survey showed that 76% didn't know that bouncing a check was more expensive than short-term payday loans, and 71% severely underestimated the amount of time necessary to pay off a credit card balance while making only minimum payments. "You'd think that with all of the media coverage about the economy right now, you would see improvement," said James Bowers, the center's managing director. "There are financial experts discussing advanced details of the economy, but they should really start at square one because the American public is at square one when it comes to basic financial knowledge." The survey results also highlight the need for mandated education programs for students in order to broaden economic literacy at an earlier age, Mr. Bowers said. The center's website, Econ4U.org, provides quizzes and data for adults who are looking for help with homeownership or investments, as well as teenagers who are seeking information about credit cards or student loans. The survey — of 1,000 participants — was conducted March 23-28.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.