14 Reasons Why Financial Literacy is Important

by | Jan 22, 2024 | Financial Freedom

  1. Less likely to take on debt
  2. More likely to obtain better terms when negotiating
  3. More likely to start planning for retirement early in life
  4. More likely to seek better returns on investments
  5. More likely to seek out better advisors
  6. More informed financial decisions
  7. Better prepared for employment3
  8. More likely to negotiate better pay
  9. Longer life expectancy means individuals must prepare earlier and better for retirement
  10. Self-directed retirement plans require more financial literacy
  11. College students who received financial education in high school had higher credit scores4
  12. College students who received financial education in high school borrowed smaller amounts in students loans with private lenders4
  13. College students who received financial education in high school were less likely to carry a credit card balance while in college4
  14. We believe that creating a financially literate community/country/society makes everyone better off.

#1 reason why parents should sign up their kids now: Once your child graduates high school, you will no longer be able to mandate that they do this. Teach them now, so they have lifelong skills.

Reference 3: HBS Online: The importance of financial literacy in business – Catherine Cote
Reference 4: NEFA.org