Why Are So Many Americans Financially Dumb?

Yeah, we are a nation of financial dummies.The deputy assistant secretary for financial education
1. Look at all the worthless get-rich schemes on theat the Treasury department testified before the
Net and TV. These ads exist BECAUSE people areHouse, "The downstream, adult problems of rising
buying.bankruptcy rates, low savings rates and misuse of
2. Watch the confused look on the cashier's facecredit can all be traced upstream to how our schools
when you hand over extra coins AFTER the registerFAIL TO adequately prepare children for their financial
displays your change.futures."
3. Witness the people standing in line overnight forSo far, the reasons why we we're financially dumb
the privilege of "25% savings." Aren't they waiting toare because of rising costs and inadequate schooling.
SPEND money?But clearly, these are not all the contributing factors...
If you're a non-believer, read these statistics:There are other reasons, including...
1. According to fool.com, "68% PER CENT of1. Math skills are declining. This is the author's
graduating high school seniors surveyed by theobservation. It's based on teaching high school math
Jump$tart Coalition for Personal Financial Literacy30 years ago compared to teaching college-level
failed a personal finance test in 2002, compared withmath in 2003. Kids in the same area are less skilled
44% who failed in 1997."than 30 years ago.
2. The U.S. Public Interest Research Group states2. Parents forget they are financial role models. They
that "40 percent of college students are graduatingmiss opportunities to develop their kids money
with unmanageable levels of student loan debt, andsmarts.
half of those have an average credit card debt ofCONSIDER THIS SOLUTION
$3000."Hate to ride the "family values train" because there
3. Near retirement age baby boomers have savedare conflicts with the conductor. And the author's
only 12% of what they think they will need foropinion is an educated guess.
retirement.But, parents, consider this...your kids reflect your
THE REASONS WHY?money habits, attitudes, and behavior. What are YOU
The U.S. Public Interest Research Group attributesteaching your kids about money?
the debt issue to rising costs.