What We Do
Two-thirds of American adults cannot pass a Financial Literacy Test.
44% of Americans cannot even cover a $400 emergency because they do not have the cash saved.
43% of student loan borrowers are not making payments to reduce the balance.
38% of US households have credit card debt.
33% of American adults have nothing saved for retirement.
What is Financial Literacy?
Financial literacy is the ability to understand the skills necessary to effectively manage money and make financial decisions; to understand how to build wealth and avoid debt; the basic understanding of inflation and interest rates; how to save, why to save, and how to invest correctly and safely to ensure a path of decreasing debt, building wealth, and sustainable income to live.
Let’s Even the Playing Field: Providing Opportunity for All.
written by Frankie Rose
Our mission here at the Financial Literacy Club is to extend financial literacy resources to all, and it is essential to recognize those disproportionately affected by the lack of financial literacy education opportunities. Only 11.9% of students in the country are required to take a personal finance course — that number drops to only 7.8% for low-income students and 7.4% for students of color. The implications of this lack of education are clear: whereas 55% of white adults were able to correctly answer the P-Fin Index questions (a barometer that measures the knowledge of U.S. adults needed to make equipped financial decisions and effectively manage personal finances), only 37% and 41% of Black and Hispanic adults respectively answered correctly. When considering Charles Schwab’s Financial Literacy Survey, leaving underrepresented minorities and socioeconomically-disadvantaged students out of these courses only sets them up for failure as “Americans agree that lack of financial education contributes to...poverty (58%), lack of job opportunities (53%), unemployment (53%), and wealth inequality (52%).”
The Financial Literacy Club works to close the racial and wealth gap by reaching out and providing resources to all high school students regardless of background. Our articles are written by students for students to learn about new topics in an accessible, informative way. Employing a multimedia approach through our podcast, Zoom panels, newsletter, and infographics, we appeal to any student’s preferred mode of learning. Inviting disadvantaged students into professional networks is key to this effort, which is why we offer open-access webinars with industry professionals that all high school students can join, not just students from affluent communities. As financial literacy expert, Carrie Schwab-Pomerantz of the Charles Schwab Foundation suggests, “financial literacy is about extending equal opportunities to all, regardless of socioeconomic background.” We here at the Financial Literacy Club agree and aim to ensure that the benefits of financial literacy can be enjoyed by all.
COVID-19
written by Frankie Rose
Beyond medical emergencies and political unrest, the spread of the global COVID-19 pandemic triggered immense economic consequences across the United States. When the pandemic struck, people were shocked by the financial consequences of staying at home. Many livelihoods were derailed entirely, leading to some of the highest rates of homelessness ever recorded. Although there’s little value in casting individual blame during a time of such unprecedented crisis as a global pandemic, it is essential to consider how we as a society could have better prepared Americans financially to face a time like this.
Upon closer analysis, it is evident that there is a severe financial literacy problem in the United States. This lack of education surrounding personal finance has only exacerbated the lasting economic effects of the pandemic. As unprecedented as global crises such as this pandemic are, it is crucial that people prepare for unforeseen circumstances such as these so that they are better equipped for dealing with its economic ramifications.
Young adults going into college are responsible for making financial decisions that may have long-lasting effects on their future, yet they are often sent out into the financial world without having learned the basics of how to manage their money. To be financially independent and successful individuals, it is imperative that young adults and teens understand how important it is to save, invest and budget their money and make informed decisions about their finances.
Through newsletters, zoom panels, educational resources, podcasts and interactive programs, The Financial Literacy Club aims to ensure the next generation’s financial stability by educating future investors and addressing inequities among socioeconomically disadvantaged students.
