April Is Financial Literacy Month – Too many young people don’t have it, but RightTrak Is Here to Help

April 7, 2022
April Is Financial Literacy Month – Too many young people don’t have it, but RightTrak Is Here to Help

April is National Financial Literacy Month – an entire month dedicated to underscoring the importance of learning, establishing, and maintaining healthy financial habits.

Sadly, it’s likely our next generation is not learning enough about sound fundamentals relating to spending and investing. They also likely do not know that the money habits of the average American reveal that:

  • 69% of Americans have less than $1,000 in personal savings1;
  • More than three out of four adults live paycheck to paycheck2;
  • About half of us maintain three months’ expenses in an emergency fund3; and
  • 45% of Americans have no savings at all1.

The country’s ever-increasing collective debt best illustrates why we need to increase financial literacy among younger learners. More than half (56%) of U.S. adults worry they won’t save enough by retirement4, while student-loan debt increased to over $1.5 trillion nationwide last year.

These stats, combined with the idea of “The Great Wealth Transfer” where it’s estimated $30 to $68 trillion of wealth will be passed down by baby boomers to their millennial children5 and family members within the next 25 years, underscore the importance of providing our children with financial education early in life and open up the money conversation in the household.

We also appear ready and eager to inject financial literacy into formal education. More than half (52%) of teens want to learn more about handling money and are most interested in budgeting, saving, checking accounts, and investing6. Most (83%) American parents also believe high schools aren't doing enough to help their children become financially savvy7.

At TDC Investment Advisory, we decided to do something about this problem by creating RightTrak, a digital education curriculum that makes financial learning fun for high school students, college students, and young adults.

This month, consider discussing RightTrak with your younger family members and give them the gift of financial education with our 15-course curriculum. They will have fun doing it (play our video below to see why). A great project to also have them complete during the summer.

If you have any questions, please contact your TDC adviser or visit our website at www.myrighttrak.com to learn more.

Sources:

1 The Motley Fool. The Percentage of Americans with Less Than $1,000 in Savings Is Shocking

2 Zack Friedman. 78% of Workers Live Paycheck to Paycheck. Forbes. January 2019.

3 Sarah Foster. Survey: More than half of Americans couldn’t cover three months of expenses with an emergency fund. BankRate. July 2021.

4 Northwestern Mutual. Planning and Progress Study 2019

5 Joseph Coughlin. Millennials Are Banking On The Great Wealth Transfer, 4 Words Why You Shouldn’t Cash That Check Yet. Forbes. November 16, 2021.

6 Karen Varcoe, Shirley Peterson, Patti Swanson, Margaret Johns. What Do Teens Want to Know About Money? University of California.

7 Beverley Harzog. Survey: Majority of Parents Want High Schools to Teach Personal Finance. US News. September 2020.

 

Disclosure:

Advisory services provided by TFO-TDC, LLC. RightTrak, LLC is a wholly-owned subsidiary of TFO Marketing Group, an affiliated company of TFO-TDC, LLC.

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