Financial literacy has been a popular topic in recent years. Type that phrase into Google and the search engine will return hundreds of articles that describe how lacking Americans are on the subject. There are movements to establish required financial literacy classes in grade school and high school. Personal finance blogs like this one seem to be more popular today than ever. Becoming a financially literate nation appears to be a priority.
But what does it mean to be financially literate?
Perhaps you’ve never thought about this question before; maybe you always figured you would keep learning about money matters and hopefully put it all to use someday. There’s nothing wrong with this approach on a personal level. However, there is value in having a set of financial literacy standards on an educational, organizational, and national level. Without one, it’s impossible to properly evaluate the effectiveness of the information, programs, and practices we advise and implement to improve financial literacy.
We know what financial literacy is and we have ideas about how to teach it. But how should we assess whether a person is “financially literate?” We’ll be researching and discussing this topic in the upcoming weeks and would like to hear your thoughts on the subject. You can leave a comment below or contact us with your ideas on what it means to be financially literate.
For more information on financial literacy in America, check out Mint’s infographic, “Making the grade: understanding America’s financial literacy.”