Still wondering why CPAs are spending so much time promoting the concept of financial literacy? It's because, in the words of this CNNMoney article, Americans are "financially illiterate."
We knew the situation was bad, but the article indicates the problem could be worse than first thought. "Even those with a college degree don't have an understanding of the basic finance ideas," Dartmouth College economics professor Annamaria Lusardi told author Catherine Clifford.
How bad is it? Overall credit card debt soared by more than 300 percent from 1989 to 2006, and the percentage of people who are late on their credit-card payments is at a three-year high, according to this CNN article.
The good news (if you can call it that) is that opportunities abound for CPAs to make a difference in the lives of debt-strapped individuals. These resources can help you spread the financial literacy message.
- MACPA financial literacy resources
- Money Management columns
- Financial Planning Tips for a Lifetime
- 360 Degrees of Financial Literacy
- Feed the Pig
What's the worst personal finance story you've ever heard?
Hi,
Americans are truly uneducated when it comes to personal finance. Most of us live under illusions of having money that too on credit cards. The fact of owing monet, the high rate of interest and the depth of accumulated debtis hardly understood unless the creditor calls up for a demanding sum of money. Now this is a very good way to take advantage of people in crisis.
Calling ourselves uneducated about personal finance is not all. We have to work upon it to make it happen. How can we keep letting anyone take advantage of us?
Posted by: Jason | February 28, 2008 at 05:09 AM