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|Posted on 27 May, 2019 at 16:30|
Financial Literacy is necessary knowledge to make financially responsible decisions that are integral to our everyday lives.
The ability to manage personal finances is an essential skill for survival in an increasingly complex financial world where individuals are responsible for their own financial decisions on retirement planning, money management, major purchases, financing, health care, insurance and savings choices. Consequences of poor financial choices are not limited to the individual, family, or company facing financial troubles; their financial problems impact entire communities.
A few examples resulting in financial difficulties are the lack of “rainy day” savings, not making wise money choices and too much debt. Financial problems create stress and anxiety, which may lead to poor health, performance and distractions at home, school and work.
A recent January 11, 2019 Forbes article recapping a survey found:
- 78 percent are living paycheck to paycheck, including one in ten employees making six figure incomes.
- About 25 percent of employees do not save monthly
- 75 percent are in debt and believe they will always be in debt.
Financial Literacy teaches individuals how to make better choices, avoid bad financial practices and provides resources to get back on course when problems arise. A CPA’s education, experience and reputation as a trusted advisor makes us a natural resource to educate our communities and the public on financial literacy. As CPAs, our knowledge of financial topics puts us in an excellent position to discuss best practices, planning, risk management, retirement, elder care, health care, savings, investing and tax planning within our communities.
Take one step this week to improve your financial habits! Your future self will thank you!