Financial literacy effects every aspect of an individuals life.

What is Personal Financial Literacy?

An individual has achieved Personal Financial Literacy when they have acquired the knowledge and skills necessary to perform the following:

  • Make critical decisions affecting their life, education, property and savings
  • Recognize and avoid financially destructive behaviors
  • Manage the challenges of living in an increasingly complex world
  • Avoid becoming a victim of identity theft and fraud
  • Understand and exercise their consumer protection rights
  • Improve their economic well-being


Why does everyone need Personal Financial Literacy?

Alarming Statistics

"Approximately one third of our beneficiaries have no other income than Social Security and for two thirds of retirees Social Security makes up at least half of their income."

Jo Anne Barnhart, Commissioner
Social Security Administration
Financial Literacy and Education Commission Meeting
January 29, 2004

"Personal savings as percent of disposable personal income was (negative) –1.2 percent in January. In December, the rate was (negative) –1.4 percent."

Press Release, Bureau of Economic Analysis
U.S. Department of Commerce
March 1, 2007

"And with tuitions soaring well above inflation, average debt has increased by more than 50 percent, leaving a typical college graduate with $23,600 in student loan debt and $2,000 in credit card debt …"

Tamar Snyder, Author
MSN Money
December 2006

"Consumer debt is now equal to 110 percent of disposable income. Ten years ago, it was 85%, and 20 years ago, it was 65 percent. A key component of household debt can be attributed to the use of credit cards."

Daniel K. Akaka, U.S. Senator
Hawaii
Credit Card Minimum Payment Warning Act
May 21, 2004

Alarming Quotes

"Although financial matters are probably not at the front of your minds today, the day will come when you will be responsible for managing your own or your family's budget or when you find that you need to save to get the things you want ..."

Ben Bernanke, Chairman
Federal Reserve
Huntsville Times
April 26, 2007

"Because the most important ingredient to achieving the American dream is financial education and is perhaps the vital link that is missing so many times."

Dennis Dollar, Chairman
National Credit Union Administration
Financial Literacy and Education Commission Meeting
January 29, 2004

"The need to strengthen, expand and enhance education in economics and personal finance in our nation’s schools has never been more apparent. We must prepare our students with the basics of economic and financial literacy so that they can succeed in life. This literacy is key to home ownership, managing credit, financing higher education, saving and investing, planning for retirement, and responsible citizenship."

Dr. Robert F. Duvall, CEO
National Council on Economics Education
Testimony before the House Committee on Financial Services
April 2005