Studies Show Only 16% of Millennials Understand Basic Financial Concepts

 

Keypoints:

  • Younger generations aren’t taught financial concepts as a life skill.
  • Financial decision-making is something to be learned in middle and high school.
  • Millennials saddled in student debt can’t afford mortgages.

Commentary:

You can’t read financial news without noticing reports about how the younger generations are writing their own rules regarding finances. A 2020 study from the TIAA Institute shows that only 16 percent of millennials demonstrate an understanding of basic financial concepts. But how have we let younger generations fall by the financial wayside? MarketScale’s Hilary Kennedy talked with Dr. Stanley J. Kon, Chairman & Co-Founder of  Ripsaw Wealth Tools –  a wealth management platform, for his perspective, pulling from his mission to provide resources and education for anyone ready to take control of their financial situation.

Abridged Thoughts:

Financial literacy should be thought of as a life skill. Teaching financial decision-making skills should begin in middle school and high school. Critical thinking, which is a key part of financial education, is necessary to evaluate life event decisions that frequently involve trade. For example, students may take on student loans but later find themselves in debt they can’t repay from employment wages. Some borrowers may find they can’t qualify for a home mortgage years later. Financial education can help students only consider borrowing if it increases future earnings by enough to justify the cost.

Our resources are used to achieve a preferred standard of living through time. We invest in education to generate higher future earnings, a better life for you and your family. We promised some of our future earnings in a home mortgage. So we can have a higher standard of living today. Saving for retirement is giving up some spending today to supplement a lifestyle after retiring, and our labor income is unavailable. It is important to distinguish between good and bad decisions.

More Stories Like This:

Will New Income Reporting Have Any Meaningful Impact on the Financial Ecosystem

Why Every Hotel Leader Needs to be a Financial Leader

Follow us on social media for the latest updates in B2B!

Latest

Using Community-Generated Content to Build Engagement
March 29, 2023

Community-generated content (CGC) is a powerful tool for building a sense of community and encouraging engagement around your media content. By featuring content created by your community, you can create a more personal and authentic connection with your viewers while also encouraging them to engage with your brand and share their own stories. What is […]

Read More
plumbing
Plumbing Industry: Providing Support and Adding Value to Your Employees
March 29, 2023

After the 2008 recession, unemployment reached a high of 10 percent, double the rate in December 2007 of five percent. In the midst of the economic downturn, James Terry managed to start a plumbing company, GreenTeam. Why and how did Terry decide to start his business at this time, and how has the culture […]

Read More
Electronic
Go Paperless: Moving from a Manual to Electronic Tracking System
March 29, 2023

Many medical instruments are reusable, which has made tracking them through the sterilization process very important. These instruments often require inspection, maintenance, and sterilization to ensure maximum patient safety. Some healthcare facilities still track their instruments with paper and pen, exposing them to human error, credibility, time-consuming recalls, and boxes of archives that need to be stored. […]

Read More