We all make money mistakes — some small, some painful. Simple ignorance is often at the root of our mistakes.
According to the National Financial Educators Council (NFEC), Americans lost an average of $1,819 in 2022 simply due to financial literacy.
In total, it is estimated that 240 million adults in the United States lost more than $436 billion last year due to this kind of ignorance.
Arriving at that discovery, council investigated We asked 3,001 adults one question. “How much money do you think you lost in the past year (2022) due to your lack of personal financial knowledge?”
The results are as follows.
- 61.8% of respondents: $0-$499
- 7.23%: $500-$999
- 7.96%: $1,000-$2,499
- 7.98%: $2,500-$9,999
- 15.04%: $10,000 or more
so summary Commenting on the findings of the survey, NFEC CEO Vince Shorb said:
“Financial literacy is rampant in the United States, occurring at a time of rapidly changing economic conditions. It is imperative to help them acquire the personal finance knowledge they need to deal with the real-life situations they both face.”
NFEC notes that financial literacy can hurt people in many ways. The results are as follows.
- High interest on loans and credit cards
- bank overdraft
- identity theft
- vehicle seizure
“People who lack money skills may not even realize how much it costs, so the actual situation could be worse than the findings suggest,” the council said. There is,” he adds.
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