Thinking of taking on debt? For example, opening a credit card or purchasing a car or home? Unsure how much of it is too much? This is quite an ambiguous question because many have different opinions on debt. Some believe having it is taboo, even when it comes to buying a house. Others believe it’s fine to have debt as long as you can afford the payments.
According to www.FinancialLiteracyMonth.com, Americans are over $2 trillion in consumer debt and 30% of consumers report not having extra money; thus making it impossible to avoid living paycheck to paycheck for some Americans. Some of these families living paycheck to paycheck have children that will see their financial struggle and may miss out on crucial financial skills they’ll need for their future.
Too many Americans are also insufficiently educated about personal finance. The National Financial Educators Council issued a 30-question National Financial Literacy Test designed to measure young participants’ ability to earn, save and grow their money. Fifteen- to eighteen-year-olds scored 61.24% out of 100% nationally on this financial literacy test in 2015. These results show the American youth is lacking basic financial skills and education.