Financial Literacy Begins at the Dinner Table

Why is financial literacy so important?

In New Evidence on the Financial Knowledge and Characteristics of Investors, researchers from the Financial Industry Regulatory Authority (FINRA) and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business find today’s investors are at risk of falling behind in financial literacy. In recent years and decades, the number of defined benefit programs has been in decline in favor of defined contributions plans such as 401Ks, leaving investors with greater responsibility for their own financial futures.

The literacy problem starts at the dinner table but is exacerbated by the lack of financial education given to those who will soon be in the workforce. Teaching our children, the foundations of financial literacy is critical in creating a more fiscally educated future for our country and our families. If a child doesn’t understand why they should save their allowance, and their parents have the same behaviors for their paychecks, can we expect this child to learn the ‘healthy’ way of doing things? Creating financially responsible citizens starts in our homes, where we have to be strong influences for the young and impressionable eyes that are watching. READ MORE