For the next generation to be financially responsible, they must be financially literate. With April being National Financial Literacy Month, it’s a good time to take a look at the financial issues facing today’s youth. Following are some statistics from the National Financial Education Council:
- 57 percent of college graduates plan to move back in with their parents (MonsterTrak).
- 62 percent of college graduates expect to leave school with an average $27,236 in student debt (The Student Monitor).
- 39 percent of American adults have ZERO non-retirement savings (National Foundation for Credit Counseling [NFCC]).
- More than 19 percent of American households have college debt (Pew Research Center).
- More than half of adults (56 percent) do not have a budget (NFCC).
- 76 percent of college students wish they had more help to prepare for their financial futures (KeyBank).
Looking at these statistics, some trends emerge. First, college education is expensive. This is nothing new, but to achieve a certain level of financial standing, a college diploma is necessary.
The fact that 39 percent of American adults have no retirement savings is scary. As new people enter the workforce, it is important for them to immediately and automatically start contributing to a retirement plan.
The idea that more than half of adults do not have a budget is painful. A budget is a map to help you through your financial journey. It allows you to live within your means while also saving for your future.