The FINRA National Financial Capability Study recently looked at the spending and saving habits of Americans and found some startling information. Did you know that:
- Only 49% of survey respondents reported that they had set aside funds sufficient to cover expenses for three months in case of job loss or other emergency.
- Only 42% of the FINRA survey respondents who weren’t retired said they had taken the time to calculate what they would need.
- Only 41% of those who have financially dependent children have set money aside for college education.
April is National Financial Literacy Month, so it’s a good time to reassess your savings and spending patterns to build a brighter future for yourself and your family. BBB recommends the following:
Start calculating now. You are never too young to start planning for retirement. Decisions about how much to save in order to afford a comfortable retirement require collecting information about several important variables (including Social Security and retirement plan benefits) and doing some, even rudimentary, calculations.
Budget appropriately when it comes time to pay for a child’s education. It is reported that over the past decade, tuition and fees at four-year public colleges and universities have increased more rapidly than they did during the 1980s or 1990s, rising by an average of nearly 5% each year!
Manage your debt. One of the best ways to ensure a brighter financial future is to manage and eliminate costly debt. BBB offers “Managing Credit – Made Simpler,” an online learning tool for consumers and small business owners.
Avoid “get rich quick” schemes. BBB exposes scams and frauds every day. Visit www.bbb.org for more information on businesses, charities and investments you can trust and always do your research with BBB first!