Wouldn’t it be great to have a strong background for financial decision making so that we can make informed choices to maximize our financial success? By having a greater understanding of taxes, savings, credit, debt, budgeting, retirement, and investing, financial literacy arms us with the knowledge and skills we need to manage our money effectively, yet nearly two thirds of Americans can’t pass a basic financial literacy test according to a FINRA Investor Education Foundation study. Financial literacy is crucial to help consumers save enough to have a comfortable retirement, free of high debt. While it may seem that a lack of financial literacy would be an individual problem, just think back to the financial crisis of 2008 to see the impact on the entire economy that resulted from a lack of understanding of mortgage products.
Financial literacy has become a hot-button issue as millions of Baby Boomers are reaching retirement age and a wave of younger Americans are battling skyrocketing student loan debt. In 2004 Congress passed a law citing April as Financial Literacy Month to “raise public awareness about the importance of financial education in the United States and the serious consequences that may be associated with a lack of understanding about personal finances.” Despite being a global superpower, the US ranks 14th out of 148 countries in adult financial literacy, slightly ahead of Estonia and Bhutan, according to Barron’s, and 46% of Americans have less than $10,000 saved for retirement.
To help combat the financial literacy epidemic spreading across the nation, in addition to educating our clients through meetings and resources in the Jacobi Media Center on www.jacobicapital.com, Jacobi Capital Management has partnered with Barron’s in Education to spread financial literacy to the next generation. With an estimated $68 Trillion generational transfer anticipated over the next 25 years, the largest wealth transfer in history, we believe it’s crucial to emphasize financial literacy and education for the next generation. By sponsoring King’s College and Wilkes University through the program, Jacobi has provided students with access to leading financial professionals for mentorship, resources for gaining understanding of personal and corporate finance, and a network of like-minded students striving to advance their professional growth. We believe the greatest gifts you can give to others are knowledge, financial security and confidence.