“The number one problem in today’s generation and economy is the lack of financial literacy”
“Employees with access to financial and retirement education have less stress, more savings and more confidence than those without access, a Ramsey Solutions survey found,” writes Lee Barney in a highly interesting plansponsor.com piece headlined Financial Education Improves Retirement Savings. “Forty percent of workers, however, are not offered financial education. Seventy percent of those who have no retirement savings are not offered financial education.” The article continues:
“The most common sources that Americans rely on for retirement education are their employers and their parents, each cited by 35% of respondents. This is followed by family and friends (32%). Workers who cited their employers as their first or second source have more money saved than those who rely on family or friends. In addition, people who are offered financial education at work say they feel positive emotions like excitement (49%) and optimism (40%), while those who do not have financial education say they feel anxious (47%) and afraid (40%).
“Forty-seven percent of those who have saved between $250,000 and $999,999 say their employers are a source of financial education. Ninety percent of Millennials and Gen Xers said they would be comfortable talking with their employer about retirement planning. Half of Baby Boomers say their employers do not offer retirement education, compared to 39% of Gen Xers and 33% of Millennials. Among lower-income workers, 64% are not offered retirement education, compared to 43% of middle-income workers and 29% of highly compensated workers.”