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Financial Literacy Month: It’s Not Just Money, It’s Your Life

Imagine your spouse of 30 years dies suddenly of a heart attack, and amid your fog of grief, you don’t realize you haven’t paid your power bill for three months. The power company is threatening to shut your lights off, and you don’t have the money because you drained your savings account to pay for […]

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Making Kids’ Allowance Count: The Key to Teaching Financial Literacy

Kids' allowance: Girl putting money into a piggy bank

Not surprisingly, opinions about how, why and when to give kids an allowance vary widely. Many articles, particularly those on sites devoted to personal finance, tout the benefits to helping kids gain an early grasp of financial literacy. When done right, they argue, teaching kids to manage their own money, to earn, spend and save […]

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National Financial Literacy Month: Do You Know How to Calculate Compound Interest?

Man improving his financial literacy

Suppose you owe $1,000 on a loan and the interest rate is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?*

If you don’t know the answer to that question, you’re not alone. Nearly two-thirds of Americans can’t pass a basic financial literacy test with questions about interest rates, mortgages and economic trends, according to the Financial Industry Regulatory Authority’s (FINRA) Investor Education Foundation.