Why Financial Literacy is So Important

Banks and other institutions are inundating consumers with credit opportunities—the ability to apply for credit cards or use credit checks to pay other credit balances—and without the proper knowledge or checks and balances, it is easy to get into financial trouble. In past generations, cash was used for virtually every purchase. Today, cash is rarely used. The way we shop has changed as well. Online shopping has become the top choice for many younger shoppers, creating ample opportunities to use and overextend credit, an all too easy way to accumulate debt, fast. Many of these consumers have very little understanding of finances, how credit works and the potential impact on their financial well-being for many, many years. In fact, the lack of financial understanding has been signaled as one of the main reasons behind savings and investing problems faced by many Americans.

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