In our THV Working for You segment, April is just days away and it's Financial Literacy Month.
Linda Tucker with Consumer Credit Counseling Service sits down with THV's Liz Massey. Tucker will be on Today's THV at 6:30 every Monday in April to talk about important financial issues.
These statistics are from 2010. They're from the National Foundation for Credit Counseling.
More Than Half of Adults Still Do Not Have a Budget
However, more adults than ever are tracking their spending habits. Adults with income under $35K are more likely to have a budget and track their spending closely. Americans report that they are spending less (some a lot less) but also admit they would quickly go back to spending as much if not more if their financial condition improved.
30% of adults do not put any money towards retirement
Americans are still not saving for retirement but statistics are showing more are beginning to do some savings. If they don't have savings, about 50% are reporting they are turning to family and friends, 25% are still turning to credit cards - which puts them further in debt and about 25% will not have any means to meet their financial obligations. Young adults and people over 65 report they rarely put money into retirement.
28% do not pay their bills on time
1 in 10 people are receiving collection calls and struggle to pay their bills each month. 67% of people say they are using cash or debit cards now more than they used to. Many households in AR carry at least $10K in credit card debt and are struggling to make monthly payments. Younger adults ages 18-54 report they make late payments or miss payments more that people over the age of 65. By not paying the minimum or missing payments entirely, people are increasing their debt with late fees and additional interest.
65% of Americans do not pull their credit report each year
Everyone over the age of 18 can get a credit report for no cost from www.annualcreditreport.com
78% of adults feel they could benefit from financial literacy advice from a professional
Statistics say most people learn about personal finance at home, with a small percentage saying they learned it in school. Older Americans seem to be more aware of personal finances than the younger generation. Schools started offering some form of personal finance in grades 9-12 this school year. Most schools have incorporated this into their Economics classes and the students will have to complete a semester sometime before graduation. Even though people report they need more knowledge the feeling of embarrassment keeps them from seeking professional advice.
Over the coming weeks, Linda Tucker will be addressing more financial issues with our THV viewers including budgeting, savings, teaching children about money and how to get out of debt.