Lack of Financial Literacy Can Cost Americans Thousands

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By Javier Simon

The benefits of compounding earnings on investments are common talking points when it comes to encouraging people to save for retirement through employer plans or individual retirement accounts (IRAs). However, a lack of financial knowledge can also have a snowball effect that causes money to deteriorate rather than accumulate.

According to the latest study by the National Financial Educators Council (NFEC), 28.8% of Americans at least 65 years old reported that lacking knowledge about personal finances caused them to lose $30,000 or more in their lifetime. While this is typically considered retirement age today, the detrimental effects can become much worse as studies show that Americans are concerned about funding living longer and many are choosing to retire later, often to negative results.

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