Financial Literacy and the Cost of Ignorance
Over the last 40 years, Americans have taken on increasing responsibility for their financial well-being, from planning for retirement, to choosing a health insurance plan, to saving for education. Financial literacy, or the ability to use knowledge and skills to manage financial resources effectively, plays a key role. Financial "ignorance" can lead to credit card debt, overwhelming college loans, and even bankruptcy. In this podcast, Annamaria Lusardi explains why it is important to teach students at a young age how to make complex financial decisions. She also describes workplace programs and policy changes that could help individuals learn about managing their personal finances.