April is Financial Literacy Month so we are asking “What ARE the financial issues that most Americans are interested in?”
WHEN IT COMES TO LEARNING ABOUT FINANCES, WHAT ARE MOST PEOPLE SEARCHING FOR?
According to an analysis of the most Googled financial topics – most people are interested in debt:
- Student loans are the No. 1 topic on people’s minds: “How do student loans work?”
- Home Loans: “What is a mortgage?”
- Car Loans: “What is a car loan?”
- Payday Loans: “How do payday loans work?”
- 401(k): “What is a 401(k)?”
SEARCHES FOR INFORMATION ON STUDENT LOANS – NOT SURPRISING…
Americans are currently grappling with $1.4 trillion in student loan debt.
WHAT DOES THE GOOGLE ANALYSIS TELL US ABOUT AMERICA’S FINANCIAL LITERACY?
Reinforces a sad truth: Americans aren’t very well-educated when it comes to financial matters. Examples:
- Just 39% of Americans say they have enough savings to cover a $1,000 emergency room visit or car repair.
- When asked to identify key mortgage qualification criteria such as down payment, credit score and debt-to-income ratio, approximately one-half of consumers were unable to provide an answer.
- Some two-thirds of Americans do not participate or have access to a 401(k) plan, according to Census Bureau researchers.
WHAT CAN WE DO ABOUT IT?
- Few states require financial literacy courses in public schools. Tennessee is one of only 5 states that require a personal finance course for high school graduation requirements.
- Financial education starts at home!
- So many concerns would be solved by having a cash reserve. Goal: 3-6 month’s living expenses but start with $2,000 to $3,000 minimum goal.