Just 4% in US Demonstrate Financial Literacy

Financial literacy in the US is already low and declining, with many unable to understand concepts like inflation or compound interest.

That’s according to a report in the Financial Times on Sunday (November 20), citing research by financial industry regulator FINRA. In 2009, the average person who responded to FINRA’s financial literacy survey could answer three out of five questions, the report said.

Last year, that number dropped to 2.6 questions, with only 4 percent of respondents able to find the correct answer to all five questions.

The numbers are relevant as consumers grapple with record inflation, forcing them to burn out and scramble to reset household budgets.

Also Read :  62% karyawan memotong tabungan mereka karena kekhawatiran tentang ekonomi

In an interview with PYMNTS’ Karen Webster earlier this month, Banyan CMO Andrea Gilman and Copper CEO Eddie Behringer said financial institutions (FIs) and fintechs can turn item-level data into new customer engagement opportunities , because the offer matches the payout. This same information can help families manage cash flow more effectively.

This is especially useful for members of Generation Z, as both they and their parents see the value in payment tools that can help them manage spending and build financial literacy.

Also Read :  Kesenjangan Perceraian: Masalah Pensiun Unik untuk Wanita Di Atas 50

“It’s really the first generation that’s been hypersensitive to the missteps of past generations,” Bellinger said in an October conversation with Webster, reflecting yore’s spending habits. “[They think] It’s cool to be smart about money,” he added.

Behringer said fintechs like Copper — which offers young consumers parent-supervised banking services such as personalized debit — are also “data-ready” and hope to use this receipt-level information to steer households toward A Healthier Financial Lifestyle. Copper told Webster that merchants will also do a good job of using item-level information to provide targeted and personalized offers to these young consumers, whether they shop online or offline.

Also Read :  Apakah Anda mencari hipotek online? Sekarang butuh waktu lebih lama untuk menemukan harga terbaik

Teenagers and Gen Z “vote with their money. They have awareness and affinity for the brands they buy and the products they buy,” Bellinger said.

How consumers can pay online using stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns give other customers pause. For “How We Pay Digitally: Stored Credentials Edition,” in partnership with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to analyze consumers’ plight and reveal how merchants are winning over boycotts.

Source

Leave a Reply

Your email address will not be published.