Stop! Before you read this article, take a guess at how much money you lost (and didn’t save or invest) last year due to your own financial illiteracy? Here at Her Retirement, we want to take our own survey on this question so feel free to go to this link and let us know the number, and then feel free to read the rest of this article.
Take the ONE Question Survey here
During the past year (2024), about how much money do you think you and other people, on average, lost because you/they lacked knowledge about personal finances? It may be difficult to pinpoint exactly, but a new survey sheds light on the high cost of financial illiteracy in America. According to the National Financial Educators Council (NFEC), Americans lost an estimated $1,015 per person on average in 2024 due to not having the financial knowledge to manage their personal finances effectively.
The survey, which was conducted between December 26th and December 30th, 2024, asked 1,200 U.S. residents from across the country to estimate how much money they lost because they lacked financial literacy. The results are both startling and eye-opening.
Key Findings: The High Cost of Financial Illiteracy
The respondents’ answers revealed that financial illiteracy was costly. On average, participants believed they had lost $1,015 throughout the year due to decisions stemming from a lack of financial knowledge. If we apply this average loss to the entire U.S. adult population of approximately 240 million, the total cost of financial illiteracy in America in 2024 amounts to more than $243 billion.
This staggering figure emphasizes the profound impact that a lack of financial education can have on individuals and the economy as a whole. From missed investment opportunities and unoptimized budgeting to costly financial mistakes, the consequences of not understanding personal finance can be far-reaching.
The Methodology Behind the Survey
The poll was conducted using Organic Sampling, a methodology designed to ensure a diverse and representative sample. By utilizing Random Device Engagement (RDE), this approach delivers a framework of randomized digital interactions with participants, reducing bias and helping to achieve a more accurate reflection of the financial challenges faced by Americans.
Why Financial Education Matters
These findings underscore the importance of financial literacy. In an increasingly complex financial world, it’s essential for individuals to understand the basics of budgeting, saving, investing, and planning for retirement. Whether you’re managing everyday expenses or preparing for long-term financial goals, having the right knowledge can make all the difference in securing a healthier financial future.
Tech-Powered Platforms for Financial Literacy and Retirement Wellness
As the need for financial literacy grows, platforms like Her Retirement and Retirement Solved are stepping up to provide essential education and support for different groups of people.
Her Retirement focuses specifically on empowering single, divorced, and widowed women, helping them navigate the complexities of retirement planning with a comprehensive approach and software to financial wellness. The platform offers coaching, courses, and a community for women to take charge of their financial futures and ensure a secure and fulfilling retirement.
On the other hand, Retirement Solved is tailored to accomplished individuals, professionals, small business owners, and employers who want to implement retirement wellness programs for their employees. By addressing the needs of both individuals and organizations, Retirement Solved helps ensure that everyone is well-prepared for a financially stable and rewarding retirement.
Both platforms emphasize the importance of financial education, retirement planning, and wellness, empowering individuals and organizations to make informed decisions and avoid the costly consequences of financial illiteracy.
If you’d like some help improving your literacy or you’d like to find out more about Retirement Solved @Work employee retirement wellness, go to: Employers – Retirement Solved
Email me at: lynnt@herretirement.com with any questions or help.