The Price Of Financial Illiteracy? Now We Have A Number

By Dan Kadlec

January 9, 2018

Cost of financial illiteracy

How much does financial ineptitude cost households? Last year, the average family missed out on $1,171, according to the National Financial Educators Council. This is based on a survey where individuals were asked to estimate their losses due to financial illiteracy.

The figure could be off by quite a bit, given that many people don’t know how much they don’t know about money. Still, the typical adult clearly understands that they do not understand enough to avoid money mistakes. One in five believe their money mismanagement cost them as much as $2,500 last year while about half of those put their losses due to financial illiteracy at higher than $10,000. Some 60% believe their losses were contained to less than $500.

Over their lifetime, a third said they had lost more than $15,000 due to financial inability and a quarter put their lifetime losses at more than $30,000, according to an earlier survey. A third believe their lifetime losses due to financial inability were contained to less than $1,000.

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Posted in Adults on January, 2018