We all know that an education creates a pathway to success. Those who attain a higher level of education typically earn more throughout their lifetime. For instance, according to the “Optimal Financial Knowledge and Wealth Inequality,” research paper, at age 65 the median high school dropout has accumulated less than half as much wealth compared to high school graduates, and college graduates have accumulated twice as much in retirement assets compared to high school graduates. Now, new studies are showing that people who increase their Financial IQ increase their chances to generate wealth. This makes sense. The more we learn, the better prepared we are to earn. Now, I’m not saying we all run out and get PhD’s. Within the findings of the aforementioned report, the authors came across an interesting factor — financial literacy is connected to better financial and investing decisions and the accumulation of larger amounts of wealth. In essence, those of us who are less financially savvy tend to rely on Social Security as opposed to building our own fruitful retirements. How can we change the tide of financial inequality? By taking an active role in our financial lives. To learn more, please visit “Why Aren’t You Raising Your Financial IQ?”
Until next time, I’m Thomas Fox for Cambridge Credit Counseling Corp.