APMacro: Personal Finance Knowledge

images111   Americans got a report card on their financial literacy and the average grade was an “F.” In a survey, Americans scored an average 42 percent on a 14-question test of basic knowledge of personal finances. Two-thirds falsely believe there is “an organization that insures you against losing money in the stock market or as the result of investment fraud.” Another 45 percent falsely believe diversification is “a guarantee” investments will do well even if the stock market falls. And 63 percent do not understand the basic concept of inflation. High school seniors did even worse on a separate personal finance quiz, with 82 percent failing questions on issues like interest rates, savings, loans, credit cards, and calculating net worth.

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