Financial literacy falls after the age of 60

A recent study by Texas Tech University has found that Americans are becoming less literate about money after the age of 60, regardless of gender or education.

The study, which tested participants knowledge of investments, insurance, credit and money basics at different stages of life, found that knowledge peaked at age 45-49 but then fell by 2% each year from age 60 (scoring 59%) and declined dramatically after that, with 80+ year-olds scoring a dismal 30%.

The findings are particularly worrying as this is the age that many people are making key financial decisions about social security, medicare and retirements funds. The study also found that confidence in financial decision-making abilities rise with age – suggesting that rather than being older and wiser, people are becoming older, less smart and overconfident!

Source: Marketwatch.com

Nicki

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dbda is a corporate social responsibility consultancy embracing education and safety in the community. We are privileged to work with a large number of blue chip corporate clients, Government organisations, charitable bodies, Institutes and local authorities. We also have a network of schools, professional bodies, associations, universities and partners, with whom we regularly work in collaboration.

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