Financial education helps people learn about savings, credit, and loans. It also helps prepare people for life changes and weather the unexpected. Financial knowledge is essential when planning for retirement.
So, how prepared are adults in the United States for their retirement? The National Endowment for Financial Education (NEFE) conducts polls on key issues, like retirement savings, that affect a personâs financial past, present, and future.
\Hereâs what we have learned over the past year:
- In a financial well-being poll conducted during the COVID-19 pandemic, 85% of respondents confirmed that some aspect of their personal finances was causing them stress. For 31% of respondents, that concern was âhaving enough saved for retirement.â
- In that same poll, 70% said they made financial adjustments due to the COVID-19 pandemic. Of that group, 27% increased contributions to their emergency savings, retirement savings, or other savings or investments. In comparison, 21% tapped into emergency savingsâor borrowed against retirement savings.
- In a poll about financial education mandates, 80% of adults said they wish they were required to complete a semester- or year-long course focused on personal finance education during high school. Also, 88% think their state should require a semester- or year-long course for high school graduation.
- In that same poll, 84% of those approaching retirement age said âspending and budgetingâ should be taught in schools.