For most students, it’s back to the grind. The school year’s started. Some teachers have already begun assigning homework.
But do Americans get enough practical knowledge in the classroom? In particular, does the average student learn enough about personal finance?
Data suggest most either didn’t learn much (if anything) or are in desperate need of a brush-up.
In its 2017 Employee Benefits Study, Lincoln Financial Group asked U.S. employees where they learned about investing, and half said they learned about it on their own or never learned about it at all.
What’s more, many workers reported that all their knowledge about financial matters—whether money or benefits—was self-taught.
“It’s never too late to increase your knowledge base on important topics like retirement planning, college savings and paying down debt,” Colleen Bowler, president and founder of Strategic Wealth Partners and a registered representative of Lincoln Financial Advisors, said in a statement.
“When consumers have a good understanding of these issues, they feel more empowered to make decisions and create a holistic financial plan for their future,” she added, something study results found many have yet to do.
Half of employees indicated that they don’t have a formal financial plan and one in five said they don’t have a plan of any kind.
In light of the findings, 401k plan advisors and employer-sponsors can pass along three back-to-basics tips to help employees make the grade when it comes to personal finance:
- Determine goals – Take the time to create, update and track financial expenditures. Goal-setting is critical to financial success, and this process will help prioritize spending.
- Do homework – Gather all relevant financial materials. Sit down and assess your current financial state and build a plan for the future. Consider a financial professional to help tailor a plan to your specific situation.
- Stick to the plan – Once a plan is in place, stick to it. Sometimes people lose sight of financial goals during the summer vacation months. Back-to-school season is a good time to stabilize schedules and get back on track with financial game plans.