1 / 25

Economics and the Personal Finance Domain

Economics and the Personal Finance Domain. One Way to Plan for Retirement. The Problem of Economic and Financial Literacy. Bankruptcy Rates by County. Bankruptcy Rates, GA. Why Is Saving and Investing Education Important?. Increasing Consumer Responsibilities.

rose-tate
Download Presentation

Economics and the Personal Finance Domain

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Economicsand thePersonal Finance Domain Georgia Council on Economic Education w w w . g c e e . o r g

  2. One Way to Plan for Retirement Georgia Council on Economic Education w w w . g c e e . o r g

  3. The Problem of Economic and Financial Literacy... Georgia Council on Economic Education w w w . g c e e . o r g

  4. Bankruptcy Rates by County Georgia Council on Economic Education w w w . g c e e . o r g

  5. Bankruptcy Rates, GA Georgia Council on Economic Education w w w . g c e e . o r g

  6. Why Is Saving and Investing Education Important? Georgia Council on Economic Education w w w . g c e e . o r g

  7. Increasing Consumer Responsibilities • Over 92% of pensions today are defined contribution plans, not defined benefit plans. • Over one-third of college students have a credit card before they enter college. Georgia Council on Economic Education w w w . g c e e . o r g

  8. The Financial World Has Become More Complex • The Internet has increased the number of financial services offered to consumers. • Credit-scoring technology has improved. • There has been an increase in the number of financial products that are offered. Georgia Council on Economic Education w w w . g c e e . o r g

  9. People Are Involved in the Financial Markets • Millions of small investors have increased their net worth by participating in the stock and bond markets. • Millions of other investors depend on income from owning stocks and bonds. Georgia Council on Economic Education w w w . g c e e . o r g

  10. Are FamiliesFinancially Fit? Results of the Survey of Consumer Finances published in the Federal Reserve Bulletin, January 2003 Georgia Council on Economic Education w w w . g c e e . o r g

  11. Family Income andNet Worth • Median family income adjusted for inflation rose 9.6% 1998-2001. • Median family net worth rose 10.4% 1998-2001. • The number of families holding corporate equities directly or indirectly rose from 1998 to 2001. • Families are saving somewhat more today than in the past. Georgia Council on Economic Education w w w . g c e e . o r g

  12. Percentage of Families Who Saved(Federal Reserve Bulletin, 2003) Georgia Council on Economic Education w w w . g c e e . o r g

  13. Top Reasons for Saving (Federal Reserve Bulletin, 2003) Georgia Council on Economic Education w w w . g c e e . o r g

  14. Value of Top Financial Assets of All Families(Federal Reserve Bulletin, 2003) Georgia Council on Economic Education w w w . g c e e . o r g

  15. Warning Signs There are, of course, signs of financial danger. Georgia Council on Economic Education w w w . g c e e . o r g

  16. Unbanked Households (Federal Reserve Bank of Chicago) • About 10 million households are unbanked. • Over 57% of unbanked households are minority households. • About 37% of African American households are unbanked--they have no checking or savings accounts. Georgia Council on Economic Education w w w . g c e e . o r g

  17. Have You Seen Places Like This? Georgia Council on Economic Education w w w . g c e e . o r g

  18. Non-Mainstream Financial Services • Unbanked households depend on: • Check-cashing outlets • Short-term lenders • Pawnshops • Payday loans • Rent-to-own stores • Unbanked families pay higher fees for using these financial services and face higher risk losses due to dealing in cash. Georgia Council on Economic Education w w w . g c e e . o r g

  19. People who are unbanked tend to: Be of lower income Be younger Have less education Be employed People who are banked tend to: Have a credit card Be older Who Is Unbanked? Georgia Council on Economic Education w w w . g c e e . o r g

  20. High School Students • Most 18-year-olds can obtain credit cards in their own name. • Credit-card companies have become more aggressive at marketing to young people. Georgia Council on Economic Education w w w . g c e e . o r g

  21. College Students GAO, 2001 • Two-thirds of college students have a credit card; the average is 3 cards per student. • About 64% pay off the balance each month. • The average credit-card debt for students who carry a balance is $2,200-$2,800. • In 2001, 100,000 people under age 25 filed for bankruptcy, 6.9% of all bankruptcies, an increase of 51%, 1991-1999. Georgia Council on Economic Education w w w . g c e e . o r g

  22. Financial Education • In recent years, financial education has gained attention from many groups: • Federal Reserve System • Banks • Consumer groups • Government agencies Georgia Council on Economic Education w w w . g c e e . o r g

  23. It’s Hard to Learn What You Are Not Taught • Financial education is a growing national priority. • Stock market simulations and games are very popular. • But young people can’t learn financial skills unless they are taught explicitly. Georgia Council on Economic Education w w w . g c e e . o r g

  24. Financial Education (Federal Reserve Bulletin, 2003) Several studies of financial education programs, especially those with specific objectives such as maintaining a mortgage or increasing savings, have succeeded in improving financial behavior. Georgia Council on Economic Education w w w . g c e e . o r g

  25. Why Saving is Important! Georgia Council on Economic Education w w w . g c e e . o r g

More Related