While many individuals may think they have a handle on personal finance topics, there may be some issues related to how well they know what is supposed to be done. Having a strong financial strategy may be dependent upon ensuring that money topics are well understood.
More than half of Americans polled felt that they know their way around personal finance subjects, according to a report from Charles Schwab and Co., Inc. Another 76 percent noted that it would be a challenge for them to reach retirement compared to their parents’ in the past.
Some people had incorrect thoughts on financial topics, which could hamper their efforts to properly secure their financial future. The report noted that 88 percent felt that all debt needs to be removed by the time a person retires, which may actually depend on an individuals’ situation. Another 79 percent explained that felt that they would have no issue securing a job in retirement, but this is not necessarily the case. Jobs can be difficult to acquire at this point of a person’s life.
“People want to make good decisions about money and many believe they’re on the right track with their finances, but often they just don’t know what they don’t know,” said Carrie Schwab-Pomerantz, senior vice president at Charles Schwab and Co., Inc. “These blind spots can lead to missteps that can undermine the best-laid plans.”
Separate report notes Americans may need financial education
There are other financial issues that may need to be rectified among Americans. According to a report from the National Foundation of Credit Counseling, more than 60 percent of Americans don’t have a budget to track their finances.
Americans also were not getting the right ideas about saving money. The report noted that 16 percent of those polled were worried about saving money for a thin time, while the same percentage noted that they were concerned about not having enough money put away for retirement.
“This year’s survey once again confirms what we already know: the need for financial education is great,” said Susan Keating, president and CEO of the NFCC.
Another six in 10 of those surveyed said that they haven’t looked at their credit score in the past year, the report added. Another 65 percent specified that they failed to look at their credit report during that period, as well.