Investment News — Financial literacy is important for financial inclusion
Advisers can help expand financial inclusion by assisting people in understanding essential concepts and developing the skills needed to reach their financial goals
Without financial literacy, the successful use of financial services to manage money becomes impossible. It is vital for the well-being of every consumer and community around the world. How can people be financially empowered if they don’t understand the financial concepts required for money management?
Money management wasn’t always so complicated. In past generations, cash was the primary payment method. Whether you were buying groceries, paying a utility bill or compensating your nephew for mowing the lawn, you could complete the transaction by pulling a few five or ten-dollar bills out of your wallet. As recently as 2015, cash was used 33% of the time, according to the Federal Reserve Bank of San Francisco. Yet a report this April from American Consumer Credit Counseling Inc. found that only 14% of Americans admit to using cash for everyday purchases.