Financial Literacy Focused on in April

Networks Financial Institute Outreach Director David Godsted says Indiana has a high rate of bankruptcies and foreclosures. He says that’s mainly because financial literacy levels are low. Godsted says low financial literacy levels make it difficult for Hoosiers to make sound personal financial decisions. He says that affects their health, their families and even their jobs.

Godsted says financial literacy can mean different things at different ages. He says adults must make financial decisions about auto loans, make the right decisions about mortgages and invest in 401-K plans. For children, Godsted says it comes down to goal setting. That can include saving their allowance to buy something big that they want, understanding the value of money and what it means to work for pay. He says these are lessons that children will use on a daily basis when they grow up.

Godsted says low financial literacy rates have a huge impact on the financial services industry. He says Americans that default on mortgages and credit card payments directly affect the industry. However, even Americans who are financially literate are impacted because they must pay higher rates to pick up the slack for borrowers at higher risk.

Networks Financial Institute will host a Financial Literacy Conference for kindergarten through 12th grade teachers on April 26 in Indianapolis. A survey on financial literacy levels of high school seniors in Indiana will be released at the conference.

The Indiana Financial Literacy Coalition will also host a financial fitness fair April 30.

Source: Inside INdiana Business