Final Thesis - The Effect of financial literacy on investment decisions. Changes can be promptly communicated to employees in writing in a simple format, such as a question-and-answer document. Or the young borrower who fails to grasp the long-run consequences of only making interest payments on a credit card or loan? $(document).ready(function () { Sandia Area Federal Credit Union, P.O. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Need help with a specific HR issue like coronavirus or FLSA? Please confirm that you want to proceed with deleting bookmark. Loyalty to a company often depends on the company's consideration for the financial condition of its workforce. Just 8% of those answering Fidelitys quiz guessed this.2,3, Apart from these examples, consider another one at the macro level. Table 4 provides the correlation matrix of the variables used in this study. Schedule a consultation today . Financial literacy equips individuals with a decision-making framework that they can employ when assessing the implications of the different financial options available to them. View key toolkits, policies, research and more on HR topics that matter to you. Your session has expired. According to the latest National Financial Capability Study from FINRA (the Financial Industry Regulatory Authority), only about a third of Americans younger than 40 understand the basic financial concepts of compounding, inflation, and risk diversification.1. on financial literacy. What If FFCRA Expires at the End of the Year? 1 - marketwatch.com/story/should-colleges-require-a-financial-literacy-class-2017-04-03/ [4/3/17], 2 - investopedia.com/news/3-ways-improve-financial-literacy/ [4/21/17], 3 - marketwatch.com/story/most-americans-failed-this-eight-question-retirement-quiz-2017-03-23 [3/23/17]. If it did, the route toward wealth would be clear and direct. In addition, the Federal Reserve, joined by other government agencies, has called on the financial services industry to meet the financial needs of people affected by COVID-19. Statistics aside, think about how a lack of financial acumen hurts peoples chances to build or protect wealth. Another 27% guessed $15,000 (i.e., 50 x 12 x 25, as if interest was not a factor). The U.S. ranked fourteenth in Standard & Poors 2015 Global Financial Literacy Study, with just 57% of the countrys population estimated as financially literate. *The S&P 500 has returned positively in 30 of the last 35 years. Organizations whose HR and finance functions work together to meet the growing demand for financial and compliance training can realize valuable returns on this investment in collaboration. Justy may be reached at 505-256-6070 or Justy.Armijo@cunamutual.com. 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