I received an email from a young lady, who stumbled across our website, FinanceWell. She explained that we were acquainted in high school-which spans well nearly two decades and she also described her relationship with money over the span of those years.
Some of the words she used were inconsistent and simply frightening. After a few more exchanges, she proceeded to ask me what was my purpose for starting FinanceWell? I really wanted to give a simple answer, but I also wanted her to understand that the idea of FinanceWell hits close to home for me.
As I set out to overcome my own financial dilemmas, I began to think of many close friends and family members that were going through similar dilemmas as I was; – consumer debts, not enough money, and the list goes on. Suddenly, I began to feel a sense of responsibility to help as many people as I can through the process.
Recently, I stumbled on a study by The Global Financial Literacy Excellence Center (GFLEC) at the George Washington University, in association with PwC, titled The Struggle with Personal Finance. Among other things, the study basically reveals that Millennials have the lowest level of financial literacy. Below is a summary of 8 factors that really threaten the economic aspirations and security of this generation.
- Have inadequate financial knowledge
When tested on financial concepts, only 24% demonstrated basic financial knowledge.
- Aren’t happy with their current financial situation
When ranking satisfaction on a scale of 1-10, 34% were very unsatisfied.
- Worry about student loans
When asked about their ability to repay their student loan debt, more than 54% of Millennials expressed concern.
- Debt crosses economic and educational lines
Among college-educated Millennials, a staggering 81% have at least one long-term debt.
- Are financially fragile
Nearly 30% of Millennials are overdrawing on their checking accounts.
- Are heavy users of Alternative Financial Services (AFS)
In the past five years, 42% of Millennials used an AFS product, such as payday loans, pawnshops, auto title loans, tax refund advances, and rent-to-own products.
- Sacrifice retirement accounts
More than 20% of Millennials with retirement accounts took loans or hardship withdrawals in the past year.
- Don’t seek professional financial help
Even with inadequate knowledge, only 27% of Millennials are seeking professional financial advice on saving and investment.
Clearly, the above statistics are very alarming. As a Millennial, I can truly attest to the validity of the study. I knew that was not something I wanted for myself, love ones, friends or anyone of the millennial generation. Based on my academic and professional experience, I began to help my siblings gain financial knowledge and then the idea of FinanceWell was birthed on the premise that I would be able to empower people of all walks of life to lead a better life.
Our goal at FinanceWell is to help people save money, reduce debts, manage finances, and plan for tomorrow. We empower people from all walks of life to compare personalized offers from multiple vetted lenders and service providers, giving you the power and confidence to improve your financial future.
Our mission is to deliver better finance to all and to promote financial wellness to all people.