Demystifying financial misinformation is a tough job, but somebody’s got to do it.
Half of Americans do not make consecutive contributions to their 401(k)s, reported First National Bank of Omaha in its 2018 “Financial Literacy and Lifestyle Survey.”
Those Americans were between the ages of 18 and 60, signaling to the bank that this is a problem across all age groups.
The bank, a subsidiary of First National of Nebraska with $21 billion in assets, surveyed more than 1,000 Americans age 18 and older from various backgrounds to study the state of American financial literacy.
Only 19 percent of participants believed they were very financially literate, while 52 percent believed they had a moderate grasp of personal finance. Others responded that they barely or did not understand personal finance.
The study also found that 46 percent of Americans still think their credit score will drop if they check it. The bank also reported that 24 percent of participants check their credit score monthly while 17 percent check every three months, 13 percent every six months, 14 percent once a year, 14 percent once every few years and 18 percent never.
When First National Bank of Omaha inquired about participants’ earliest forms of financial education, it found close to half did not have parents who taught them about personal finance. Yet most participants (94 percent) agreed that financial literacy was imperative for the rearing of their children or future children.
“While there were findings that raised some concern, we were pleased to find out just how many of today’s parents are prioritizing teaching their kids about personal finance,” said Jerry O’Flanagan, the executive vice president of the consumer banking group at First National Bank of Omaha.