{"id":1796,"date":"2020-06-09T15:09:00","date_gmt":"2020-06-09T15:09:00","guid":{"rendered":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-life\/?p=1796"},"modified":"2024-06-30T13:24:28","modified_gmt":"2024-06-30T17:24:28","slug":"financial-literacy-especially-critical-during-financial-crises","status":"publish","type":"post","link":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-life\/financial-literacy-especially-critical-during-financial-crises\/","title":{"rendered":"Critical Financial Literacy During Crises"},"content":{"rendered":"
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\"Silver<\/figure>\n<\/div>\n

Some 30 million Americans have already lost their jobs due to COVID-19. It is expected that many more face potential unemployment as well. According to a National Endowment for Financial Education (NEFE) survey, nearly 9 in 10 Americans state that the pandemic is creating financial stress. <\/h2>\n

The same NEFE survey found that 75% of Americans are now adjusting their finances in response. It\u2019s times like these when having a good understanding of finances is especially important, and can help alleviate the financial and emotional stress that so many Americans are experiencing now.<\/p>\n

Achieving Financial Literacy<\/h3>\n

It is a sad fact that many Americans do not have a good understanding of financial matters. They don\u2019t understand basic economic concepts and financial terms such as compound interest, inflation, risk, diversification, etc. They don\u2019t know how their credit scores are established, nor do they know the roles of different insurance products, employee benefits and investments. Many are not actively involved in their retirement planning and many do not have professional financial advisors.  There are real repercussions to financial illiteracy.<\/p>\n

When personal finances come under severe pressure as they are now, individuals\u2019 lack of financial literacy leaves them vulnerable to increasing debt, erosion of a retirement plan, and the possibility of losing their homes, filing bankruptcy, and leaving their families destitute. By gaining a good foundational education about basic financial terms, products and planning instruments, and relying on the counsel of experienced professionals, individuals can avoid these devastating outcomes.<\/p>\n

How Brokers Can Help<\/h3>\n

Brokers can play a pivotal role in assisting plan sponsors with raising the financial literacy of their employees\/plan members. Providing educational materials on the different benefits provided, sponsoring workplace financial seminars and offering financial educational materials on a regular basis can be extremely helpful to many workers. These measures can be implemented year-round and not just during benefit enrollment periods.<\/p>\n

Among the topics that could be covered are:<\/p>\n