Consumers with top scores were much more likely than other respondents to have figured out how much they need for retirement, and to have investment accounts other than those for retirement. But 22 percent are still carrying credit card debt from month to month, and 17 percent aren’t certain they could come up with $2,000 in an emergency. (See charts below.)
“Knowledge of the principle is low, and that translation of the principle in knowledge and outcomes can also be improved upon,” said report co-author Annamaria Lusardi, a professor of economics at George Washington University.
“When it comes to personal finance, people have to be proactive,” she said.
People who know more about personal finance are often more likely to seek help, she said. Recognizing a knowledge gap should spur you to educate yourself.
Look to see where you’re currently falling short on money management, said Paul Golden, a spokesman for the National Endowment for Financial Education. That will also tell you where you might benefit from new goals and a refresher on strategies to get there.
“Behavior shifts don’t come easy,” he said. “You have to take time to understand where you are and set reasonable benchmarks for change.”