Bite Club is just one example of how companies, nonprofits, and educators are turning to nontraditional ways to teach adults and students to manage their money - from video games to theater performances to role playing workshops. The initiatives come as the disappearance of traditional pensions makes more US workers responsible for financing their retirements and a growing number of studies find that most Americans, especially those who are younger and poorer, know only a paltry amount about their finances.
Fewer than half of Americans were able to answer two basic financial questions in a study by the FINRA Investor Education Foundation two years ago. And less than a third could answer three questions correctly, even though many gave themselves top marks in math or financial expertise.
“Americans get close to a failing grade when it comes to understanding their finances and financial literacy,’’ said Gerri Walsh, president of the FINRA foundation. “People think they are better at managing their money and better at math than they actually are.’’
At the same time, many academics and government officials warn that Americans’ lack of financial knowledge has real world consequences. Some say the housing bubble was partly fueled by many home buyers taking out loans they couldn’t afford with terms they didn’t understand. And with Americans living longer, it’s increasingly important that workers learn to save.
“Everybody needs some sort of financial education,’’ said Massachusetts Treasurer Steven Grossman.
Last year, Governor Deval Patrick signed a law creating a new nonprofit to raise money to support financial literacy programs, called the Financial Literacy Trust Fund, which Grossman chairs. The state Senate is considering legislation to require public schools to teach financial literacy.
Financial companies, meanwhile, are finding fresh ways to reach people who might find traditional coursework too boring or who would never attend a workshop.
