{"id":42377,"date":"2022-04-29T08:47:34","date_gmt":"2022-04-29T12:47:34","guid":{"rendered":"https:\/\/blogarchive.utc.edu\/news\/?p=42377"},"modified":"2023-08-31T12:01:40","modified_gmt":"2023-08-31T16:01:40","slug":"utc-lecture-highlights-widespread-lack-of-financial-knowledge","status":"publish","type":"post","link":"https:\/\/blogarchive.utc.edu\/news\/2022\/04\/utc-lecture-highlights-widespread-lack-of-financial-knowledge\/","title":{"rendered":"UTC lecture highlights widespread lack of financial knowledge"},"content":{"rendered":"

As the term implies, financial literacy is the ability to read, write and, ideally, talk about money.<\/p>\n

But many don\u2019t know have a working knowledge of the language of finance, which is at the heart of increasing stress among Americans related to everything from paying bills to planning for retirement, said Annamaria Lusardi<\/a> an economics and accountancy professor at George Washington University who kicked off the first Annual Financial Literacy Lecture Series at the University of Tennessee at Chattanooga last week.<\/p>\n

\"Annamaria

Annamaria Lusardi is an economics and accountancy professor at George Washington University.<\/p><\/div>\n

\u201cIt\u2019s not just the lack of knowledge but the consequences of that that are concerning,\u201d Lusardi said during the Zoom lecture for UTC students, faculty and staff hosted by the department of finance and economics at the Gary W. Rollins College of Business. The event was co-sponsored by the Probasco Distinguished Chair of Free Enterprise for Financial Literacy Month.<\/p>\n

\u201cSometimes, the language of finance and economics is intimidating,\u201d said Bento Lobo, who organized the lecture and heads the finance and economics department at UTC.<\/p>\n

\u201cOur personal finance minor (introduced in 2018) focuses on helping students learn the language of finance and economics,\u201d said Lobo, also a UC Foundation Professor and First Tennessee Bank Distinguished Professor of Finance.<\/p>\n

A recent survey<\/a> showed 52% of adults feel more financial stress now than they did a year ago, and 32% of parents reported \u201cnever\u201d talking to their children about household finances–two statistics (among many widely reported in the media) that speak to Lobo\u2019s and Lusardi\u2019s point: Financial literacy is important but elusive to many.<\/p>\n

\u201cIf we don’t make the access to financial education universal\u2026.people will have a lot of difficulties,\u201d said Lusardi, the academic director and founder of the Global Financial Literacy Excellence Center<\/a> who has served as a faculty advisor on financial education for the U.S. and Italian governments.<\/p>\n

\u201cTo address the problem, you need to identify it and to measure it, and so we have spent a lot of time at GFLEC measuring financial literacy and measuring it in the most detailed way,\u201d she said.<\/p>\n

The center has been working with the TIAA Institute since late 2016 to develop the Personal Finance Index<\/a> built on results from surveying adults in eight areas:<\/p>\n