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Financial Education Benefits All

Financial Education benefits everyone. Who can argue that declaration?

A recent Philadelphia Inquirer article by Jeff Gelles takes the topic a step further, declaring everyone benefits from an investment in financial literacy. If you’re not convinced, quiz a random sampling of acquaintances just as the author does at the beginning of the article.

The best part about financial education or any literacy initiative, is that the investment is minimal, the risk is minimal, and the ROI is substantial.

Tim Lee, Raleigh News & Observer
Image courtesy of Tim Lee, Raleigh News & Observer

Financial Literacy Quiz

1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

a. More than $102

b. Exactly $102

c. Less than $102

2. Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After 1 year, how much would you be able to buy with the money in this account?

a. More than today

b. Exactly the same

c. Less than today

3. Please tell me whether this statement is true or false: “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”

Click here to read the rest of the article by Jeff Gelles.