Why Are So Many Americans Financially Dumb?

Written by Valerie Mills


Yeah, we are a nation of financial dummies.

1. Look at allrepparttar worthless get-rich schemes onrepparttar 112063 Net and TV. These ads exist BECAUSE people are buying.

2. Watchrepparttar 112064 confused look onrepparttar 112065 cashier’s face when you hand over extra coins AFTERrepparttar 112066 register displays your change.

3. Witnessrepparttar 112067 people standing in line overnight forrepparttar 112068 privilege of “25% savings.” Aren’t they waiting to SPEND money?

If you’re a non-believer, read these statistics:

1. According to fool.com, “68% PER CENT of graduating high school seniors surveyed byrepparttar 112069 Jump$tart Coalition for Personal Financial Literacy failed a personal finance test in 2002, compared with 44% who failed in 1997.”

2. The U.S. Public Interest Research Group states that “40 percent of college students are graduating with unmanageable levels of student loan debt, and half of those have an average credit card debt of $3000.”

3. Near retirement age baby boomers have saved only 12% of what they think they will need for retirement.

THE REASONS WHY?

The U.S. Public Interest Research Group attributesrepparttar 112070 debt issue to rising costs.

The deputy assistant secretary for financial education atrepparttar 112071 Treasury department testified beforerepparttar 112072 House, "The downstream, adult problems of rising bankruptcy rates, low savings rates and misuse of credit can all be traced upstream to how our schools FAIL TO adequately prepare children for their financial futures."

LARRY, MOE AND CURLEY INVESTMENT BROKERS

Written by Al Thomas


LARRY, MOE AND CURLEY

by Al Thomas

Larry, Moe and Curley were sitting in their favorite restaurant just off Wall Street having their usual 3 martini lunch and were discussing repparttar day’s events and their client portfolios. Larry:”I had 12 calls this morning from customers wanting to know whyrepparttar 112062 market was going down”. Moe: What did you tell them?” Curley: “Yeah, what”, taking another gulp of his libation. Larry: “You know,repparttar 112063 usual. This is a normal correction and not to worry. I am watching your account. The market always comes back.” Moe: ”That’srepparttar 112064 same BS I tell them.” Curley: “ I have more than 300 accounts and I can’t watch them except my 5 big traders. Who cares aboutrepparttar 112065 others anyway? My company won’t let me tell them when to sell their stock if it starts down and they believerepparttar 112066 old saw about ‘hang in there forrepparttar 112067 long haul’. I blew out of all my stocks last week. Thank goodness. The market has dropped 300 points since then. Moe: “It would be better forrepparttar 112068 customers if our company would let us tell them to use stop loss orders." Larry and Moe, shouting in a single voice: “Don’t say that or we’ll get fired”. They both bonk him onrepparttar 112069 head spilling his drink. “Nyuk. Nyuk.” Yes, it may sound funny, but there is more truth than fiction in that imaginary conversation. Why don’t brokerage companies tell

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