Summary of The No. 1 Personal Finance Lesson to Take Away from the Coronavirus

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The 2020 annual study by the TIAA Institute and the Global Financial Literacy Excellence Center reveals that Americans continue to receive a “failing grade” in financial literacy. According to this timely article from CNBC editor Eric Rosenbaum, the survey underscores the need for greater financial education, starting at a young age. As the negative economic effects of the coronavirus pandemic continue to unfold, it’s now become more important than ever that many more Americans acquire proper money management skills.

About the Author

Eric Rosenbaum is an editor at CNBC, specializing in financial and business journalism.

 

Summary

Many Americans assess risk more poorly than they do any other aspect of their financial lives.

Due to the novel coronavirus pandemic, economic volatility is on the rise. Alas, many Americans appear ill-prepared for the personal finance challenges they may face as a result of this upheaval. The 2020 annual study by the TIAA Institute and the Global Financial Literacy Excellence Center reveals that Americans continue to receive a “failing grade” in financial literacy.

First instituted in 2017, the joint survey identifies risk assessment as the weakest area in Americans’ financial knowledge. While people may think of risk solely in connection with the stock market, study co-author and economist Annamaria Lusardi argues that, in truth, preparing for the unexpected is important for every part of life.

Take, for example, the probability of your car breaking down: Having to get major repair...


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