Well, are you? A new study by Texas Tech University has concluded that Americans are less literate about all things money after age 60, and our literacy only continues to decline thereafter. The scores on a test measuring knowledge of money matters fell approximately two percent (2%) each year, beginning after age 60. What’s worse? The “high” score from which scores begin to fall is only a whopping fifty-nine percent (59%) correct!
Yes, many of us will laugh off the results of this study, “knowing” it can’t possibly be attributed to us. Unfortunately, that’s what we need to consider the most. Our confidence in our financial decision-making abilities tends to rise with age and “experience.” However, this study tends to show that age and experience do not necessarily correlate to better decision-making capacity, due to the decline in our cognitive abilities.
Still not convinced? Read more about the study and perhaps even take a money quiz created by MarketWatch to find out how you stack up against others in your age group . . .
Money Quiz from MarketWatch