The debt problems among Americans has caused widespread concern over recent years, as despite the economy and other financial issues it seems that many people simply cannot help but get themselves deeper and deeper into debt. A number of different options and solutions have been put to the test in order to try and combat the personal debt problem in the United States and one of the suggestions has been to increase awareness of debt issues through financial literacy training.
According to a recent survey, over 56 percent of people in America said that they had a combined amount of less than one thousand dollars in their checking and savings accounts. The average amount of credit card debt per household comes in at more than $15,000 and more than 50 percent of Americans appear to be living from one pay check to the next. In addition to all of this, in excess of five million people have lost their homes through foreclosure since the global financial crisis back in 2008. All of these figures paint a very bleak picture when it comes to household finances and debt in America, which is why some believe that increased training when it comes to financial literacy is the answer.
A combination of solutions required
According to some officials, if people were provided with more information and were more aware of financial issues, they would be far less likely to get themselves into debt. This is why in the recent budget a further $30 million has been dedicated to providing increased training in financial literacy. However, while this is a move that could certainly benefit people to some degree there are many that believe that it is just one in a series of steps and solutions that are necessary to help combat rising debt problems in America.
According to some reports, there are limitations when it comes to the effectiveness of financial literacy training. Some believe that although education is one of the key parts of improving the finances of individuals there are other factors that also have to be considered in order for the process to be effective. Experts have said that it is also important to remember that factors such as psychology and even community play an important part in motivating people when it comes to improving their financial situations.
The aim of financial literacy training is to try and get people to focus on making money rather than borrowing and spending it according to officials. However, some have said that this is something that financial literacy training alone simply cannot achieve and that there are many different reasons and circumstances that lead to people getting themselves into difficult financial situations. A recent study showed that many people who did well in financial literacy exams were not necessarily in good financial situations while some others whose financial situations were pretty healthy did not score particularly well in the financial literacy tests and tasks that they were given.