Did you know that in 2018:

• 19% of households spent more than their income?
• 46% of individuals lacked an emergency fund?
• 35% of credit card holders paid only the minimum on their credit cards?

In September 2019, the FINRA Foundation released data from its latest Financial Capability Study—one of the largest and most comprehensive financial capability studies in the United States. Among the findings, younger Americans, those with lower incomes, African-Americans and those without a college degree face the toughest financial struggles. More than 27,000 respondents participated in the nationwide study. Conducted every three years beginning in 2009, it measures key indicators of financial capability and evaluates how these indicators vary with underlying demographic, behavioral, attitudinal and financial literacy characteristics—both nationwide and state-by-state.

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Teaching Suggestions:

• Ask students if they spend more than their income in a given year.
• Ask students if they have a rainy day fund. If not, why?
• Ask students if they pay in full when the credit card bill arrives. If not, why?

Discussion Questions

1. What might be some reasons why almost one in five households spends more than their income?
2. Why is it important to have a rainy day fund? Why almost half of Americans lack such a fund?
3. Why is it vital to pay credit card bills in full? What are the costs of paying a minimum balance?