At Stellar Bank, we’re dedicated to raising awareness about the importance of financial education and empowering our customers to make more informed financial decisions.
What is financial literacy?
Financial literacy is the ability to understand and effectively manage finances. It encompasses budgeting, saving, investing, managing debt, understanding financial products and services, planning for retirement, and protecting yourself against financial risks, such as fraud.
Many Americans lack essential financial literacy knowledge. Recent studies and statistics reveal major gaps in understanding that may surprise you.
- 37% of adults in the United States would have difficulty covering an unexpected expense of $400.
- 28% of Americans reported no retirement savings.
- Only 1 in 3 Americans can answer basic financial literacy questions correctly.
- 69% of adults aged 18 to 34 in the United States reported feeling stressed about their finances.
- $10 billion was lost to fraud in 2023.
- 17.4% increase in credit card debt in 2023
The impact of financial literacy
The lack of financial knowledge can have profound consequences, leading to financial stress, debt accumulation, and inadequate retirement savings. At a national level, financial literacy plays a crucial role in promoting financial stability and growth by addressing socioeconomic disparities and mitigating the impact of economic downturns.
The importance of financial education
Financial literacy empowers people to take control of their financial futures. Whether your goal is to save for a down payment, pay off student loans, plan for retirement, or start a small business, financial literacy provides the foundation for building a secure future. Informed business owners and individuals can make better decisions, leading to financial stability.
We believe in making financial know-how accessible for all. That’s why Stellar Bank’s Financial Learning Center was developed to help meet your goals and thrive. Our series of educational playlists cover a wide range of topics to help guide your business and personal financial decisions. You’ll discover a range of key financial concepts, including:
- Financial Foundations
- Building Financial Capability
- Owning a Home
- Growing Your Small Business
- Preparing for Retirement
- Investing in Your Future
- Small Business Essentials
- Financial Caregiving
Beyond our Financial Learning Center, you can find many free or low-cost webinars, guided programs, and in-person educational events hosted by Stellar Bank, the Small Business Administration (SBA), Federal Deposit Insurance Corporation (FDIC), National Endowment for Financial Education (NEFE), and more.
Fraud protection from Stellar Bank
Fraud awareness and education is a crucial part of your financial literacy journey. Today’s digital tools make it easier than ever for fraudsters to get your valuable personal or business banking information. Stellar Bank is committed to protecting your identity, information, and accounts. With scammers and fraudsters on the rise, read up on the latest types of scams affecting banking activity and learn how to keep your money safe.
We invite you to explore the wealth of the financial literacy resources available to you through Stellar Bank. Contact a Stellar Banker to discuss any banking needs you have and discover how our personal and business banking solutions can help you meet your goals.
Sources: Federal Reserve, National Financial Capability Study, Federal Trade Commission, Experian
