Are We ill Prepared for Recession?

[This post is written and copyrighted by FIRE Finance (]

A survey for MSN Money and the National Foundation for Credit Counseling finds that few of us i.e. Americans, possess the basic financial skills or resources to cope with a recession. Now that is scary!

It seems that most of us do not have the requisite money management skills. Well, like another skill, we've got to learn it and then practice it in our daily life to get a hold over the basics. We feel that the best way to develop a skill is to get started early. That means we should start introducing lessons on personal finance in high school. Financial literacy is a must to do well in life.

Here are some of the key findings of the survey:
  • A significant number struggle with mortgages and the complexity of buying a home
  • Millions have serious difficulties paying bills each month, most notably Generation Y
  • Only a minority keep close track of expenses and spending
  • Savings and emergency funds are lacking
  • Many Americans are under insured, Latinos are at higher risk
  • Most haven't ordered a credit report
  • Parents and home the biggest influences on financial education
  • Americans worry about future income growth, the Midwest has the greatest concerns

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