Timara Crawley-Pratt
Baltimore Watchdog Staff Writer
Have you ever felt like you were behind in the financial game? Not having the same level of knowledge as your peers. What is the gap between small institutions & the more prominent companies like the federal banks? Where and what is the missing information that most Americans are missing?
M&T Bank has financial literacy classes for small, started companies or organizations just getting themselves off the ground. This program was designed to help close the gap and give back to the community. Demographics play a role in the need for knowledge shared in different urban communities nationwide. There is a disparity in financial literacy rates across racial and ethnic groups in the United States, with Black, Hispanic, and Native American populations tending to have lower financial literacy rates than White and Asian populations.
This lack of financial literacy creates an environment where there is an endless cycle of financial struggle within family units. While other vital economic factors play a significant role in the financial well-being of Black and brown families, financial illiteracy is evident in the wide gap of socio-economic disparities between black/brown families and their white counterparts.
Lack of financial literacy costs 15% of adults at least $10,000 in 2022. Here is how the rest fared. According to a new report, the share of people who said not being financially literate cost them more than $10,000, up from 11% in 2021. Most respondents say it cost them under $500, if at all. Budgeting is a critical first step as you build your financial literacy to learn healthy spending habits. The three Cs in finance: Character, capital (or collateral), and capacity make up the three Cs of credit.
Tamika Bybee has worked in higher education finance for over 20 years as Associate Vice President of Enrollment Services for Howard Community College. “I had to learn many things on my own through trial by fire. Since financial literacy in K-12 in most states is not a part of the curriculum, many people miss learning about basic budgeting for everyday life; a major component of financial literacy and wellness is knowing how credit works and how it can impact your ability to purchase a home, among other things”- said Bybee.
Merging the gap with the youth from K-12 is a start to help bridge the gap and get the information out there.
Resources:
https://www.capitalone.com/learn-grow/money-management/financial-literacy/