A Little Knowledge Can Be Dangerous

Someone who has a small amount of knowledge about a topic may state, “I know enough to be dangerous.”  While this comment applies to many things in life, it is particularly pertinent to personal finance.  A survey conducted in the fall of 2017 by Raddon, a division of FiServ quantifies this circumstance.  Of the 1,200 U.S. adults 18 or older who were surveyed, 44% stated they were “extremely” or “very” financially literate.  Yet fewer than 50% were able to pass a financial quiz administered by Raddon and only 6% were able to get a score of 90 or above.  As with many things in life, we are most vulnerable to mistakes when we are overconfident in our abilities.  It would appear that our finances are no exception!