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Hi everybody I'm -- Obama you're watching fox extra you know a lot of Americans struggle to manage their finances.
To keep them in check in some cases it's -- out of your hands but some people just need someone to teach them the basics how to start planning and saving for the future joining us today.
Stephen lady whose author of the money plant which addresses the lack of financial literacy among Americans.
And why are Americans so financially illiterate.
It's because only four states teach any financial knowledge and grade school and high school.
So most people are going to college -- very rudimentary.
Understanding of what they need -- in life in the way of finance.
So American financial literacy at this point in time is really at a low we have a millennial generation that's pretty much lost.
And so let's through this this is it a graphic that we have that outlines a couple of the basic points here and and I just found this amazing three and five people do not have a budget.
Two in five had no retirement savings at all to -- five carry credit card debt.
13 don't pay their bills on time that's according to it's a survey.
Conducted just this year by Harris Interactive I think people who are operating without a family budget or personal budget that just seems like you're out there.
Without a net.
Well I mean from my point of view when my two.
Children who are professionals one's a doctor once a lawyer came back from graduate school I discovered they didn't know how to balance a checkbook.
And they didn't know what a budget was so I put together the money plan.
To actually be a step by step guide a primary -- if you will for financial literacy.
And they had started using it in their happy they have.
Give us some basics of the money plan what's what sort of the most important thing.
And -- people should should know about while the money plan is based on three principles the first principle is that you have to be safe and secure in what to invest.
The second is a concept called cash flow.
Cash flow is the amount of money you have running through your hands.
And you want -- always increase that over your career and if you save you will be increasing your cash flow.
And the last part of course is being informed about what to invest in you.
That's I want -- ask you because you were talking about the importance of putting money away from an early age where do you put that money.
Very good question.
In general -- favor putting money in bonds and bond like instruments because.
The stock market is kind of a roller coaster.
And over the long term especially if we look back ten years now people who invested in the stock market had made nothing.
They're just about even.
Whereas people who had bought bonds of various kinds and they're all described in the book.
Had that cash flow increase and they are continuing.
To move towards wealth independence.
So most money I I would push towards.
Bonds and buying them well.
There's a lot of great information in the money plan.
Creating wealth independence for a secure future Stephen.
Dot com and that's it for fox extra thanks very much for coming and thank you Rick -- -- out thanks for watching everybody.
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