Financial Illiteracy in America

We have a problem in America. That problem being that so many Americans do not know the fundamentals of finance (personal or otherwise).

Here's some links regarding Financial Illiteracy.

• Drew Brees of the New Orleans Saints wrote this about financial literacy.



• Author, John Hope Bryant expressed the problems with financial illiteracy as well as some ideas on how to fight the war on financial literacy Financial Literacy as the New Civil Right: Why It Matters to Business in America



• Greater Fools | The New Yorker
  
  
• America's Financial Illiteracy | Forbes



• Even the Government has stepped in by signing into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. Although it doesn't mention Financial Literacy verbatim, evaluating credit and lending practices, permanently increasing protection of bank deposits, providing more transparency and accountability for investments and related services, addressing risky banking practices, and monitoring systemic risk is a SOLID step in the right direction.

What is Leverage?

Leverage.

We all have heard about it. But what is it?

To some, it's owning a significant amount of information that the other negotiating party involved doesn't have.

To others, it's a more financial based system where individuals and/or companies find borrowed funds for investment purposes.

A simple example of financial leverage: