Worcester Business Journal

wbjournal.com | October 14, 2024 | Worcester Business Journal 15 ty to learn how to become a bank teller and service their peers and teachers. Selected as an elective, more than 70% of the class' curriculum is based on financial literacy covering check- ing and savings accounts, balancing checkbooks, credit cards, and even auto loans, McGovern said. Financial first steps Financial literacy is a necessary piece of the puzzle, but it's certainly not the main objective for Terra Oliveira, director of financial empowerment at Worcester Community Action Council, a nonprofit working to bolster econom- ic self-sufficiency. "Financial literacy is the base level of financial empowerment," said Oliveira. "Financial literacy is required if I'm go- ing to be achieving my financial and life goals. But it's step one, and we wanted to do so much more here." Financial literacy is understanding the rules of the game while empower- ment is about recognizing that money is a resource to achieve one's goals in life as opposed to money being the goal, she said. In an effort to boost financial liter- acy and health, the ABA Foundation launched a five-year goal in 2023 to help 5 million people across the coun- try achieve financial stability by 2026. "Financial literacy on its own is not going to solve the economic challenges that people are dealing with, but it is a necessary part of a comprehensive response, a comprehensive approach to address these needs," said Torrico. More than 70% of the country is not financially healthy, according to a September study released by the Finan- cial Health Network, a Chicago-based financial resource nonprofit, which defines financial health by eight indica- tors, including spending compared to income, amount of liquid savings, and status of manageable debt. B A N K I N G & F I N A N C E F O C U S Financial problems Debt prevents adequately addressing other financial priorities Could not come up with $2,000 for an unexpected need Do not have one month of non-retirement savings (if nonretired) Not confident in retirement income prospects Spend 10+ hours per week on financial issues Financial wellness by sex, race, and generation All U.S. adults 27% 30% 39% 41% 20% Men 26% 28% 34% 39% 20% Women 28% 32% 43% 43% 21% Asian 17% 14% 19% 36% 12% Black 35% 42% 54% 40% 29% Hispanic 37% 38% 52% 50% 27% White 24% 27% 33% 39% 18% Gen Z 23% 41% 50% 54% 22% Millennials 36% 35% 42% 49% 28% Gen X 35% 29% 34% 47% 23% Baby Boomers 18% 23% 22% 25% 14% Silent Generation 10% 18% N/A 16% 9% Source: TIAA Institute-GFLEC Personal Finance Index (2024) Continued on next page

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