Survey: We Fail Holiday Financial Tests

"The Center for Economic and Entrepreneurial Literacy released the results of the holiday economic literacy survey, which shows that Americans lack basic math and personal finance skills—especially as those skills relate to being financially responsible over the holidays. The national survey conducted this month shows that an overwhelming number of Americans are unable to answer basic financial literacy questions.

The survey showed:
· 65% answered incorrectly when asked how many reindeer would remain if Santa had to lay off 25% of his 8 reindeer because of the bad economy;

· 75% of people thought that it would take 15 years or less to pay off $5,000 in Christmas presents if making the minimum payment on their credit card. In reality, it would take 46 years to pay off those holiday expenses!

· 1 in 3 people did not know how much money a person would be spending on gifts if they spent 1% of their 50,000 per year salary;

· 16% of respondents admitted that they do not expect to have their holiday debt paid off by March 1st, 2009.

"Santa would be well advised to leave “Personal Finance for Dummies” in stockings across the country," said James Bowers, managing director at the Center for Economic and Entrepreneurial Literacy. “Many Americans don’t even have the basic math skills required to balance their checkbook, forget about understanding complicated mortgages or credit card statements."

“This holiday season, it is important that all Americans redouble their efforts to ensure that they have the knowledge to make the best financial choices for their families and their budgets.”
Here's the a link to the full survey released earlier this month."