Recently (as of this post), the National Financial Educators Council (NFEC) conducted a survey that asked American adults to estimate how much money they had lost in 2024 due to lack of financial knowledge.

You can read the post here – Financial Educators Council Post

A total of 1,200 people responded to the survey, and the respondents average amount from their estimated answers was $1,015.

Now, I want to make sure we do highlight this information. If the average, per household, was truly $1015, and those households gained the financial knowledge they needed to stop that $1,015 a year money loss, and then invested that savings each year for 20 years (with a 7% net return), they would add $45,523 to their net worth. After 30 years of investing that savings, they would have added $102,589 to their net worth. And if the average 40 year old couple used that knowledge to save themselves that cost until their death beds (we will say the age of 90 for the last spouse based on close estimates of life expectancy), they would add $441,510 to their net worth. Becoming financially literate and saving that amount each year can be huge for the average person. Most households don’t have a net worth of $441,510, period, let a lone from extra savings the created by being financially literate.

So, even if these numbers were correct, please, for the love of your future, gain more financial knowledge so you don’t waste that money!!!!!! Also, if you want, you can do it for the love of me pulling less of my hair out while trying to help people make good choices.

But, this study does actually show something more, and that is the degree of misunderstanding people really have on how much money they are losing through their financial illiteracy. The average American has a credit card balance (that does not get paid in full each month) of $5875 according to recent (end of 2023) statistics by ListWithClever – Personal Finance Statistics .

The average interest rate on credit cards currently (start of 2025) is around 23% and up. That would mean that average American is paying $1350 a year in credit card interest, based on that balance and interest rate. That one calculation alone is over the $1015 from the people in the study who estimated their cost of financial illiteracy. And that doesn’t count credit card annual fees, other loan interest costs (car loans, mortgages, student loans, personal loans, etc.), bank fees, investment fees, lack of investing activity that produces opportunity costs, unnecessary taxes paid by most Americans, and much more. If you ask me, the average American household likely loses closer to $5000 to $7000 a year due to the lack of knowledge around personal finance. And to be really truthful, it could be more than that.

Even if we played with the low end of that spectrum ($5000 a year), over 20 years (also with 7% net return) that household could have over $200,000 more in net worth. Over 30 years, $500,000 more in net worth. And average 40 year old household over a close example of life expectancy time frames, well over $2,000,000 in net worth, more.

If we can push anything in this article, it is to please become more financially educated. Not only could that money have gone to helping you/them retire comfortably and be financially free, it could have gone to increasing your/their life being better lived (I’m talking paying for/creating more and better life experiences). Money wasted is life less lived. Learn how to not give your money away unnecessarily. You can do that by being better educated about money (crazy huh!).

Want to be better educated? Read more of these posts, ask for coaching, take courses, and more.

What post should you read next? No idea. But here is one thrown in for simplicity of you not having to choose. And below that, enjoy a wild Ocean Art picture.