McGraw-Hill Research Foundation White Paper Advocates for Greater
Collaboration Among Schools, the Private Sector, and Nonprofits to Improve
Financial Literacy in the U.S.
NEW YORK, Feb. 26, 2013
NEW YORK, Feb. 26, 2013 /PRNewswire/ -- America may rank among the planet's
wealthiest countries, but so many of its citizens have a poor grasp on
managing their personal finances. Improvement of the nation's financial
literacy is clearly necessary. In a new McGraw-Hill Research Foundation white
paper, "The Challenge of Financial Numeracy: Requisite Mathematical Reasoning
for Financial Literacy," author Michael Lee argues that the heart of the
problem is an inability of many people to apply basic principles of
quantitative reasoning in the financial decision-making process.
Lee believes that a critical distinction must be made between prosaic numeracy
and what he calls financial numeracy. Financial numeracy is an important
subset of financial literacy. While prosaic numeracy is a necessary starting
point, financial numeracy then employs the tools of prosaic numeracy and
applies them in a personal finance context. Without financial numeracy and the
quantitative reasoning that accompanies it, functional financial literacy
would not be possible.
Lee advocates for the inclusion of greater financial training in the grade
school and the high school curricula. Lee also calls for increased
collaboration among schools, the private sector, and nonprofit institutions to
improve financial numeracy in children and adults alike. He points to
organizations which are in the forefront of advancing the nation's financial
literacy, including the Jump$tart Coalition for Personal Financial Literacy,
the National Endowment for Financial Education, the National Financial
Educators Council and the Council for Economic Education.
Lee believes that improving the nation's financial numeracy would go a great
distance toward helping Americans better manage their personal finances, which
ultimately will help return the U.S. economy to its growth path. "By teaching
quantitative reasoning early in life, Americans can become empowered and use
the skills they have learned in order to make sound financial decisions later
in life," he writes.
Michael Justin Lee, CFA is a lecturer in the Department of Finance and in The
Center for East Asian Studies at the University of Maryland. He is a past
university senator and recipient of one of the Robert H. Smith School of
Business' highest teaching honors. A veteran chartered financial analyst and
examination grader for the CFA Institute, he served in the administration of
United States Secretary of Labor Elaine Chao as financial markets
expert-in-residence from 2003 to 2005. Professor Lee received his
undergraduate degree at Brown University and his graduate education at New
York University, completing an MBA in finance with Beta Gamma Sigma honors.
He is the author of The Chinese Way to Wealth and Prosperity: 8 Timeless
Strategies for Achieving Financial Success.
To download a copy of "The Challenge of Financial Numeracy: Requisite
Mathematical Reasoning for Financial Literacy," click here.
About The McGraw-Hill Research Foundation
The Foundation was established with the support of The McGraw-Hill Companies
and is a Section 501(c)(3) organization. Additional information is available
SOURCE McGraw-Hill Research Foundation
Contact: Lydia Rinaldi, +1-212-512-3600, firstname.lastname@example.org
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