It’s no secret that the Great Recession has changed life in America. Americans have faced a meltdown in household wealth, diminished retirement expectations, and dwindling home values, among other things. However, this time of economic uncertainty has also led to a new frugality in Americans’ spending and borrowing habits according to the Pew Research Center’s Social and Demographic Trends Project.
More than six-in-ten Americans (62%) say they have cut back on household spending since the recession began in December 2007; just 6% say they have increased their spending. Half say they have reduced the amount they owe on mortgages, credit cards, car loans and other borrowing.
But could these new habits of thrift and caution outlive the recession?
Improved financial literacy can help along the way. The financial decisions you make can have a lasting impact on your credit and your overall financial health. In preparation for Financial Literacy Month in April, and to help you understand the long-term benefits of becoming financially literate, BLACK ENTERPRISE has created a 10- question quiz to test your financial IQ.
How financially savvy are you?