While it might be difficult for many Americans to “save for a rainy day” or handle a surprise bill, there are still ways to protect your nest egg -- it starts with increasing your financial literacy.
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“We discovered that lots of folks really are relatively illiterate around finances,” said TIAA CEO Roger Ferguson to the FOX Business Networks Maria Bartiromo. “They don’t even necessarily understand the basis budgeting… or investments.”
Second, people should understand the choices they make in terms of consumption versus savings and investing.
“Turns out 45% of working class households don’t have one penny saved for retirement,” he said. “So we need to break this forward as a really important public policy consideration as well.”
When it comes to dividing up your money for retirement, Ferguson said start with taking advantage of your company match.
“That’s a way to immediately double your money,” he said.
He also said it’s important to accumulate lifetime income.