(Bloomberg Business) — Learning the basics of personal finance are not enough to secure your financial future, a new study shows. Instead, get a savings account, fast.
Millennials who had experience with savings accounts are more likely than people with just a financial education to have money at the ready for emergency expenses, and were less likely to rely on high-cost loans or have excessive debt, new research from the University of Kansas shows. The findings suggest parents could spend more time encouraging their children to use financial concepts in practice, not just learn them, says Terri Friedline, one of the report's authors.
"The opportunity to put your knowledge into practice by having a financial product may help to move the needle in terms of financial outcomes," Friedline says, adding that research suggests kids as young as five years olds can start learning about savings. "They can learn and grasp financial concepts."
