May 16 2025

One in Four Americans Financially Illiterate

Posted originally on May 16, 2025 by Martin Armstrong

Financial literacy is steadily declining in America. The percentage of US adults demonstrating a very low level of financial literacy increased from 20% in 2017 to 25% in 2023.

Around 58% of Americans know about debt and borrowing. Over half (55%) understand saving, and 50% understand consumption. About 42% understand insurance, 44% know about investing, and only 35% know about risk comprehension.

Financial literacy is declining with every generation. Around 53% of the Silent Generation understood finance, followed by 52% of Boomers, 50% of Gen, 45% of Millennials, and 38% of Gen Z. Around 74% of teens admitted that they do not feel confident in their personal finance knowledge, but the good news is that that 73% would like to learn.

There is a drastic difference in knowledge across socio-economic classes, as 75% of American teens are learning about personal finance through their family, with 52% learning a bit at school. An alarming 88% of Americans reported that high school public education did not prepare them for managing their finances. Interestingly, 48% said that they learned about personal finance through social media, which may not be the best reference.

Around 62% of teens said that they learned about savings, 50% were taught about earning, and 44% had some prior information on banking. Only 23% of teens in the US know how to make a budget, but 42% said they were taught how to do so.

This is why we see such a significant difference in financial literacy across socio-economic classes. Only 28% of people earning under $25,000 understand personal finance. That figure rises to 38% for those earning between $25,000 and $49,000, rising once more to 47% for those earning between $50,000 and $99,000. Over 58% of those earning six figures understand personal finance.

The National Financial Educators Council believes that financial illiteracy cost the American public $388 billion in 2023. Americans are facing a private debt crisis. Credit card and household debt have reached record highs and continue to rise. The majority of American households have insufficient emergency savings. The same survey found that 74% of Americans believe they would have made fewer money mistakes if they were properly educated on the subject matter in high school, and 80% believe they would have been more successful if they had that knowledge earlier in life. Politicians believe we should implement countless social programs and simply pay people to exist. America should focus on educating future generations on personal finance as it is perhaps one of the most essential life skills.

May 14 2025

States May Fund Migrants – Grey Area Questioned

Posted originally on May 14, 2025 by Martin Armstrong

President Trump’s Executive Order 14218 (February 2025) prohibits undocumented migrants from receiving federal funds. However, individual states are not prohibited from funding migrants, and several blue states are continuing to use state funds for such purposes. There is a grey area here as these states are incentivizing illegal settlement, but at the moment, the law seeks to ensure that only federal funds are not distributed to illegal settlers.

California may be in the midst of an energy and debt crisis, but Governor Gavin Newsom continues to fight Washington on behalf of migrants. California’s Cash Assistance Program for Immigrants (CAPI) provides cash payments to migrants who are ineligible for Social Security. Is this program using federal aid? The Department of Homeland Security has subpoenaed the past four years of records to determine if migrants resisting in Los Angeles have been receiving cash payments at the expense of our federal budget.

DHS Secretary Kristi Noem said that the subpoena for Los Angeles is merely the beginning of their ongoing search. “The Trump Administration is working together to identify abuse and exploitation of public benefits and make sure those in this country illegally are not receiving federal benefits or other financial incentives to stay illegally.” She continued, “If you are an illegal immigrant, you should leave now. The gravy train is over.”

A memo from the White House last month revealed that the American taxpayers have been paying $182 billion annually to cover all expenses for 20 million migrants, based on research from the Federation for American Immigration Reform (FAIR). The study found that the $182 billion included $66.4 billion in federal assistance, with state and local expenses reaching $115.6 billion.

People residing in blue states may not realize that their tax dollars are still being used to support people who illegally entered the nation, cannot apply for work, and are living a taxpayer-subsidized life.

In March 2025, Newsom requested a $3.44 billion loan from the general fund, the maximum loan amount permitted under California law, to pay for social programs. An additional $2.8 billion in state funding has already been committed to cover June costs. He is spending funds faster than they can be collected. Newsom has proposed numerous tax hikes, but they could never amount to his perpetual spending.

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Instead of focusing his attention and resources on Americans who have paid into the system their entire lives, Newsom has ulterior motives. He approved of spending $10 billion on health care costs alone for migrants.

Every agency involved in California’s finances has warned Newsom that his spending will destroy the state. Spending over the past five years has skyrocketed by 63% to $200 billion. I reported that the Legislative Analyst Office (LAO) found that California is facing “double-digit operating deficits in the years to come” as a result of reckless government spending.

California’s debt will rise when the federal government removes any funding misdirected toward non-citizens. There is a grey area here where states are openly encouraging illegal settlement through incentives from their taxpaying, legal residents. The Department of Homeland Security may still deport these migrants, but as we have seen in recent weeks, blue states will not relent.