One of the key measures of a country’s workforce capability is the literacy rate. Unfortunately, many underdeveloped countries remain in a cycle of poverty because young family members must help with basic household duties rather than attending school—if one is available.

In the U.S., the issue isn’t necessarily the availability of schools—it’s the opportunity for the curriculum to include basic financial concepts that will be helpful as the students become adults and gain financial independence. The 2008 economic recession made it clear that  many borrowers didn’t understand their exposure if the value of their mortgaged home decreased or their mortgage interest rate increased. Coupled with lax lending standards, this issue created a housing bubble from which many households have still not recovered.

The Consumer Financial Protection Board formed to help educate consumers about the various nuances of credit cards, credit scores, college borrowing and other aspects of financial literacy. Independent insurance agents are very familiar with this issue as it pertains to insurance: Almost every state requires auto, for example, and agents spend considerable time educating clients about the importance of sizable uninsured/underinsured motorist limits and personal umbrellas. Most agents know that clients with low policy limits have significant financial exposure. Worse, the multitude of online budget insurance companies pushing for low-cost insurance only reinforces the misleading notion that insurance is a commodity.

One regulatory body, the Financial Industry Regulatory Authority (FINRA), offers an industry financial literacy quiz as part of its National Financial Capability Study. Take this six-question quiz to test your financial IQ, and encourage family and friends to take it too—results are available on a state-by-state basis. The FINRA website also contains some interesting data regarding the percentage of Americans with credit card debt, along with their spending and savings habits.

The Big “I” has shared a similar mission for more than 40 years: educating the public about insurance as a career and providing basic insurance information catered to consumers. Have you considered directing your agency’s clients to the information InVEST® provides?

As we know, the more consumers learn about insurance, the more likely they will make wise insurance decisions—and the more they will appreciate the resources a Trusted Choice® agent provides. Take a moment to engage your clients in a conversation about their financial literacy, and be sure to point out the free resources available to them. It benefits everyone when people make responsible financial decisions!

Dave Evans is a certified financial planner and an IA contributor.