Fifth Third Bank Survey Debunks The Myth About Americans Knowledge On Financial Education

As part of financial literacy month of April, Fifth Third Bank (NASDAQ:FITB0 conducted a survey to find out the extent of financial knowledge that the Americans command. Significantly, the survey debunked the myth about the general belief of the Americans on the financial education. One of the most notable features of Fifth Third Bank survey was that one in four Americans have achieved a debt-free lifestyle successfully. There are also three more debunks from the survey. As far as the lack of basic financial knowledge, the study found that the citizens in the United States were all well educated on the financial terminology, as well as, best practices. For instance, 87% of the respondents knew APR was an acronym for annual percentage rate, an important element in respect of loans and credit decisions. Another myth was that the American could not handle their credit card debt. The survey found that 62% of the nation faced credit card debt. Results indicated that the citizens were aware as to how to manage and pay off balances. For instance, 85% of the respondents knew how to positively impact their credit score. Also, two-third of the respondents identified 30% as the suggested amount of credit availability to use, which was correct. One more myth was millennials were struggling to gain financial independence. Survey found that less than a third of the millennials depended on their parents for the financial support while 36% found themselves as completely independent financially. This was contrary to the general belief that millennials were impulsive and independent. Also nearly half of them have a minimum of two months of living expenses saved. Fifth Third Bank SVP and Community Reinvestment Act Strategies Director, Jada Grandy, said that "It's encouraging to see Americans are generally knowledgeable about basic finance concepts. There's still a long way to go in terms of transferring that knowledge from concept to practice, but with an understanding of best practices and a will to achieve independence, Americans are on the right track to financial empowerment." On Friday, shares of the company traded 0.84% down.