Financial Literacy at a Record Low Due to the Lack of Financial Education. Further: Most Consumers Fail Basic Financial Literacy Quiz.

Fort Collins, CO, April 10, 2008 --( In conjunction with April being Financial Literacy Month, has today released its 1st quarter statistics showing that the average quiz score from thousands of online test takers was just 56.84%, yet a minimum score of 75% is required to “pass.” The majority of consumers nationwide, regardless of age, income or education level, are not able to pass a basic quiz covering such topics as Credit and Banking, Real Estate and Mortgages, Car Buying, Insurance, Taxes, and Investing and Saving for the Future. The online quiz from is comprised of 50 multiple-choice questions, provides an immediate score to visitors with suggested areas of improvement, and is free. is the creation of Braun Mincher, a successful social entrepreneur and author who is working to bring better awareness to the financial illiteracy epidemic sweeping the nation, and helping consumers at all levels get needed financial education. “Ultimately, the underlying cause of the recent media headlines relating to the Foreclosure Crisis, Stock Market Meltdown, Looming Recession and the like, are directly related to the lack of financial education on the part of us as consumers. If we want to prevent this situation from happening again in the future, we need to make financial education a top priority,” says Mincher.

Some highlights of the results from

• Only 40% know that their liability for credit card fraud is limited to $50.
• Only 50% know that Property Taxes and Mortgage Interest are tax deductible.
• Only 33% know what “Annual Percentage Rate” (APR) means.
• Only 56% know that the annual interest rate on most Payday Loans is 390%.
• Only 34% know the upper and lower income tax brackets.
• Only 53% know that the long term capital gains rate is 15%.
• Only 32% know what required deductions are taken from their paycheck.
• Only 59% know that the “Rule of 72” is the time required to double your money.
• Only 41% know that most gains on the sale of their personal residence are tax free.
• Only 32% know that a “Roth” type of IRA/401k does not tax the growth (appreciation).
• Only 55% know that the maximum annual 401k contribution is $15,500.
• Only 47% can define “Prime Rate,” and only 38% know what it currently is in the U.S.
• Only 38% know that a “Durable Power of Attorney” allows somebody else to make your healthcare decisions when you are unable.

In summary, the quiz data shows that consumers are not knowledgeable when it comes to everyday financial decisions. Males scored slightly better than females on the quiz with men getting an average score of 58% and women 53%. Those with only a high school education averaged 48%, an undergraduate degree 58%, and a graduate degree 62%. Interestingly, test takers who reported “some college” scored 58%, the same as those with bachelor degrees. Scores noticeably improved with age, either due to better financial education or more life experiences. Those below age 25 averaged 40%, the 26-30 age group 54%, the 31-39 age group 60%, the 40-49 age group 62%, the 50-65 age group 61%, and those over 65 were ironically 65%.

Would you believe that doctors and lawyers make the same financial mistakes as homeless people? According to Mincher, “40% of consumers live beyond their means, half are living paycheck-to-paycheck, and the national savings rate is now a negative number. People are more likely to declare bankruptcy than either graduate from college, file for divorce or get diagnosed with cancer. We need to reverse this trend through better financial education of both adults and students or we face dire consequences in the coming years. Considering the state of the economy along with soaring gas prices, now more than ever, consumers need financial education.”

To further his initiative of better financial education, Mincher is “Challenging” high schools and colleges across the country to make semester-long Practical Financial Literacy Classes a graduation requirement, just like math, English, science, etc. Presently, only 7 states have such a program. Most parents and business leaders are in favor of this initiative, but some in the academic and education communities have pushed back with a multitude of excuses. Not easily taking “no” for an answer, and in the same entrepreneurial fashion that made him a success in business, Mincher is forging ahead with his project, and subject to certain conditions, is not only offering to provide the curriculum, but also offering a textbook for each student at no charge.


About Braun Mincher: A young and successful entrepreneur who had the ability to "retire" several years ago at the age of 30, Mincher is a self-made multi-millionaire, even though he started with nothing and dropped out of college to grow his first business. He is currently traveling the country to further his passion of better educating All consumers, and not just the business or financial savvy, on the topic of Practical Financial Literacy.

Mincher is a recognized expert in the field of personal finance who is frequently interviewed by the national media, and his credentials include being both a licensed real estate broker and a licensed mortgage broker, in addition to previously being named “Entrepreneur of the Year” by Ernst & Young / Inc. Magazine. He is also the award-winning author of The Secrets of Money: A Guide for Everyone on Practical Financial Literacy, which was released in December and is available from booksellers nationwide.
Braun Media, LLC
Braun Mincher