What we think we know

Money_Myths_Infographic_Overconfidence_Final (1)

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Do you think you’re “financially savvy?” Schwab says that may lead to overconfidence and poor decisions.

Schwab released results from a recent survey that shows people who consider themselves “financially savvy” answer financial planning questions wrong more of the time.

This is one of those surveys that makes a lot of sense to me. As a financial planner, my experience is that people who think they’re financially savvy are really good at one or two areas of personal finance. They really are savvy in say either budgeting , finding good deals when spending money, or are very interested in investing. While people who think they are savvy may, indeed, be savvy about one or two areas of financial planning, they don’t necessarily know much about, say disability insurance or social security.
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