Low financial literacy leads to $243 billion cost in 2024; Erin Lowry identifies common investing mistakes.

From Yahoo Finance: 2025-06-24 17:03:00

Half of U.S. adults have low financial literacy, costing Americans an estimated $243 billion in 2024, according to The Associated Press. Erin Lowry, author of “Broke Millennial,” identifies common costly investing mistakes in her work and interviews, aiming to help everyday investors navigate confusion.

Investing myths, like needing to be good at math, can deter people from learning. The basics of investing focus on core ideas like risk, time horizons, and compounding, rather than complex equations. Lowry emphasizes that understanding these concepts is key to successful investing.

Many are investing without realizing it through retirement accounts like 401(k)s or IRAs. However, calling it “saving for retirement” can lead to missed opportunities. Lowry encourages embracing the term “investing for retirement” to shift mindsets and promote active investment strategies.

One overlooked mistake is setting up a retirement account without actually investing the money. Lowry warns that this can stall wealth growth significantly. Holding too much cash in retirement accounts can reduce returns, so it’s crucial to ensure funds are actively invested to maximize growth potential.



Read more at Yahoo Finance: 4 Big Investing Mistakes People Keep Making, According to Erin Lowry