Research shows only four out of 10 Americans can correctly answer
questions about common financial topics
Just one out of four millennials can pass the same five-question test
of their financial savvy
New videos in English and Spanish from Ford Credit will help consumers
make smart decisions about one of their biggest purchases: vehicles
DEARBORN, Mich.–(BUSINESS WIRE)–Many Americans need more financial knowledge to make smart decisions.
Ford Credit is stepping up to help with short videos on car financing.
Only 24 percent of millennials – and just four out of 10 Americans
overall – can correctly answer four or five questions about common
financial matters, according to research1 from the FINRA
(Financial Industry Regulatory Authority) Investor Education Foundation.
“We’re making it easy for people to understand automotive financing by
providing the straightforward information they need to make good
decisions about one of their biggest purchases – a vehicle,” said Krista
Conyers, Ford Credit Marketing director. “For example, the ‘What is
Credit?’ video compares a credit score to a grade on a school report
The three new videos – the first in a series – help consumers understand
credit, compare buying and leasing, and explain what they need to know
when a lease ends. The videos are available in Spanish
on the Ford Vehicles YouTube channel: youtube.com/user/fordowner.
“What is Credit?” provides basic information about getting and using
credit, including explaining credit scores and credit reports.
“Buy or Lease” helps viewers understand each method so they can make
the best choice for their needs.
“Lease End” tells consumers what to expect when their lease contract
comes to an end, including the vehicle inspection, and the decision to
buy the vehicle or return it to the dealer.
The videos are designed to appeal to millennials, about 80 million
“Millennials want information delivered in quick bursts, so each video
is about three minutes. There is even more information for viewers – or
anyone – at fordcredit.com,”
Conyers said. Ford Credit will release more videos about automotive
financing later this year.
Ford Credit’s online tools, available in Spanish and English, help
consumers understand, access, choose and maintain credit, calculate a
budget and estimate their car payment.
Ford Credit also supports credit education through the American
Financial Services Association (AFSA) Education Foundation at afsaef.org,
Americans Well Informed on Automobile Retail Economics (AWARE) at autofinancing101.org,
and the Federal Reserve Bank of Chicago’s Money Smart initiatives. Ford
Credit employees deliver credit education presentations in their own
communities across the nation.
The five financial questions1 many Americans struggle to
Suppose you had $100 in a savings account and the interest rate was 2
percent per year. After five years, how much do you think you would
have in the account if you left the money to grow?
A. More than
$102 (correct answer)
B. Exactly $102
C. Less than $102
Imagine that the interest rate on your savings account was 1 percent
per year and inflation was 2 percent per year. After one year, how
much would you be able to buy with the money in this account?
More than today
B. Exactly the same
C. Less than today
D. Don’t know
If interest rates rise, what will typically happen to bond prices?
They will rise
B. They will fall (correct answer)
will stay the same
D. There is no relationship between bond
prices and the interest rate
E. Don’t know
A 15-year mortgage typically requires higher monthly payments than a
30-year mortgage, but the total interest paid over the life of the
loan will be less.
A. True (correct answer)
True or false: Buying a single company’s stock usually provides a
safer return than a stock mutual fund.
C. Don’t know
1 “2012 National Financial Capability Study,” FINRA Investor
Education Foundation, online survey, July-October 2012, www.usfinancialcapability.org
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About Ford Motor Credit Company
Ford Motor Credit Company is a leading automotive financial services
company. It provides dealer and customer financing to support the sale
of Ford Motor Company products around the world, including through
Lincoln Automotive Financial Services in the United States, Canada and
China. Ford Credit is a subsidiary of Ford established in 1959. For more
information, visit www.fordcredit.com
Ford Motor Credit Company