By Oklahoma Insurance Commissioner Glen Mulready
Financial literacy is more than a buzzword – it’s a key part of building economic security, yet many Americans still lack a strong understanding of it. According to the Global Financial Literacy Excellence Center (GFLEC) Personal Finance Index, U.S. adults correctly answered only 48% of the questions in 2024, on average. Without a solid grasp of personal finance basics, people are at risk of financial struggles. The National Financial Educators Council estimated that financial illiteracy cost the average person $1,015 in 2024. I want to stress the importance of these crucial skills and empower Oklahomans to improve their understanding of their finances. The Oklahoma Insurance Department (OID) and I are excited to share our new free Insurance & Financial Resource Guide.
Financial literacy covers several important topics, such as budgeting, saving, investing, and managing risk. Insurance plays a vital role in this strategy and helps to ensure financial success. Many people find insurance complicated or intimidating, but it’s a critical step toward economic stability and provides a crucial lifeline during times of loss or difficulty, whether it’s property, health or life. Understanding it and how it protects your financial well-being is essential.
Let’s take a moment to consider how insurance works alongside other areas of financial literacy. For instance, you’ve built your savings and are investing in retirement. You’ve set attainable goals and achieved them. Then, life happens. Losing your home to a fire, being involved in a car accident or losing a loved one all come with steep costs. Without insurance, your finances could take a significant blow. However, insurance keeps manageable financial risk from becoming a life-altering crisis.
Our resource guide provides an easy-to-follow overview of the financial planning process along with explanations of auto, home, renters, health, and life insurance. You’ll become familiar with integrating insurance into your considerations and the laws, regulations and tips around the different coverages. This resource-packed document is the perfect place to start your journey of enhancing your financial literacy.
The key to improving your financial literacy is education. Familiarize yourself with the finance vocabulary and learn how each aspect applies to your situation. A good start would be reading your insurance policies to know what your coverage includes. If you don’t understand something, don’t hesitate to contact your insurance agent or OID for assistance. If you need more help, contact a financial planner who can guide you through making goals and planning. Like all aspects of your finances, you don’t want to leave any room for guessing.
So, Oklahoma, are you ready to take control of your financial literacy? Understanding and managing your finances will pay off in the long run. Along with our Insurance & Financial Resource Guide, which you can download now at oid.ok.gov/ifrg, you can find even more information about insurance, disaster preparedness, finding lost policies and getting assistance at oid.ok.gov. You can contact us at 800-522-0071 or 405-521-2828.
