"Credit is much more accessible to individuals than it has been in the past," Leslie Murphy said Friday. "And I think the availability of things that go beyond basic living needs and the corresponding desire for those has increased over the years."

Murphy, who lives in the Detroit area and works at Plante & Moran, was in Tulsa to address the Oklahoma Society of CPAs annual membership meeting.

She took time ahead of the event to talk about a "crisis of major proportions" involving inadequate financial literacy among Americans.

Murphy noted that the average family spends $1.22 for every $1 it earns.

The Oklahoma Society of CPAs, on its Web site, includes that fact along with other troubling statistics.

One in five American families with annual household income of less than $50,000 is spending 40 percent of after-tax income to service its debt.

The average family saw its credit card debt grow by 53 percent in the 1990s.

College students typically carry three credit cards, each with an average balance of $2,748.

"Strong financial management is a series of small decisions that compound," Murphy said. "I think the more we know about all of the issues that face us throughout our lifetime . . . that each of us will make better decisions that will result in better financial security for the long term."

The debate about Social Security's future and headlines about massive pension failures also demonstrate the need for being financially aware, Murphy said. President Bush has advocated revamping Social Security by allowing workers to set up individual investment accounts.

"I don't pretend to know what the answer is," Murphy said. "I do believe we need to make modifications to the system."

She added, "The longer we wait, the harder it will be and the bigger those adjustments will be."

People also are concerned about whether pension benefits that have been promised will be able to sustain retirees, especially as they live longer, Murphy said.

The Pension Benefit Guaranty Corp., which insures private sector pensions, has said the number of covered plans has dropped from a high of 112,208 in 1985 to fewer than 30,000 today.

Increasingly, workers are responsible for saving for their own retirement. The traditional defined-benefit pension plans are giving way to worker-funded 401(k) plans.

"Investment planning is a critical part of managing our financial health," Murphy said.

A survey conducted last spring shows that only 6.8 percent of Oklahomans rate their knowledge of how investments work as excellent. Males are more likely to rate their personal investment know-how excellent or good, while females are more likely to rate themselves as fair or poor.

Murphy said that even if people don't understand individual investments, they need to know how to find competent advice and experts who can help them make the right choices.

On a broader scale, however, Murphy said she is "concerned that the division between the wealthy and those living in poverty will continue to grow ever more distant"

The Oklahoma Society of CPAs plans to host a women's financial seminar Sept. 16.

Help with financial literacy can be found through the Oklahoma Society of CPAs Web site, www.oscpa.com.

-- Laurie Winslow