What is financial literacy and why is it important?
Why is financial literacy critical? Financial literacy is essential because it prepares us with the knowledge and skills; we need to manage money effectively. Without it, our financial decisions, and the actions we take—or do not take—lack a solid foundation for success. If you want to become literate about financial aspects, you will become one. The simple way is to be interested in everything that you come across concerning finance. ‘WHY?’ is one of the significantly less frequently asked questions. Financial Education is just like any other type of Education. It is available to everyone and can be learned by everyone. People who do well financially do not have some secret knowledge or insider connections. They have learned more in this area and are applying what they have learned.
Benefits of Financial Literacy
Basic financial literacy helps people become self-sufficient and achieve financial stability. Includes being able to save money, distinguish the difference between wants and needs, manage a budget, pay bills, buy a home, pay for college, and plan for retirement.
Who needs financial literacy skills?
Any Individuals who need to make use of financial knowledge to make better financial decisions. From everyday spending to long-term financial planning, effective money management means using money to further your personal goals - no matter what they are.
How can financial literacy impact my future?
Financial literacy helps you plan. Financial literacy helps you meet your financial goals. ... Financial literacy can improve many areas of life — relationships, careers, hobbies, and home life. Financial literacy provides life skills for young people to use as adults.
What are the dangers of financial illiteracy?
Financial illiteracy can result in poor saving, poor spending, excessive credit card uses, and bad investment decisions. The stress of financial insecurity in families can lead to divorce, suicide, domestic violence, and other crimes.
Why it is important to be financially literate?
Financial literacy is important because it equips us with the knowledge and skills, we need to manage money effectively. ... Nearly half of Americans do not expect to have enough money to retire comfortably. Credit card debt has reached its highest point ever.
Here are some simple ways to help you become financially literate.
Hit the Books. ...
Read Magazines and Online Publishers.
Use Financial Management Tools.
Listen to Money Podcasts.
Take a Financial Literacy Course.
Get Your Math On.
Read the Government Resources.
One of my favorite reads is book Rich Dad, Poor Dad. It is easy to read and helps you to start to think about money differently.