Financial Literacy Matters: Here’s How to Boost Yours

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Money may not be able to buy happiness, but it’s certainly a lot easier to pursue things that bring you joy and fulfilment when you don’t struggle with financial issues and have a healthy bank account. More often than not, the path to building wealth and achieving financial security starts with having a solid financial education. 

Even if you are lucky enough to win the lottery or inherit a large fortune and don’t have to work tooth and nail to get rich, financial literacy is still important so you can make smarter decisions and not squander your money in the blink of an eye. 

Therefore, it’s not just business owners or entrepreneurs who have to be financially literate and know how to navigate the ever-changing economic landscape. Since the global economic system involves and impacts us all, everyone should be able to understand financial concepts and principles, develop financial skills, and learn how to apply them in real-life situations. 

Unfortunately, the educational system doesn’t do much in the way of equipping individuals with the necessary knowledge to manage their finances effectively, so most people have to fend for themselves, often relying on money myths and common misconceptions which inevitably lead to poor financial decisions. 

However, just because you haven’t had the opportunity to get a good financial education so far doesn’t mean you’re destined to live a life of poverty. It’s never too late to start learning, so here are a few things you can do right now to become more financially savvy.  

The Main Areas to Focus On

The world of economics is vast and complex but unless you plan on becoming an accountant or get a job in finance, you don’t have to learn all the ins and outs. You need, however, to gain a good grasp of the fundamentals and focus on the areas that have a direct impact on your financial life, such as:  

• Budgeting – maintaining an optimal balance between revenue and expenses is going to help you make the most of your funds and reach your financial goals in the long run. 
• Saving – living paycheck to paycheck is not an ideal scenario, so you have to learn how to put money aside to use it in case of emergency or to fund different initiatives. 
• Investing – once you have a safety net in place, you can move on to investing so you can make your money work for you and start building wealth. 
• Debt management – you can’t have financial freedom if you’re drowning in debt, so it’s crucial to know how to keep your debt under control and become debt-free at one point. 
• Retirement planning – being financially savvy means thinking long-term and preparing for the future, meaning you have to understand how pension works and what you need to do to live a comfortable life after retirement. 
• Insurance – purchasing the right types of insurance will provide financial safety and help you navigate life’s unexpected twists and turns.
• Financial products – you need to familiarize yourself with the inner workings of common financial products such as credit and debit cards, money transfers, exchange rates, and other banking services you use regularly. 

Go to the Library

If you don’t know where to begin your financial education journey, going to the library can be a good starting point. There are plenty of books that can teach you everything you want to know about finance, from basic concepts and principles to more complex matters, based on your level of knowledge and interests. This will allow you to learn at your own pace and choose books that suit your specific needs. As a beginner, you will find books like Personal Finance for Dummies or Your Money or Your Life extremely helpful. 

Listen to Podcasts 

No time to bury your head in financial books? No problem. Podcasts offer a great alternative to reading as you can consume financial content on the go, while you’re running your daily errands.  What’s even better, there are more than a few financial podcasts that you can tune into, so you won’t have any problem finding quality content in audio format. If you don’t want to waste your time sifting through all the options, Everyone’s Talkin’ Money or Planet Money are some recommendations worth considering. 

Take Advantage of Online Resources

The online space brings a world of knowledge and information to your fingertips, so you can always make use of digital resources to boost your financial literacy. You’ll find a wealth of websites, platforms, tools, and tutorials that deliver accurate financial information for anyone interested in all things finance. Taking online courses is another option worth considering. Just like you would enrol in an online class to learn chemistry or study any other subject you’ve learned in school, you can also find online finance courses that cater to learners of all levels. 

Attend Community Events

Sometimes, it’s easier to advance your learning and find the motivation to further your educational efforts when you are surrounded by like-minded people. Attending finance conferences and events whenever you have the chance gives you the opportunity to stay up to date with the latest developments in the field of finance, exchange ideas, or get advice from financial experts, which can have a significant contribution to your financial literacy. 

Consult with Financial Professionals

If you’re having trouble navigating the finance maze on your own, you can always seek the support of financial advisors or counsellors to tackle the exact issues that concern you. These professionals can provide you with the necessary guidance and advice so you can overcome challenges more effectively and take control of your financial life.  

Never Stop Learning

The economic landscape is constantly evolving and changing, so achieving financial literacy is not a one-time effort but a lifelong journey. If you want to be successful in today’s world and achieve all your goals, you have to make education a priority and do your best to constantly improve your financial literacy.