4 Ways to Improve Your Financial Literacy
Do you ever find yourself in a conversation where someone is discussing IRAs or annuities and you’re just nodding along because you aren’t 100% sure what those terms mean? Or maybe you know what they are, you just don’t understand the context in which the person is talking about them? You’re definitely not alone.
Financial literacy is one of those things we all know we need, but not many of us actually sit down and take the time to work on it. And unfortunately the information we learned in Econ 101 didn’t last as long as we had hoped.
But understanding money and finance is well worth your time. It’s a huge asset to know how to manage your money and be able to understand your financial situation. There’s power in knowledge.
If you’re determined to improve your financial literacy, this is your first step in doing so and that’s something great to acknowledge! So let’s get to it!
If you’re ready to start making progress toward improving your financial literacy, use these 4 tips as a jumping off point to expand your knowledge of the financial world.
Set Your Goals
The first step in finding the information you want to know is to establish your financial goals. You’ve made a conscious decision to improve your financial literacy, and I’m willing to bet something in your current financial situation has inspired that. Maybe you’re considering buying a house and want to know more about budgeting for your investment or the mortgage payments you’ll potentially take on. Or maybe you’re getting a head start on saving for retirement!
Whatever your goals are, keep them in mind as you begin your financial education. We live in a world with an abundance of resources, which is both an advantage and disadvantage. Information overload is a real thing, and you don’t want to overwhelm yourself. Start out by searching for information relevant to your specific goals.
Read
Like I said, we live in a world with a wealth of information, so you have a lot of options to begin your search. There are books, newspapers, magazines, and the Internet, of course, that can all help you expand your financial literacy.
Publications like Forbes and Barron’s can offer a lot of insight into everything from investing and trading to money management. And there are so many books on finance you’ll be sure to find one that has exactly what you want to know.
Listen
I understand if you don’t feel you have the time to sit down and read, not many of us do. But there’s a fantastic solution for that: radio and podcasts! Make the most of your morning commute, or your time cooking in the kitchen, to improve your financial literacy with an informative financial podcast or radio show
Some great shows to listen to are:
Have Conversations
Money and finance are some of the things many consider taboo for conversation, but I think they’re important things to talk about – especially with your spouse! A great way to learn about finance and improve your financial literacy is to get a good handle on your own financial situation. Make a point to sit down with your spouse once a month or so just to discuss your current situation, your spending and saving, and if you’re making progress towards your overall goals.
Financial literacy can make a huge impact on your ability to manage your money and improve your financial situation. I hope you find these tips helpful and that you make great strides in improving your financial knowledge and current situation.
If you find working on your finances a daunting task, maybe it’s time to enlist some help! Schedule a complimentary financial planning session with me and we can talk about your current situation, your goals, and what you can do to reach them!