Did You Know?
When it comes to people being financially literate, the truth is that this is a global problem. Only 1/3 of adults understand basic financial literacy concepts. 78% of families live paycheck to paycheck. And 29 states in the USA don’t require high school students to take a course in personal finance.
To see if you are financially literate, it’s important to define what financial literacy is.
What is Financial Literacy?
Financial literacy is likely one of those phrases where people say it, but don’t know what it actually means. For example, if you’re not from Pittsburgh, you might not know the real meaning behind the phrase “Kennywood’s open”.
According to Investopedia, financial literacy is: “The ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.”
If you do not have basic knowledge of financial literacy topics, you won’t be able to make important financial decisions like opening a bank account, paying off debt, or planning for retirement. So where and how do you start to become financially literate? Here are five ways you can have a better understanding of personal finance.
5 Ways to Increase Your Financial Literacy Knowledge
- Listen to Podcasts – Podcasts can be a great way to learn about earning, saving, spending, investing, and giving! If you are not big into reading, or don’t have time in your day, podcasts allow you to listen while you work, drive, clean, cook, and learn while you are on the go. Maybe instead of watching a show, take the time to listen to a podcast and grow your knowledge of personal finance.
- Subscribe to a Financial Newsletter – Subscribing to a newsletter is inexpensive, can help save you time, and provide good advice when it comes to wanting to learn more about money. A quick search on the internet can help you decide which one you might want to subscribe to.
- Head to Your Local Library – Libraries house thousands of books and there are plenty on the shelves about the topic of financial literacy. From tutorials to best practices, your local library can provide you with almost all the resources you need.
- Connect with Friends or an Expert – The thought of talking about finances with another person can feel uncomfortable. Money can be a taboo topic for many people, but it doesn’t have to be! Connecting with a friend or a person you trust can be really helpful; especially if they have knowledge on the topic. Find an accountability partner who can help keep you on track and support your goals.
- Download the NuMoola App – NuMoola is an intelligent family banking app that combines real money, gamification, and agification to help young families build lifelong positive money habits. It’s available in the Apple App Store for iOS devices. By downloading this app to your phone, you and your family can work together to become more financially literate. Looking for a hands-free way of learning? Check out our Alexa skill for your Amazon Alexa!
There are so many free resources or organizations that would be able to help get you on the right track. The important thing to note is that it’s never too late or too early to start!
Assess How Financially Literate You Are
Download this checklist to help inform and keep you on track to improve your financial literacy skills.