Financial literacy is the ability to comprehend and apply financial management skills. It’s the ability to make decisions that align with the values and goals of your own that include budgets that save money, managing debt, investing in long-term objectives and protecting against unexpected expenses.

Many people struggle with their financial knowledge. Insufficient financial literacy can lead to high-interest student and credit card loans, living from paycheck to the bank, and issues with saving money and planning for the future. These issues can affect the quality of life of a person and cause them to lose sight of their financial goals, including retirement and homeownership.

There are numerous ways to increase your financial literacy. From formal education to community and family projects, there are many options. Local community organizations banks, financial institutions, and government organizations can offer classes on money-management basics like spending, budgeting, and saving. These classes may also include guests speakers and hands-on exercises to offer real-life case studies https://fuhrman-matt.com/2023/06/19/financial-literacy-and-auto-renewal-services/ and encourage discussion.

In addition, some states are now requiring personal finances courses in schools as part of the curriculum. This could improve accessibility and equity for those who would otherwise be able to access them. Non-profit organizations such as Next Gen Personal Finance also provide teacher stipends and professional development, and other resources that help teachers educate their students on financial literacy. These efforts are vital as a good understanding of financial literacy will allow you to to manage your finances and budget effectively, as well as invest over time.