Being smart with money pays off. This is why financial literacy is important. It gives you the knowledge and confidence to manage, save, and invest money for yourself and your family. High financial literacy also helps you save for short- and long-term financial goals.
Not sure where to begin? We’re here to help. Here are some ways you can become more financially literate:
1. Educate Yourself
The internet is full of information, which has made financial education more attainable than ever. The best part? It’s free! Start with personal finance podcasts and newsletters. Make them a part of your day-to-day life and learn something new every day. You can also attend a free financial literacy class.
If you want something more in-depth to build your confidence with money, enroll in a financial literacy course. Intuit’s financial literacy courses are designed for a wide array of groups, including educators, adult learners, parents teaching teens, and even organizations. They cover everything, from budgeting to saving to investment.
With such a low barrier to entry, improving financial literacy through educational resources can be game-changing.
2. Track Your Spending
Another way to become financially literate is to track your spending. The aim is awareness and accountability.
First things first, determine all of your income sources. Then, make a list of your monthly expenses and allocate a specific amount of your income to each expense. Use a finance app or spreadsheet to track your spending for the entire month. You can also set a budget to see if you can stick to it.
Go out of your way to avoid unnecessary spending. Limit those daily coffee runs and cancel some entertainment platform subscriptions.
Knowing where your money is going will give you control and make financial independence more than a dream.
3. Keep an Eye on Your Credit Score
A lot of people overlook their credit score and its importance. Your credit score defines your reputation as a borrower, impacting the interest rates you’ll pay when financing a car, buying a house, or even renting an apartment.
You can get a free copy of your credit report once per year from each of the three credit reporting bureaus: Equifax, Experian, and TransUnion. Regularly check your credit score and pay bills on time to improve it.
4. Talk to a Professional
Seeking help to manage your finances is not something to be frowned upon. Financial experts are like advocates you need in your corner to improve financial literacy. They’ll assess your current situation and long-term financial goals to determine the best course of action.
They might teach you how to pay off debt strategically, as well as how to balance your investment portfolio. You can also learn ways to retire with financial security and peace of mind.
Remember, you’re not alone. Economic uncertainty has taken over personal finance, and inflation has made it difficult for people to secure their financial future. A financial advisor will understand your concerns and meet you wherever you are in your financial journey.
