Financial Literacy Meaning - Take Note!
Apr 07, 2022
April is a month commonly known for when tax filings are due, but did you know since April of 2004, it's been known as the month for financial literacy? It's obvious since then, and still to now, that financial literacy is still very important for everyone, especially for anyone turning 18 or is a college student. If you haven't gotten a basic education of personal finance, it's really never too late to start!
The basic topics of savings and budgeting is the foundational start, but there are so much more to finance! I hope you will make a commitment to keep learning and challenge yourself to be financially independent! It truly makes life easier once you can reach this stage.
Every college, even the Ivy League colleges, such as Harvard, is promoting the importance financial literacy (https://college.harvard.edu/guides/financial-literacy). Your educational and personal development will not be completed without a great education about personal finance as well! It is so important!
Here are some facts about Financial Literacy according to National Today:
1. There are seven components of financial literacy, which includes earning, spending, saving and investing, borrowing, and protecting.
2. Financial literacy means the ability to effectively use financial skills, it includes personal financial management, investing, and budgeting.3. The main variables of financial literacy are gender, age, occupation, marital status, education level of an individual, and income.
4. In the U.S., one out of every five students lack basic skills of financial literacy.
5. Men are more financially literate than women...29% of working women showed basic skills of financial literacy, whereas 47% of men demonstrated basic financial literacy skills.6. Loans are not understood properly (ie: credit cards, car loans, buy now pay later, etc)...54% of the student loan holders don't know about their future monthly payments before taking out their loans.7. Few are financially educated. According to a national survey, only 20% of adults have participated in financial education.
It is sad to see that today's idea of financial education among young adults and college students is focused on speculative investing and learning ways to make extra money. However, there's a lot more than that! What about learning and making sure you have a solid personal finance foundation of budgeting (a.k.a spending plan) and savings (paying yourself first and savings towards goals)? How are you staying on top of your finances? Do you drive your finances or does IT drive you?
Please engage yourself to learn personal finances, and seek a financial mentor or professional (and/or allow me to be your financial mentor) to empower you to build a solid financial foundation for yourself! If you don't have one in mind, join me and our growing community. You will have direct access to me, your questions will be something I can answer and help many more others. No catch, all free. :)
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