Did you know that only 57% of Americans are financially literate?
That’s a scary statistic, especially when you consider how important financial literacy is for our daily lives. That’s why Financial Literacy Month is so crucial. It’s the perfect time to take a look at your financial situation and make sure you’re making healthy financial decisions. It’s a time to raise awareness about the importance of making smart financial decisions and equipping ourselves with the knowledge and skills we need to succeed.
Making smart financial decisions is just as crucial as the other healthy choices you make every day? In fact, taking care of your physical and financial wellness can often go hand in hand.
In this post, we are sharing actionable tips to increase your financial IQ.
How can you level up your financial smarts? ✍️💸
#1 Tackle debt like you tackle your gym plan
Take on your debt, tackle it with a plan. Make a payoff plan and stick to it as you stick to your workout routine.
#2 Plan a budget the same way you plan your grocery list
Budgeting is like making a grocery list. Without it, you tend to splurge on impulse buys. Take control of your finances by knowing where your money is going and avoiding overspending.
#3 Keep your finger on the pulse of your finances
Keep your financial health in check just like your physical health. You don’t wait until you’re sick to see the doc, do you? So don’t wait until something’s wrong to check your bank account, or credit report.
#4 Get Fin/Lit (aka Financially Literate) and Have Fun Doing It!
If you’re serious about leveling up your money game, then you gotta start listening to some finance podcasts and reading finance books. Trust me, it’s not just about being able to talk the talk – learning about financial literacy will set you up for success in the long run. Plus, with all the amazing resources out there, you’ll be able to grow your own money tree in no time!
Click Here to see some of my favorite finance books!
📰 In the news:
The Truth About Financial Literacy in America
Why it matters
Money experts say that many American adults don’t understand basic financial concepts like income, budgeting, saving, and investing, as well as how interest rates work and why credit scores matter. Studies show that this lack of knowledge can have serious consequences, affecting everything from how much people save to how much debt they take on.
By the numbers
According to a report from the National Financial Educators Council, 38% of survey respondents said their financial illiteracy cost them at least $500 in 2022, and 15% said it set them back by $10,000 or more.
In the 2022 TIAA Institute-GFLEC Personal Finance index, which is a test to measure financial knowledge, adults only got half the questions right on average (28 questions total). And get this – 23% of people taking the test couldn’t even answer more than 7 of the questions correctly! That’s the highest percentage of people struggling with the test in the survey’s history.
The big picture
The lack of financial literacy can have a serious impact on individuals’ finances and overall well-being. Experts recommend starting financial education early, and as of last year, 24 states require personal finance coursework by grade 12.
There are some big money moves that you gotta make before you even hit adulthood or right after. You gotta figure out how to pay for college, handle a credit card or car loan, build up that credit score, pay taxes, and even start saving for retirement. That Is why it is important to start educating yourself now to get ahead of the game!
🧋 Taylor’s Toolkit
For the longest time, I thought that being good with money was just a natural talent that some people were blessed with. However, I soon learned that financial literacy is a skill that you have to actively seek out and work on. As I began to take control of my finances, I started to see how it positively impacted every area of my life. From my personal relationships to my professional goals, being financially literate has allowed me to achieve success in ways I never thought possible.
When you’re financially literate, you’re not just good with numbers, you’re also self-sufficient. You’re able to make informed decisions about your money and plan for your future with confidence. You don’t have to rely on anyone else to handle your finances, because you know how to do it yourself.
Being financially literate means that you spend and save your money with a clear purpose – to grow your money tree and secure your financial future. To help you achieve that goal, I’ve got some awesome cards that I use every day to rack up some serious cashback rewards. Check them out below!