Financial Naivety

Are you a financial whiz?

Were you ever taught how credit cards work, what an online bank account is, how to shop for a mortgage or the difference between a stock and a bond?

For most people, these things are “learned as you go.” Over time people might pick up things from friends and family but never receive any formal education. Without a proper way to evaluate all your options, it is very easy to miss out on opportunities or worse, to get taken advantage of.

We support mandatory college courses on basic financial literacy but until that happens, it’s on consumers to self educate!

The good news is that there has never been more readily available free resources to help you make the right financial moves. (including this blog) But you have to do the work!

Financial literacy unlocks the door to financial success. However, it is common to be intimidated when it comes to gaining knowledge in the world of finance.

But as you get older, you run out of time to say “I didn’t know” or I didn’t understand….”

You have to get up to speed quickly.

The main benefit of financial literacy is that it empowers you to make smart financial decisions. It provides the knowledge and skills you need to manage money effectively—budgeting, saving, borrowing, and investing.

This means that you’re better equipped to reach your financial goals and achieve financial stability.

Some financial areas you should research:

• Saving for retirement.
• Creating and sticking to a balanced budget.
• Purchasing a home.
• Selecting insurance.
• Reducing expenses.
• Investing.
• Buying vs leasing a car.
• Saving for college.
• Managing debt.

I know it sounds like a lot. But you don’t have to become an expert, basic knowledge can go very far. .. Like doing basic repairs around the house. when it comes to heavy lifting you call in the big guns.

For financial literacy, there are financial planners ready and willing to help.

But to claim ignorance or to be financially naïve just doesn’t cut it anymore. A lot of the country is living paycheck to paycheck and it’s time to break that trend.

One important note—being financially literate doesn’t mean you have to pick the next hot stock or even understand Bitcoin however it does mean you understand there are different things to invest in, the expected risks and returns and a general idea of what they are about.

Having general financial knowledge will put you on the path to financial success.