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One of the most valuable commodities in the world is knowledge, but it is only when it is followed up by the application of that knowledge. Everything else, money, stuff, even health and love, can come and go. And, they can all be taken away from us in an instant. The one thing that no one can ever take from you once acquired is your knowledge.
What we must understand is that money issues actually go beyond how most of us think about it. The facts are, that we should all be thinking about our finances in a much broader perspective, beyond just going to work and earning as much as we can, or buying products and programs and then trying to save a few dollars. It's beyond simply having a 401(K) and group life insurance at work. That is not financial planning. Unfortunately, according to the Financial Industry Regulatory Authority (FINRA), about 66% of the American population is considered financially illiterate.
What is Financial Literacy?
Financial literacy is the ability to understand the programs that affect your money including taxes, insurance, retirement, college financing, budgeting, credit, investing, saving, and then the concepts you need to understand and then use properly to effectively manage your money.
Financial literacy begins with your very first interactions with money, a lifelong journey—one that inevitably has both good and bad moments.
Financial literacy consists of several financial components and skills that allow an individual to gain knowledge regarding the effective management of money and debt.
Being financially literate doesn’t mean you know everything about money; rather, it equips you to seek out the proper answers you will need in order to make smart financial decisions.
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"7 Steps To Manage Your Personal Finances"
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