Financial stability is an exciting concept. Considering that almost a third of working Brits currently live paycheck to paycheck, and about a quarter have less than GBP95 in their savings accounts, having the stability in knowing that should a paycheck not come, things will be just fine is something that a small percentage of workers have. Nonetheless, you could be one of them. It all starts with financial literacy.
The Truth About Financial Literacy
No matter who you ask, if you were to ask the question, “Are you financially literate?” just about anyone would say yes. However, a recent survey found that only 37% of Americans could answer five basic questions surrounding investor education, showing that the UK isn’t the only region with financial literacy concerns, it is a global epidemic. The survey, developed by the FINRA Investor Education Foundation in 2016 shows that the shocking truth is that we may not know as much about how money works as we thought we did.
At the end of the day, achieving financial stability without financial literacy is highly improbable. To build your way to financial stability, you’ll need to have a good understanding of checking accounts and how they work, different savings options, the true cost associated with borrowing and how to invest your money properly. The bottom line is that no matter what your level of expertise in the financial sense is, taking the time to learn more about money will give you a better chance of becoming financially stable.
Steps To Achieving Financial Literacy
Since financial stability is achieved through financial literacy, this is where you’ll want to start. Here are a few steps to get you headed in the right direction:
Step #1: Use The Web For What It Was Intended – The internet has become ingrained in our lives. We use it to connect with with friends and family, play games, watch movies, listen to music and more. However, the original internet was designed as a knowledge base. The idea was to connect the world to an information superhighway. While it has become far more than that today, there are few better sources of information on just about any topic. Including financial topics. A simple search for information on checking accounts, savings accounts, how to invest, and more will yield plenty of information with regard to money. Here are a few great places to start:
- com’s 14 Invaluable Habits – In an article titled, 14 Invaluable Habits – What To Do With Your Money, DebtConsolidation.com provides various habits that financially stable people tend to have. In fact, the fourth habit has to do with financial literacy!
- com’s How To Make A Budget Spreadsheet – In an article titled How To Make A Budget Spreadsheet That Makes Budgeting Fun, CNA Finance provides a detailed outline with regard to making an intuitive budget spreadsheet that includes everything you need to track your money!
- FINRA Investor Education Foundation – The FINRA Investor Education Foundation is an incredible foundation that is focused on building a financially strong America through educating Americans on Money. The website offers several incredible resources that are well worth taking the time to look into.
Step #2: Ask Questions – Another thing that you’ll want to do is ask questions. When opening a checking account, savings account, credit card, or any other financial account, don’t be timid! If there’s something that you don’t understand, or a question that you need the answer to, don’t be shy, ask the question! As human beings, we are creatures of habit that learn through experience. Without asking questions, it takes far more experience to learn!
Step #3: Consider A Financial Literacy Class – The truth of the matter is that financial literacy is so important that in the nearest metropolitan area to you, there’s a strong chance that you’ll be able to find a class on financial literacy. Consider taking advantage of a course or two to brush up your knowledge surrounding money.
We all want financial stability. However, in order to get there, we have to be willing to take the time to learn about the inner workings of money itself. So, what are you waiting for? It’s time to start digging for the knowledge that can help you break free from the rat race!