4 Easy Ways to Improve your Financial Literacy

Financial literacy is one of the most important and underrated skills that anyone can have. Understanding basic financial concepts such as mortgages, inflation, and interest rates is critical for financial success. Once you unlock this knowledge, you will be better equipped to effectively manage, save, and invest money for you and your family. This knowledge, combined with other good financial habits, is the key to financial well being and freedom later on in life. While everyone has varying degrees of financial literacy, there is an overwhelming amount of resources available to expand your knowledge on financial topics.

 

  1. Read Personal Finance Books

If you enjoy reading, there is no shortage of finance books that cover a broad variety of topics, from eliminating debt to saving for retirement. One book recommended by Forbes magazine that covers the latter is Rewirement: Rewiring The Way You Think About Retirement!, by Jaime Hopkins. This book tackles common misconceptions and bad habits that prevent people from having flexible and successful retirement plans. For a variety of books on many topics, check out Insider’s  17 best personal finance books for 2021 .

2. Become familiar with basic terms and concepts

Investopedia is a great resource for deepening your financial knowledge, whether it be about common topics such as diversification and risk, or more complex subject matters like stock valuation and economic trends. Investopedia is a great place to start for anyone seeking to gain knowledge about the world of money.

3. Videos, Podcasts, and social media

Books aren’t your thing? No worries, there are a wealth of great financial podcasts to listen to as a way to gain financial knowledge. For ideas on where to start, explore US News and World Report’s  Best Personal Finance Podcasts to Listen To. These podcasts are a great way to grow your knowledge while driving, exercising, or doing other daily activities. If you are more of a visual learner, there are thousands of videos on YouTube and elsewhere on the internet covering just about any financial topic under the sun. However, it can be hard to sift through all the information, and misinformation on the internet, so Forbes recommends  Finance at Khan Academy’s free videos on a variety of financial topics. Another way to gain access to financial knowledge is to follow financial professionals and news publications on your favorite social media feed, such as Twitter or LinkedIn. 

4. Schedule an Appointment with a financial Advisor

Financial advisors and other professionals are there to help you, and they can answer many of your financial questions, whether it be about day to day money management issues, or complex long term solutions. They can also assess your financial situation, and develop a personalized plan for you to save for your retirement or just about any other financial goal.

 

 

 

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