Financial literacy is the understanding of financial concepts and then applying those concepts to your life.
Being financially literate can help you become money-savvy and make responsible decisions.
Financial literacy affects every aspect of our lives, from education, to where we live and how we access medical care, says Craigh Chidrawi, head of retirement at NMG Benefits.
“The less debt we have, the less stressed, and healthier we are. Even just taking a few minutes every day to educate ourselves better about financial matters is an investment in our futures.”
Here are four tips to help you improve your financial literacy:
1: Do the research
Look up topics such as “living within your means”, “using debt responsibly”, and “how to invest for long-term goals/retirement”. You can use resources such as books, podcasts, videos, blogs, webinars, and seminars to grow your knowledge of financial literacy.
The number one thing that you can do to empower yourself when it comes to money is to educate yourself.
2: Speak to your employer
In addition to offering retirement planning tools and resources, more companies are offering their employees financial wellness programmes.
These programmes are particularly relevant if you are a part of a pension scheme or umbrella fund offered by your employer. Some employers and their financial service providers will give you access to financial coaches, mentors, or advisers.
3: Seek the help of qualified financial experts
Speaking to an independent financial adviser can help you put an actionable plan in place, and also be coached on the important terms of financial literacy.
It is important to seek the help of a financial expert, whether you are looking for information on day-to-day money management issues or advice on complex issues involving your business or personal finances and investments.
4: Take action
Being financially literate will not benefit you if you don’t apply what you know.
Arming yourself with credible information and expert financial advice will allow you to take the necessary actions to achieve your desired outcomes.
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