The Importance of Financial Literacy
Financial literacy is one of the most important factors in reaching financial freedom. Research shows that a person is more likely to be financially literate if they received some type of higher education whether that be high school or college (Lusardi & Mitchell, 2014). However, not everyone is able to have the privilege to attend a four-year university, and even if they do, unless you are majoring in something specifically related to finance like Business or Economics, you will likely not be educated on this topic.
Financial literacy is a topic that is rarely taught which has many implications. Many low-income communities live paycheck to paycheck and are not able to manage their money effectively. By obtaining the proper education on this topic, people can learn how to budget their money, invest it and overall get the most out of the money they are earning. So how can you take a step towards being financially literate?
There are many podcasts available through audio streaming platforms like Spotify and Apple Music. Some top favorites include: Rise and Grind by Daymond John, Brown Ambition by Mandi Woodruff and Tiffany Aliche, and HerMoney by Jean Chatzky.
One of the best ways to educate yourself about anything is to read a book on it. Some books recommended by many successful people include Rich Dad Poor Dad by Robert Kiyosaki, The Intelligent Investor by Benjamin Graham, and The Little Book of Common Sense Investing by John C. Bogle.
And last but not least, something that you are using right now, a cell phone, computer, etc. There are numerous educational platforms including LinkedIn Learning, that are dedicated to educating people all over the world. If you have the privilege to have access to the internet, take advantage of it to its fullest potential.
Taking these steps towards educating yourself will benefit you in the future and will save you a lot of money and time.