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What Is Financial Literacy
Understanding the meaning of financial literacy is very important to anyone that needs help when it comes to keeping more of your money. The only way you will ever accomplish the goal of having more money is to become financially educated or financially literate. There's no way around it.
First let me start by defining the word financial.
In plain words financial is anything that pertains to
money or money matters.
Second I will define literacy? Literacy simply mean
having knowledge of a particular subject or field.
So when you combine the two words together you
will understand that financial literacy is simply having
the knowledge and the ability to handle or deal with
anythings that pertains to money or money issues.
To break it down a bit more than that, financial
literacy means being well informed when it comes to
the following things
- credit issues
- credit card issues
- financing Items
- going in debt
- reducing debt
- paying off debt
- budgeting your money
- tracking your money
- making your money grow
- organizing your financial life
- dealing with banks
- avoiding banking fees
- wisely opening a checking and saving account
- understanding banks financial products and how will they benefit you financially
- getting lower interest rates on everything
- paying deposits on things
- paying for college
- obtaining student loans
- getting a mortgage
- buying things such as a car and house
- buying household items such as furniture and appliances
- dealing with the cost of utiliities such your electric service, water service, and cable service
- retirement accounts
- dealing with Income Taxes both federal and state
- buying insurance
- investing
- being frugal
- knowing when to spend and when to save
- and many more
Having the ability to handle any of the above areas of your life in a way that will bring a positive financial outcome will show that you are somewhat financially literate.
Hi, I'm Abbie.
Your financial
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