Financial literacy is important because it equips us with the knowledge and skills we need to manage money effectively, make financially responsible decisions, demonstrate a strong grasp of financial principles in order to understand and negotiate the financial landscape, and manage financial risks effectively to avoid financial pitfalls. Although understanding stats and facts about money is great, no one has truly grasped financial literacy until they can regularly do the right things with money that lead to the right financial outcomes.
Creating and maintaining a budget is one of the most basic aspects of staying on top of your finances. Without following a budget, it’s difficult to hold yourself accountable on where your money is coming from and what it’s going toward, so mastering the basics of budgeting is where any financial novice should begin. Saving is also an important aspect of maintaining a healthy financial situation. Learning to save early on can help you gain the knowledge, practice and set of skills you’ll utilize throughout your entire life. Managing your money demands constant attention to your spending and to your accounts and not living beyond your financial means.
The quickly changing environment created by technological advances such as electronic trading makes the financial market even swifter and more volatile. Now a global marketplace, there are many more participants in the market and many more factors that can influence it making the financial landscape much more dynamic.
Financial literacy is crucial in helping you or your business save enough to provide adequate income in retirement while avoiding high levels of debt that might result in bankruptcy, defaults, and foreclosures. Those with low financial literacy tend to borrow more, have less wealth and end up paying unnecessary fees for financial products.
Any improvement in financial literacy will have a profound impact on you and your ability to provide for the future.
Please call us today at 817-484-0212 to speak to us about our financial literacy services.