The Importance of Financial Literacy - 3 Ways to Get Started
Financial literacy is a practical skill that people generally learn from school. However, its purpose and function in your life extend beyond its place in a university. Many individuals struggle with managing their finances after they move out and get their first job. This is why you need to take control of your financial situation to better prepare for your future.
How to learn about financial literacy
Financial literacy equips you with the knowledge of making informed decisions on how you should handle your money. It contains all you need to know about budgeting, taxes, investing, and real estate.
People have different learning curves when learning a new skill, even for something as crucial as financial literacy. Thankfully, there are many ways to get started on your journey to making better financial choices.
If you want to learn more about financial literacy, here are three ways to get started:
1. Read a book about specific financial topics
Financial literacy is a subject as old as time, with many authors from different backgrounds to educate you about its concepts. If you’re a more traditional learner, you can pick up a book to learn the basic concepts of what you can and should do for different financial matters.
Depending on what topic you want to tackle, you can choose from various financial experts. If you wish to cut down on your debt, increase your savings, or learn more about investing in stocks, there’s a book out there to fit your needs.
2. Listen to financial podcasts
Most of us lead busy lives of going to our full-time jobs, making it challenging to attend consultations or classes that teach financial literacy. Thankfully, you can now digest information in different forms of media.
The popularity of audio as a medium has recently gained popularity again with the introduction of different streaming services. Podcasts have different genres that range from people talking about conspiracy theories to financial advice. If you can’t squeeze in the time to learn about financial literacy, you can listen to podcasts while doing other activities such as taking a bath or heading to work.
3. Consult with a financial advisor
Although the options above are great for learning the basics, the best way to learn is to be in the presence of an expert. Instead of listening to general advice, consulting with a financial adviser will help you receive specific answers to your financial dilemmas.
A financial advisor's role is to help individuals create their roadmap towards financial independence. They can help you plot out a long-term plan for strategies and investments to reach your financial goals. Whether you’re planning to move into a new home or saving up for a brand-new car, a financial adviser will assess your situation and enable you to make the right choices.
Understanding the basic concepts of financial literacy doesn’t happen overnight, which is why you should be open to constant learning. Learning is a long-term commitment, so you have to be willing to put in the hours if you want to make the right decisions in the future. Keep in mind that being more educated now will help you make better decisions as you reach your retirement years.
Urbanwallet employs a team of African American financial planners in Miami, Florida, to help urban millennials learn more about black financial literacy. Sign up with our mailing list to begin your first step towards saving for your future!