What does financial literacy mean?

What does financial literacy really mean? Put simply, financial literacy involves having the ability to understand financial concepts such as budgeting, saving, investing, debt management, insurance, and retirement planning.

April is financial literacy month. Being financially literate is an essential life skill meaning that you can effectively manage your financial resources, avoid financial pitfalls, and make sound financial decisions based on your goals and circumstances. It’s important because you are then better equipped to make informed decisions that can improve your overall financial well-being and help with reaching your financial goals.

Literacy can help you avoid financial pitfalls, make better financial decisions and improve your overall financial health. In today’s world, the financial landscape is constantly changing, so it’s more important than ever to manage a personal budget, evaluate financial products, and assess risk.

Financial coaches are professionals that can be a valuable resource when you’re learning your way around budgeting and debt management. Coaches teach you skills and tools to help you gain control over your finances. See this post about coaching services: https://thumbprint-consulting.com/what-is-a-financial-coach/

Living paycheck to paycheck has become the American way of life for many. Although you should enjoy life and live it to the fullest, that doesn’t mean you should be reckless with your finances. Our current culture is all about immediate gratification which quickly leads to drowning in debt and being a slave to your financial situation. Learn more about common money myths: https://thumbprint-consulting.com/4-common-money-myths/

See this Ramsey post for some stats on how the typical American handles money. It also shows the importance of the Senate decision in 2004 to make April Financial Literacy Month as a way to raise awareness: https://www.ramseysolutions.com/budgeting/top-money-statistics