Understanding financial basics thus allows you and others to make smarter money choices and are able to be self-sufficient in financial decisions. Since you might not have had any classes or had much insight, it’s up to you to become financially literate and develop good financial habits.
Luckily, with the digital age and abundant amount of information, you can learn finances relatively fast. Everyone is at a different learning curve and pending your life’s schedule, it may take you some time. That being said, here are some simple ways to help you become financially literate.
1. Hit the Books
In order to get started, personal finance books will become key in your quest to be financially literate. It was crucial for my education, especially coming from no background in finance or investing. Dedicate a minimum of 1-2 hours each week to reading books about managing your money, investing, how to budget, etc.
2. Read Magazines and Online Publishers
I find books to be the most important, but financial magazines and online publications can be equally important to your financial education. Think publications like Kiplinger, Financial Times, Fortune, and there are tons of personal finance bloggers.
3. Use Financial Management Tools
Managing your finances and money doesn’t have to be hard or boring. Thanks to the tech and the internet, there is an abundance of money tools to help you be more proficient. But besides helping you organize and visualize your life, these financial resources can help you learn a lot too. Many of these tools have great learning centers or blogs.
4. Listen to Money Podcasts
Being able to dedicate time to reading can be challenging. You may have a busy work and family life, which is exactly why podcasts are perfect. And there are many great ones you can listen to on your way to or from work, doing chores, or even at work (if it doesn’t disrupt your productivity).
5. Take a Financial Literacy Course
So besides books and online publications, you can totally get involved in a financial literacy class or course. Whether that is at an online school, college course, adult education center, etc. This is if you feel you want to go a step further or need the structure to learn. Many are paid, but there are some free courses online that can be a great educator too.
6. Get Your Math On
For you to be financially literate, you’ll need to bust out some of the most basic math skills. Brush up on some math or look into some basic formulas that can help you organize your money, savings percentages, and help you to budget.
7. Break Your Consumer Mentality
We are targeted with ads EVERYWHERE, media promotes lavish lifestyles, social media makes of envious of others possessions, we worry too much about what others have, etc. Over your financial literacy journey, you’ll learn to break the consumer mentality and developer an investor mentality.
How can you make your money go to work for you, instead of some instant gratification of items you lose interest in quickly? That’s the key question to break a bad consumer habit.