![]() ![]() Īnd often it can be difficult to know where to go to educate yourself. The majority of states have no requirements for students to learn even the rudiments of economics or financial planning, according to the Council for Economic Education. Teaching students about money and money management isn’t a priority in most schools. If you got through high school without learning how to make a budget, or that $200 charged on a high interest credit card can end up costing you $400 if you don’t pay off the balance, you’re in good company. I didn’t learn financial literacy in school! lack access to a basic financial education. Unfortunately, too many people in the U.S. And it means having goals for your financial future, which should include your retirement. It also means learning how to budget, plan, save, and invest. That way you won’t be wasting your cash, or getting yourself into debt, or taking unnecessary financial risks. It will also help you develop a financial plan for the future. It can help you manage your current life, while preparing you for unforeseen expenses and emergencies. In a nutshell, financial literacy means having the ability to assess your financial situation so you can make the right decisions about money on a daily basis. What does it mean to be financially literate? One reason could be that consumers tend to struggle with essential concepts, including numeracy, not knowing how an interest rate affects the cost to borrow money, how compounding can work to increase your personal wealth, and whether it’s safer to invest in a single stock or a mutual fund.įortunately, Congress has designated April Financial Literacy Month, and over the coming weeks, Stash plans to present you with articles, challenges, and other content that we hope will inform you and help test your knowledge of money.īut let’s start with the basics. In fact, lacking essential knowledge about money cost the average consumer nearly $1,389 in 2021, according to the National Financial Educators Council, a nonprofit group devoted to achieving financial literacy. Not knowing the basics about your finances can cost you big time. ![]()
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