Business

Why is Financial Literacy Important?

Why is financial literacy?

Why is financial literacy?I am extremely passionate about financial literacy and have dedicated my career to helping others learn the basic principles for success. I have written best-selling books on the topic, as well as given countless speeches all over the world about the value of this knowledge. I even developed a popular financial literacy board game so that teenagers can begin to set the foundation for their financial future. My work will not end until everyone—young and old—has the tools to master financial literacy.

Financial Literacy Facts

Unfortunately, the statistics regarding financial literacy are very troubling: Nearly two-thirds of Americans are unable to pass a basic financial literacy test. They do not understand interest rates, debt and how to budget. The consequences of lacking this basic knowledge are dire, including the potential of incurring massive debt and going bankrupt.

Sadly, many students are at risk since many borrow enormous amounts of money for tuition, but only a handful understand the implications of doing so. Many don’t grasp the ramifications of graduating with massive debt and how this this will affect their quality of life upon graduating. They also are unaware that student loans cannot be easily unburdened, even if you file for bankruptcy.  

Financial Illiteracy Crisis

Financial illiteracy is not confined to students or the poor; the middle class also struggles with this. This is seen in the looming retirement crisis: One-third of Americans have nothing saved for retirement, while one-half have less than $15,000 saved. With the massive Baby Boom generation retiring, this is a serious problem.

Unfortunately, many Americans go through life without having a financial strategy for saving money on a regular basis, let alone for the long-term. Developing a program will keep you on track and secure your financial future. In a previous post, I explain how to effectively do this.

Benefits of Financial Literacy

Financial literacy is an essential building block to a prosperous future. The benefits are numerous, including the following:

  • The knowledge needed to budget, invest and save successfully
  • A greater ability to prepare for retirement
  • Improved odds of building generational wealth (you can impart these lessons to your children)
  • A greater understanding of common debt traps and how to avoid them
  • Less risk of falling prey to financial scams

By being proficient in financial literacy principles, you and your family will be able to enjoy life now and in the future.

Moving Forward

Education is the best antidote to financial illiteracy; and you are never too young to start learning about this important subject. Be proactive and use as many resources as possible to arm you with the knowledge you need.  There are federal and local programs available to help you with basic financial principles. You can also read some books I have written on the subject, including Your Financial Mastery: Financial Literacy for the Real World and Save Wisely Spend Happily.

Contact me today for help mastering financial literacy and building a prosperous future.

Contact Sharon

Name(Required)

Previous Post Next Post

Recent Posts

Find Your Mastermind

How to Find Your Mastermind

Your associations are among the most valuable resources you have. Are you part of a Mastermind?  If so, is it helping you speed your way to success?  Here are a …

Read More