Personal Financial literacy is the ability to understand and manage money so that you can make better financial choices. This is the first step to attaining control and stability in your financial life.
As a society, we have gone off track when it comes to our finances. The habits of our fast paced culture that demands we get everything we want NOW, has crept into our finances as well. So what if there is a sale? We don’t have to go now! So what if you receive a text message when you are driving? It can wait until later!
Generally speaking, our routines as a society have an element of urgency. When you take the time to stop and ask yourself what the rush is, most of us don’t know. We don’t have the slightest idea of the direction we are taking or what we want to be when we grow up. Even those who have a sense of what their goals are most of the time aren’t taking actions that reflect their direction in life.
According to the National Foundation for Credit Counseling March 2011 consumer research:
1. Americans continue to learn about personal finance primarily from their parents or at home (42%)
2. 3 in 4 (76%) admit they could benefit from a financial professional’s advice and answers to everyday financial questions.
3. Many adults (41%) would give themselves a grade of C, D, or F on their knowledge of personal finance, marking a statistically significant increase from 2010, when just about 1 in 3 rated their financial knowledge so poorly
The good news is that it’s never too late to get back on track! The damage may be deep, but stay encouraged! With a road map, determination, sacrifice, time and patience, we can all hop back on the right track.
Some people are blessed with more money and stability providing them with more opportunities to clean up their financial lives easily if they got their finances organized. Even if you don’t have a lot of money, if you stay focused and organized, you can earn your way to wealth too.
As we better ourselves and straighten out our financial lives, our behaviors have a ripple effect on those around us including our friends and families.