Dianna Mitchy on Financial Literacy and why it is a must 100 dollar bills

It’s safe to say that the financial climate we live in today is much different than that of our parents and grandparents. The value of the dollar, the value of credit, and the importance of financial literacy is more important now than ever. It’s no exaggeration to say that money is a major aspect of one’s life – no matter what era they live in.

Some people spend their entire life always looking for ways to make money; however, not enough are researching ways to save money and increase their financial capacity in a healthy way. Not enough people have learned how to “train” their money because they haven’t come to grips with what they think about money. For that reason, this modern day mindset calls for a lesson on personal finance, money management, and how to spend – because too many people simply don’t know! And above all of that, we HAVE to learn how to stop interlocking with emotional spending. That keeps us in debt, keeps us broke, and devalues our dollar.

Schools don’t educate students on money and how to save or properly spend. Families don’t seem to be doing this either, and I mean even middle and upper class families. Illiteracy does not discriminate. By the time our youth and young adults find out about the importance of their financial decisions, it’s too late. Credit scores are low, loans are taken out with no intention to consistently pay back, interest rates on credit cards delay repayment, debt accumulates, and we’re told THEN to figure out how to manage our financial affairs. But where was the advice before? Why aren’t there classes that teach high school students the importance of making their money work for them instead of just working for money?

Then we have an influx of financial advisors and while they’re telling you how to manage your money, they’re getting a large chunk of it. Imagine the savings you would have if you were managing your money on your own. After all, it IS YOUR money. Everybody is talking about generational wealth, when they can’t even take care of personal finances. Literacy comes first love. Here are 4 quick tips that you can implement to help you start taking control of your finances.

  1.  we need to keep track of our income – the money that comes in, ALL of it! We have to develop healthy habits of maintaining accurate records of our expenses. Every bill, every meal, every vehicle repair, every gallon of gas, every pair of pants and loaf of bread – we’ve got to track it and ensure we have a ledger of such. Then select a time to review that ledger that we keep – be it weekly, biweekly, or monthly. Viewing the trends of how you spend is important. Yea, I know you see a few things that you don’t need to be spending on, and the things you spend way too much on, I know. 
  2. We need to follow a budget. Having a list of necessary monthly needs is vital. This will help you make a list of the needs you have. Allotting specific amounts of money to specific places will help you not give where it’s not needed. And you’ll begin to strive for consistency in your money management.
  3. you need to know your financial cycles and save or spend according to those. For example, if you’re a business owner who has slow months December, January, and February, you have to recognize that unnecessary spending must be eliminated during those months. You also need to know that saving in the months before is vital for sustainability. This will free you from the aggravation of penny pinching and getting irritated when certain amounts aren’t coming in.
  4. know how to balance your checkbook. Yes, that may sound a little old fashioned and technology has made us lazy. But get back to the art of keeping track of your money the old way – writing it down and keeping a tab on everything, down to the last penny.

There’s a lot to learn about personal finances, especially once you are living on your own. Many students don’t know the genuine value of investments, saving money on a monthly basis, or the dangers of relying on credit, and how important it is to build that credit. It is a valuable life skill that will serve any individual for as long as they live. Financial literacy is the most important part of generating wealth, investing in yourself by making time to learn. Your future self will appreciate it.

Sukia Akiba

TheSoulSupplier.com

@TheSoulSupplier


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