Financial literacy helps you to make the most of the money you have. It has been referred to as “the great equalizer”. How so? Think about how rich people go broke. It’s a lack of financial literacy. A broke person who builds wealth gained financial literacy somewhere along the way. Hence, how financial literacy can be called the great equalizer. 

Financial Literacy Definition

What is financial literacy? It is the ability to understand and make effective use of your money. These include having skills like paying bills, budgeting, building and maintaining credit, saving, and investing. 

How to Gain Financial Literacy

There are two things you need to gain financial literacy:

1. Knowledge
2. Practice

How you obtain the knowledge depends on how you learn best. Some options are by reading books, watching YouTube videos, listening to podcasts, taking courses, etc. Which of these options is your preferred learning method? Looks for resources in that category to help you learn more.

READ MORE: Tools for Financial Success

Once you have the knowledge, you need to put it into practice. Very important: don’t wait until you feel you understand everything to start applying what you’ve learned. There are steps you can take in real-time before you feel you have a full grasp of financial literacy. So take the steps you can as soon as you can.

READ MORE: How To Take Steps Toward Financial Freedom Without Being Rich Numbers You Need to Know to Control Your Money

Books for Financial Literacy

One of my favorites is The Simple Path to Wealth. Jim Collins wrote this book for his daughter who hadn’t yet taken an interest in personal finance. He wrote out a simple plan she could follow to grow her wealth. Now you can too! 

Check out more book suggestions by clicking HERE.

READ MORE: Tools For Financial Success – Books

Financial Literacy Topics

Here are a few blog posts written over the years that tackle different aspects of personal finance. Key point is to create the biggest gap you can between your expenses and your income. 

1. Managing Bills & Decreasing Expenses

• How I Saved Hundreds by Getting New Car Insurance
• Four Compelling Reasons to Cancel Some of Your Subscriptions
• How to save money caring for man’s best friend
• How To Save More Money on Your Electric Bill
• How to Save Way More Money on Car Insurance 
• Simple Ways to Save Money on Groceries
• Stop Paying ATM Fees!
• How to Save While Buying on Amazon
• How to save on your mortgage

2. Budgeting: How I Came Up With My Budget
3. Increase income

• Let’s Negotiate!
• I Did Uber Eats for a Week – Learn How to Best Use It to Actually Make Money   Rent or Sell What You Don’t Use

4. Saving

• How to Save Money and See Results
• The Best Way to Successfully Build An Emergency Fund

5. Debt repayment: 4 Steps to Being Debt Free
6. Investing

• Investing with Stash – Great App for Beginner Investors
• ETFs versus Mutual Funds: Which Should You Be Investing In?     
• Why You Should Have Money In An IRA Now
• How to Make the Best Use of Limit Orders
• How to Invest – What You Need to Know About Using Mutual Funds
• Why Invest in the Stock Market Today

Financial Literacy for Beginners

So how do you get started? First, I would look around to the people in your life. Is there anyone who has the skills you are looking to gain? Maybe a family member who is good at saving or a co-worker who paid down a ton of debt. Talk to these people (if you’re comfortable) and learn more about how they make it work. 

Can’t find anyone around you? Create it. This can be by seeking new friends who are managing their money the way you’d like to. You can also join online groups of like-minded people or simply by reading books, listening to podcasts, etc of people whose habits you want to adopt.

Financial Literacy Quotes

“What doesn’t get measured, doesn’t get managed.”

“Beware of little expenses. A small leak will sink a great ship.” – Benjamin Franklin

“The desire of gold is not for gold. It is for freedom.” – Ralph Waldo Emerson

“All things are difficult before they are easy.”

“The dream is free. The hustle is sold separately.”

“Be stubborn about your goals. Be flexible about your methods.”

Financial Literacy Month

April is financial literacy month. It’s a great time to learn more about what it means to be in control of your money. Which aspect of your finances seems confusing or difficult to manage? Start there. 

Financial Literacy Course

I never took any financial literacy courses. I personally learned through podcasts mainly and Investopedia’s Term of the Day Emails. However, if you want more structure, here’s a list from another website that lists free online courses.

If you want to pay to get your money in order, you can either hire a fiduciary financial advisor or sign up for a program like The Financial Gym. I’ve never used either so I can’t speak from personal experience. However, you can check them out and see if they’re a good fit for you. 

In conclusion, financial literacy is an important skill for managing your money effectively. It will help you to identify where money is coming in and going out. By learning to manage your money well, you will work your way toward financial freedom. Who doesn’t want that?

READ MORE: How To Take Steps Toward Financial Freedom Without Being Rich