Financial Literacy Leads to Healthier Living Having money management skills is one of the most important things you can do to live a healthy, happy, and secure life. Your level of understanding of the basics of budgeting, saving, debt and investing affects every aspect of your life. Having basic personal financial skills is one of the most important things you can do to live a healthy, happy and safe life. Your level of understanding of the fundamentals of budgeting, saving, debt, and investing will have an impact on every aspect of your life and can make the difference between prosperity and poverty.
Educating students in personal finance will only benefit them in the future. Personal finance courses generally cover topics such as investing, saving for retirement, and maintaining good credit. Taking these courses will help students gain financial literacy, make smart decisions with their money, and guide them to a comfortable and independent life. When it comes to saving, the mantra is to spend what is left after saving.
Usually, people tend to follow the reverse rule: they spend and then save, which is not the right way to carry out personal financial management. Personal financial literacy makes you aware of the importance of saving money in life and informs you about ways to do it. By saving more, you can create a financial cushion that leads to financial independence in the future. More than three-quarters (77%) of respondents believe politicians should push to add financial literacy in schools, and 67% of respondents would prefer to vote for a candidate who prioritizes adding compulsory personal financial education to the public school curriculum.
NGPF has a step-by-step plan, tested in thousands of high schools, to help you expand access to financial education in your community. Ideally, personal finance concepts should be taught in elementary, middle and high school, and should continue in college. While financial literacy may vary with education and income levels, research shows that consumers with high education and high incomes may be as ignorant about financial problems as consumers with less education and lower incomes (although, in general, the latter tend to have less financial literacy). A statistically significant association was found between negative financial habits, such as gambling among young Australians, and the influence of peers and parents (Science Direct).
Those who are financially illiterate are less likely to have a checking account, emergency fund or retirement plan for difficult days, or to own stock. Everyone can relate to this stress; even the richest people have had financial problems at one time or another. Those pleasantly surprised by the myriad benefits that come from financial literacy should also keep in mind that such knowledge is much easier to acquire through an accredited education program than through other means. And financial literacy is important because, if you learn it, it will teach you how to be efficient with your finances so that you can achieve more goals and the goals you have, faster.
The Federal Deposit Corporation (FDIC) analyzed the medium-term impact of a financial education program on consumer behavior and confidence 6 to 12 months after the program ended. Therefore, you need to know the pros and cons of these financial products in order to make a good investment decision. These documents show that personal finance training leads to greater knowledge of financial products, more efficient budgeting, and more dollars being sent to retirement accounts to build a financially secure future. For those graduates who choose to pursue higher education, personal finance education at college is often scant and scattered, with few universities offering a personal finance elective and even fewer requiring personal finance instruction as a graduation requirement.
Every few years, the Financial Industry Regulatory Authority (FINRA) issues a brief financial literacy test as part of its National Financial Capability Study. . .
