I always considered myself a math person. Someone who excelled in any class that involved numbers and a self-proclaimed spreadsheet nerd. Though my ability to crunch numbers served me well throughout my school years, I felt inadequately prepared to manage my personal finances as I navigated all the financial requirements that come with adulthood. Does this sound familiar??
The problem is that the educational system does not teach us the necessary information to be financially literate. Financial literacy can be defined as the knowledge to make informed and effective decisions with our personal financial resources.
The Financial Literacy Epidemic Is Real
You may be thinking you’re the only one that has inadequate financial literacy knowledge, but these glaring stats show the opposite.
- Only 24% of millennials have a basic understanding of financial literacy (GWU Financial Capability Report)
- 1 in 3 Americans save less than 10% of each paycheck (PurePoint Financial Report)
- 20% of Americans don’t save any of their annual income (CNBC)
- The average household with revolving credit card debt pays $1,162 in annual interest (NerdWallet)
- Americans have an outstanding student loan debt of $1.41 Trillion and an average of $35,359 per borrower (Investopedia)
Take Control Of Your Personal Financial Future
All pretty grim stats and we’re all doomed… right? The good news is it’s not all doom and gloom. Everyone’s financial situation is different, but by learning the fundamentals and getting started today you’ll be able to set yourself up for long-term success., There is no shortcut to turning your financial standing around…unless you want to let it ride on the Lottery (not recommended).
The first step in improving your financial standing, or for those that are in good standing, improving your future outlook, is to make sure you’re financially literate.
What is a mortgage?
What is a checking vs. savings account?
How do I save for retirement?
How do I pay down my student debt?
How does credit card interest work?
In this blog, we will cover a variety of personal finance topics to help you make sense of a complicated financial ecosystem and better take control of your financial well-being. I wish that I was taught basic personal finance at an early age so that I didn’t have to stumble through my 20s, learning the hardships that debt and lack of savings force upon you. Learn from our struggles and victories.
We hope you find this section on Personal Finance SLIGHTLY EDUCATIONAL.
