Gain knowledge and education about the world of personal and business finance. Every issue is packed full of insightful ways to manage your financial future for you, your business, your nonprofit or your family and friends. Choose from 1 quarter (1 issue), 2 quarters (6-months or 2 issues), 4 quarters (1-year or 4 issues), 8 quarters (2-years or 8 issues) or 12 quarters (3-years or 12 issues) by subscription. Listed here is the 1-year subscription price. This is a “Strive For 5” Product, meaning 5.0% of the sale goes to the BOSSED Foundation, Inc. to help us support and promote Financial Literacy.
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So, please enjoy the latest edition of BOSSED Foundation, Inc. Financial Literacy Publication “7 Tips for Breaking the Cycle of Poverty”.
We all spend money, but how many of us really know how to properly manage our money? This skill – or the lack of it – is referred to as “financial literacy” in the same manner as “literacy” gauges how well a person can read. A lot of people might say they are not very literate when it comes to finances. Financial literacy is defined as the ability to understand how money works. But this simple definition has broad ramifications. For instance, how well do consumers resist temptation to spend more than they earn? Have they invested in themselves, their family or charities? To have an impressive amount of financial literacy, it seems best to do things that are not exciting, at least initially. Be frugal. Prepare. Track your spending. Legendary businessman Warren Buffett is considered a genius at investing, yet his approach is simple. “You only have to do a very few things right in your life so long as you don’t do too many things wrong,” he said. Buffett is a thrifty guy who always avoided debt and extravagant living and still resides in the home he bought in 1958. As he has done with his housing, he does with stock. He buys and keeps it.
Here are the five key concepts, as listed by FORBES, to work on in order to improve your financial literacy. Mastering these aspects won’t always be easy but, with a little bit of practice, will benefit you for a lifetime.
1. Budgeting Basics
Creating and maintaining a budget is one of the most basic aspects of staying on top of your finances. In this modern day, it’s easier than ever to create a budget with the help of websites and apps.
It doesn’t matter if math isn’t your strong suit – thanks to these user-friendly tools, everyone can get help with keeping their finances on track. And, when utilized properly, they’ll keep you in the know about where your money is actually going.
Without following a budget, it’s difficult to hold yourself accountable on where your money is coming from and what it’s going toward, so mastering the basics of budgeting is where any financial novice should begin.
2. The Impact of Interest
While you may touch upon the concepts within a mathematics course, it’s important to understand different aspects, like compound interest. Why? Not only can it help you save even more, but it can make the difference between borrowing a small amount and paying back much more than you need to for years to come.
Understanding the ins and outs of interest can impact your finances more than you likely realize, so it’s an important concept to gain a better understand of early on in life.
3. Staying Savvy by Saving
Obviously, saving is an important aspects of maintaining a healthy financial situation. But, the majority of students don’t prioritize this aspect as much as they should. It’s easy to ignore things like retirement since it seems so far off in the future.
Learning to save early on can help you gain the knowledge, practice and set of skills you’ll utilize throughout your entire life.
Beginners can start working on this concept in the simplest sense, like saving money for a higher-ticket item they desire. Working toward a goal is key here and students need to understand that there’s a lot of value in paying yourself first – because the bills will always be there. Having peace of mind? Well, that comes with practice, diligence and patience, all qualities you’ll develop when mastering your savings skill set.
4. The Credit-Debt Roller-coaster
Maybe roller-coaster isn’t the right term – perhaps, downward spiral is more accurate. Meaning: it’s much easier to lose credit than gain it and many students don’t realize how easy it is to ruin their credit – and how difficult it can be to regain credit – before it’s too late. That’s why it’s crucial to provide knowledge on debt earlier than later.
Credit can be an extremely useful tool – if it’s managed correctly. Making rash decisions when you’re young can end up costing you throughout adulthood so it’s important to grasp the concepts and tools behind responsible credit practices as early on as possible.
5. Identity Theft Issues & Safety
In this modern day and age, identity theft is more prevalent than ever. Since everything is digital and just about everyone has shopped online at one point or another, your financial information is more vulnerable to fraud. Understanding this concept, along with preventative measures, like password protection and limiting the amount of information shared online can be the key to maintaining safe accounts or, inversely, can lead to financial ruin.
While it’s not a fool proof science (people can be safe and things do still happen) it’s important to safeguard your finances as best as possible to avoid the threats that exist.
Financial literacy is attainable. It just takes knowledge, education and becoming more financially savvy to be possible.