Learning about money can feel overwhelming. Interest rates, taxes, loan structures, budgeting, rules and strategies and all sorts of jargon - it’s a lot to deal with. So how can you tell when you’re starting to get a handle on it?
While there are lots of ideas out there about what “financial literacy” looks like, the reality is that it all depends on what you want to get out of your money.
For some people, financial literacy is all about smashing down their debt and waving goodbye to their monthly repayments forever.
For others, it’s about saving and investing enough so that they can retire when they want to - or maybe even earlier!
And for yet more, financial literacy is about knowing enough about where their money is coming from - and where it’s going - to never have to worry about how much is in their bank account again. They know their lifestyle is secure.
Despite that, there are a few aspects that stay the same no matter how you view money. You’ll know that you have the basics of financial literacy mastered when you have these three things:
Knowledge. You understand the core aspects of how your money affects your life. This might include:
Skills. You can apply your financial knowledge in practical ways. This might include:
Confidence. You don’t try and second-guess yourself! You’ll know you have financial confidence when you’re:
With these three traits, you’ll have the ability to make financial decisions that promote self-sufficiency, stability, and well-being for yourself and your family. But remember! Money is mahi, and learning about finances is a lifelong pursuit. There’s always something new to master - but keep working on those three traits, and you’ll be well on your way to being a true money expert.
This was originally posted as an education article on the Money Sweetspot customer portal. If you read this as one of our customers, you would've earned some money off your loan! Do the mahi, get the treats. Find out more.
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