Money & You

How do you know when you’re money smart?

May 6, 2023

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:

  • Understanding the different kinds of savings accounts.
  • Being able to explain the difference between fixed and variable rate loans.
  • Knowing how debt consolidation works and when it might be a good choice.

Skills. You can apply your financial knowledge in practical ways. This might include:

  • Building and sticking to a sustainable household budget.
  • Creating ambitious but achievable financial goals for the short and long term.
  • Making smart, risk-appropriate investments to help build your wealth.

Confidence. You don’t try and second-guess yourself! You’ll know you have financial confidence when you’re:

  • Talking to friends and family about money without feeling embarrassed.
  • Helping your children understand money and how it affects them.
  • Not panicking when things go wrong - you know how to make things right.

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.

Related articles

Why our customer journey is about more than loans
Jane’s Sweetspot is making sure that our customer’s journey with us is about more than their loan.
November 1, 2024
Money Month: Pause and Get Sorted!
Sorted Money month provides us all with an opportunity to pause. If we pause we can take stock and come up with a plan.
August 8, 2024
Why hibernating isn't always good for your pocket
When all metrics point to a cold economic spell for many families, it's crucial to know where we can help ourselves.
July 9, 2024

Join Our Tribe

Sign up for our newsletter to receive exclusive money tips, educational resources, and the latest updates on personal finance. Join our tribe today and take control of your financial future!

* indicates required
Money Sweetspot provides financial reset debt consolidation loans to help you take charge of your financial life, reduce debts and get on with living.

You are protected by responsible lending laws. Because of these protections, the recommendations given to you about our loan products are not regulated financial advice. This means that duties and requirements imposed on people who give financial advice do not apply to these recommendations. This includes a duty to comply with a code of conduct and a requirement to be licensed. Responsible lending criteria, rates, fees and contract terms apply. For more information visit useful information.

© 2024 Money Sweet Spot Limited