David Lerner Associates: Financial Education is Your Best Investment
Ignorance can be costly, especially when it comes to your financial literacy. Investing time and energy into financial education could be one of the best investments you can make.
According to a study published by George Washington Global Financial Literacy Excellence Center (GFLEC), only 24% of young people demonstrate basic financial literacy. That’s a scary thought.
Miriam Webster defines IQ as “proficiency in or knowledge of a specified subject.” Your financial IQ depends on your ability to understand the various terms and concepts which make up the subject of finances. The truth is financial literacy is an essential skill you should develop, if your goal is to build financial security and well-being.
Financial literacy can provide a long list of advantages. It can increase your earning potential. It can increase your return on investment. It can improve the quality of your life and finances. It may help defend your portfolio from unnecessary losses. And it can provide peace of mind around money.
Peace of mind alone should be enough of an inspiration. According to the American Institute of Stress, over 70% of people experience physical or psychological symptoms caused by stress.
And what of the disadvantages? Well, it takes time, effort, and energy — that’s all. People are busy, and it takes a focused amount of time to educate oneself on anything. But when the pros exceed the cons by so much, should there be any hesitation?
The cost is low, the risk is negligible, and the rewards may be huge. Your financial intelligence can compound over time, just like your money.
Sir Ken Robinson may have said it best, “A gardener does not make a plant grow. The job of a gardener is to create optimal conditions.” Similarly with your financial education, it is your job to create the optimal conditions for your money to grow.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.
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