Why Being Money-Smart Improves Your Future
This week is Money Smart Week.
What exactly does it mean to be "Money-Smart"?
It means understanding basic financial concepts, so you can make the best decisions and achieve your financial goals. Being Money Smart is not just about earning money, you also need to understand fundamental financial principles, such as how interest rates work, to make wise choices about how to use and invest your cash.
It's impossible to exaggerate the advantages of having a good financial education. Knowing and understanding the basic concepts of financial management and planning can help you avoid common mistakes. It can also help you achieve long-term financial security.
The FDIC Money Smart financial education program is one tool you could use to improve your financial skills.
Making Poor Financial Decisions
A lack of financial literacy can be detrimental. For example, if you don't understand how compound interest works, you could end up with a very large debt load on your credit cards. A novice investor may fall victim to fraud or choose high-risk investments that don't support their financial objectives.
"When you have a firm grasp of financial principles, you are better able to make wise financial judgments," says Martin Walcoe, President and CEO of David Lerner Associates. "You will be less likely to act rashly or make unwise financial decisions."
Money Smart education means you will become adept at setting up budgets, saving money, and making investments that support your financial objectives. So, what steps can you take to improve your financial knowledge and acumen?
Money Smart Tips
Become informed. Start by reading personal finance-related books, blogs, and articles. There are a ton of internet tools that can teach you about financial principles like budgeting, saving, investing, and debt management.
Play the Money Smart Games. These games will give you an insight into what you know and what you need to learn.
Attend a class. Think about enrolling in a personal finance course or going to a session on money management. Personal finance courses are widely offered online and at many community colleges and universities.
Ask for advice. Speak with an investment counselor or advisor who can assist you in creating a unique financial strategy. They can assist you in setting financial objectives, making a budget, and making sensible financial decisions.
Develop sound financial practices. Start by keeping a spending log, making a budget, and setting aside money in a savings account regularly you’ll gain a better grasp of how money functions and how to use it to achieve your goals by developing healthy financial habits.
Learn from others. Consult those who have been successful financially. Ask about their financial management strategies over the years and any advice they may have for obtaining financial security.
Making wise financial decisions and achieving long-term financial security requires having a thorough understanding of financial principles. Use these resources and get more Money Smart, so you can make better financial decisions for your future.
Get educated, get good advice, and create great financial habits.
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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