Is Financial Literacy Really "That" Important?

Updated: Jan 30

Simple Answer - Yes. To be financially literate, we must understand how to effectively save, invest, manage debt, and budget. It is important that we are financially secure and confident in our ability to effectively manage our money. By understanding how to efficiently utilize every dollar of our income, we will be more likely to achieve a sense of financial stability and well-being. In fact, 90% of Americans report that Covid-19 has stacked heaps of stress on top of their personal finances (National Endowment for Financial Education). Additionally, roughly 50% of them worry about their dwindling savings and upcoming bills.

Even if we are able to survive the pandemic's financial burden, the United States faces economic crises every decade or so. These crises bring economic contraction and high unemployment. As the exact timing of these events is highly unpredictable, being financially knowledgeable can help us push through these tough times by having a large savings to fall back on.

Regardless of economic heath, financial literacy can be utilized within every area of our lives. For instance, we must be financially confident when we spend our money on family vacations, cars, college, and housing all require us to understand how to manage our money.

By knowing how to save, manage, spend, and invest money, we become financially secure and are ready to face these situations.

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