April is National Financial Literacy Month and we already know that you are completely well-versed in everything financial literacy is…or are you?
Be honest with yourself, do you balance your checkbook? Do you keep a thorough record of everything you spend? Do you keep track of where every dollar you earn is going to avoid wasting money?
It’s okay if you answered “no” to any of those questions! Quite frankly, most people do. Financial literacy isn’t about having a completely perfect relationship with money. Let’s be realistic, that’s pretty much unattainable. We all have our strengths and weaknesses when it comes to our finances and how we manage them.
It’s okay to make mistakes as long as we learn from them.
Let’s dive a little deeper into the topic of financial literacy.
What is Financial Literacy?
First of all, let’s talk about what financial literacy actually is.
Financial literacy is defined as the ability to understand and manage your money effectively. It involves having the knowledge and skill set to make educated and responsible decisions about personal finance matters like budgeting, saving, investing, and managing debt.
So, basically, financial literacy is just knowing enough about money to manage your own wisely and make decisions that will have a positive impact on your finances rather than a negative one.
Do You Have Financial Literacy?
We know that you’re successful. You have the great job with a steady income, you have the house, the car, the title, you have it all. You might think that your relationship with money couldn’t get any better but if you’re truly being honest with yourself, are there things you know you could improve upon? Are you maybe overspending in certain areas of your life? Do you have some debt that you’ve just been sweeping under the rug?
Even people who make exceptional income and seem to have it all struggle!
Even if you don’t struggle with debt, what about managing your wealth and investing it?
Did you know that according to the US Census Bureau, 50% of women and 47% of men between the ages of 55 and 65 have no retirement savings.
Whether it’s because you’re living from paycheck to paycheck or you’re simply living outside of your means and it’s preventing you from saving, you need a plan and safety net for your future.
How do you ensure that your finances stay healthy, and you continue to manage them wisely? How do you take your financial future to the next level? That’s where Aha! Financial comes in!
How to Improve Your Financial Literacy
Financial literacy is essential for a myriad of reasons including making wise financial decisions for yourself and your family, avoiding financial issues and problems, and achieving your financial goals and having continued success with money throughout your life.
Here are a few ways you can improve your financial literacy and how Aha! Financial can help you do just that.
- Make sure you understand the main things – Before you dive headfirst into investing and retirement plans, make sure you know the basics of budgeting, saving, and managing debt. The best way to do this is to sit down and take a good, long look at your income, spending habits, and monthly expenses. Having a great financial advisor like Aha! Financial can help make this process feel a lot less tedious.
- Know how investing science works - there's a lot of noise out there about making 'bets' and and the latest hot strategies. Don't gamble with your hard earned money! Learn what works and what doesn't and apply proven long-term strategies.
- Build good financial habits - If you feel like you could improve your relationship with money, there's no time like the present! Building awareness is a crucial first step. Take 30 minutes and estimate where and how much you spend each month. Make a list and then track what you actually spend during the next month. Notice what you learn and ask yourself where you could make some adjustments that would allow you to save more or pay off debt. Note that as you become aware and more intentional, this will get easier and you won't have to track every penny.
- Seek advice from professionals – Becoming financially literate, while extremely important, is not always easy to do, especially when you don’t have a background in finances and have no idea where to start. Furthermore even when people know the right thing to do, they often don't do it. Aha! Financial has the expertise and knowledge to show you how to better your financial situation as well as to handle future situations that may arise.
The Best Choice of Financial Advisors
At Aha! Financial, we want you to have financial literacy. We want you to thrive and experience true financial freedom by budgeting, saving, and investing your money wisely. We don’t want the stress of debt and low savings to keep you up at night.
You deserve to enjoy your life without money being something that worries you or your family. At Aha! Financial we can help you have that with the wide variety of financial services we offer. We offer services in:
- Financial Planning
- Risk Analysis/Insurance
- Investment/Investment Coaching
- Education Planning/Coaching
- Cash Flow Planning
- Estate/Wealth Transfer Planning
- Retirement Planning
If you want to become more financially literate, we can help. Don’t spend any more time worrying about finances. Let us educate you.