As our economy recovers from the effects of the pandemic, it’s crucial to understand how money works so you can make good habits and expand your opportunities. Research revealed that 67% of British people don’t feel well-equipped to make the best financial decisions for themselves. Therefore, talking about and understanding money will determine how well we cope through these times.
What is financial literacy?
If you’re interested in making the most out of your money, you might want to start to understand the concept of financial literacy. The easiest way to define it is ‘the basic understanding of finances that helps you deal with saving money, paying bills, debt management, investing, etc.’
Memorising some financial terms is good, but applying those concepts is what will make you self-sufficient!
The benefits of opening up about money
We know money can be an unpleasant subject, but as stressful as it can be, having positive conversations at home is a good starting point. It’s important to share your financial goals and start talking about your money habits. For example: familiarising young people with good money practices and having open conversations can show them that money should never control you, it’s the other way round.
How can I become more financial literate?
As most of us aren’t taught money management in school, it’s up to you to learn about money and develop good financial habits. Luckily, you can find valuable information out there to help you:
- Books and magazines: A good starting point is personal finance books. Dedicate time to reading about managing your money, debt investing, how to budget, etc.
- Financial management tools: There are several money tools to help you be more proficient while making it easy and fun. Many of these tools come in the shape of apps, blogs, games, calculators, etc.
- Discover new podcasts: Being able to dedicate time to reading can be complicated, which is why podcasts are a great alternative! There are many awesome money podcasts that you can listen to while you drive or do chores. Listen Money Matters – Not Your Father’s Personal Finance Podcast
- Explained: Money on Netflix.
- Take a course: Whenever you feel like stepping further, you can get enrolled in a financial literacy class or course. Many require payment, but there are some free courses online that can help you too.
What advice is available for me?
Seek the experts’ advice: If you are struggling with money, several organisations offer free information. We gathered a few options for you:
- Citizens Advice Bureau Birmingham: their advisers are specialised in debt problems and can help you identify the cause or amount you owe.
- Money Helper: this organisation focuses on delivering guidance regarding money and pension so you can make clearer choices.
- The Money Charity: this charity provides free advice as well as several useful money management apps.
If you have any other tips you would like to share, please get in touch with us.
Written by Fernanda Treviño
For Aspire4u CIC,
The Mindset-Led Organisation
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