As I get older, I hear more and more about the importance of financial literacy (see My Account Course). To be frank, anything to do with math and finances makes my brain freeze (see She Leads Africa). I failed to grasp the concept of business studies in high school. Fourth-grade economics is all I know, and don’t get me started on my disastrous relationship with accounts. If my commercial subjects teachers were to remember me, I know it would be the eternal disappointment of having had me as their pupil.
So what is financial literacy?
To keep things simple, financial literacy is the possession of skills that allow people to make smart decisions with their money.
For some reason, it’s something conveniently left out of the curriculum; and it’s also why people live paycheck to paycheck. You know, serving instead of living. I still don’t know what taxes are. Yikes.
To have great financial literacy, one must be able to
- Balance a chequebook
- Understand personal income tax
- Understand budgeting!!!
Just the bare necessities of or surviving capitalism.
No biggie.
How to become self-taught:
Read: there’re plenty of books and online resources to use to your advantage. Dedicate whatever amount of time you have to read about financial literacy. (see Invested Wallets)
Use Money Tools: money tools are resources that make your life about one hundred times easier! They help you reach your goals by helping you budget and invest. If you’re a foodie like me, you’ll need to learn ways to maintain your indulgent lifestyle and you can’t do that if you’re broke.
YouTube and Podcasts (are your best friend): if you’re not a reader, you can watch videos and listen to podcasts on how to monetarily organize yourself.
Get over your aversion for mathematics: I’m not a mathematician myself but money is math, unfortunately. You’ll need to get reacquainted with percentages, simple and compound interest, as well as your basic math. On the bright side, it’s not y=mx+b.
Unlearn the consumer mentality: many of us love to spend, some like to show, and others feel the need to keep up with whatever’s à la mode. You don’t need a new iPhone every other year, nor do you need that overpriced shirt.
“If you can’t buy it twice, you can’t afford it.” – Jay-Z
Lastly: FREE ONLINE COURSES! This an efficient and beneficial way of learning about financial literacy available at your disposal.
What You Reap:
Control: imagine no longer living paycheck to paycheck. They say you can’t buy happiness but in this capitalist society where only a few enjoy the benefits of money, money can solve a lot of problems. Being financially in control will make one feel more confident with the moves they make.
No Debt: it speaks for itself.
The ability to identify fraud: being financially illiterate are being preyed on. They’re many businesses, banks, and schemes that will leave you scammed and finessed. Stay woke, folks.
Having realistic financial goals: this too stems from being in control of your finances and it enables you to set goals you’d like to achieve.
Lastly…folks, please move silently. No one needs to know your every step. Be about you and yours.
Written by Theresa Ntswaki
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