9 Tips To Improve Financial Literacy

by Ashley Nielsen
Ways To Improve Financial Literacy photo

Improving your financial literacy is a process. Get started by taking these steps to get better with money and improve your personal finances.

Want to learn how to better manage your finances? Try improving your financial literacy. Financial literacy is having the skills and understanding of how to save, invest, and manage your debt to improve your financial health. You can improve your financial literacy in several different ways, but what’s most important is that you build the basic foundation for better money habits. Here are a few tips to improve your financial literacy.

1. Read Newsletters

Many companies create financial newsletters to help potential customers understand the basic skills they need to manage their personal finances. If you’re not already subscribed to financial newsletters, you can look at different blogs or organizations specializing in personal finance and subscribe to receive a weekly or monthly newsletter complete with all the tips and tricks you need to save money or invest.

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2. Read Books

One of the easiest ways to improve your financial literacy is to read about different financial topics, including mortgages, personal loans, money management, investing, and saving. There’s a book for everything you need to learn to improve your financial literacy, but if you don’t know where to start, you can go to your local library and scan their selection.

When looking for a personal finance book, consider your goals. For example, if you want to pay off debt, look for a book with different ways you can start paying off your debt as soon as possible. Meanwhile, if you want to learn simple ways to invest your money, you can purchase a book on stocks, CDs, and bonds.

3. Listen to Podcasts

Maybe you don’t have time to read every newsletter you get, but you can always find time to listen to a podcast. Personal finance podcasts are a great way for you to improve your financial literacy and learn tricks of the trade while you’re doing other things like commuting to work or running errands.

4. Visit Personal Finance Sites

Books are always a great resource, but sometimes you may run across one that’s a little dated at your local library. You can ensure you’re getting the most relevant, up-to-date information about personal finance by visiting personal finance sites that allow you to read articles about loans, banks, credit unions, and money habits.

There are hundreds of thousands of articles out there, but always choose ones that are on a finance website. Of course, many bloggers also have great tips and tricks for the average person, but you’ll need to ensure you’re following the advice of someone with experience helping others improve their financial situations.

5. Use the Right Tools

Managing your money can be difficult, especially if you have different accounts at various banks and credit cards through different companies. Using tools like money management apps that show you how much money you’re bringing in versus making across all of your bank accounts can help you learn more about your own spending habits.

The more often you use the app, the more savings you can find by looking at your spending. You never know what types of subscriptions you’ve been wasting money on, so use an app to help you find the best ways to save money and understand your everyday financial habits.

6. Talk to an Advisor

Sometimes you just need to talk to a professional to help you understand your current financial situation and give you advice based on your circumstances. Everyone’s financial situation is different, but advisors can help you find the best solutions to help you become more financially healthy. A financial advisor can help you figure out the best way to pay off debt, open up a retirement account, and give you advice on how to invest your money.

Financial advisors are great resources when you have a complicated issue because they can provide you with the necessary advice to help you. While reading books and websites can help you learn a lot, they’re not specifically designed to help your situation. Meanwhile, an advisor will learn everything about your finances to help you make better decisions.

7. Take a Course

Taking a personal finance course at your local community college or online can help you learn more ways to improve your financial health. Many of these resources aim to improve your understanding of different aspects of finance, whether it’s saving money or paying down debt. Depending on your needs, you may also be able to find a course that’s targeted for your unique situation. For example, you can find a course on investing in stocks or saving for retirement.

8. Set Goals

You can’t reach your financial goals if you never set them. Everyone should have short-term financial goals they work towards every day and long-term goals that help them make better decisions with their money. Short-term goals could be anything from having a specific amount of money from each paycheck or paying down one credit card before moving on to another. Meanwhile, a long-term goal may be saving for a big financial purchase or paying off a major debt like your student loans.

9. Understand What You’re Getting Yourself Into

If you really want to have better spending habits, you must understand what you’re getting into when you take out a loan or get a new credit card. If there’s anything that ever comes with a monthly bill, you must understand the types of fees you can expect. For example, you have late fees up to a certain amount when using a credit card to pay for something.

Always understand what you’re getting into when taking out a line of credit or a loan because it can impact your financial health. Everything from a credit card you only use for gas to a personal loan to pay for home repairs puts you further into debt.

Final Thoughts

Improving your financial literacy is a process. Not everyone has great money management skills at first because they’re something you must learn over time and through experience. By taking every opportunity you have to learn about personal finance, you can improve your financial literacy and start putting it into practice. Of course, you may make a few mistakes along the way, but eventually, you’ll be able to manage your money more effectively.

Reviewed August 2022

About the Author

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer where she shares knowledge about general business, marketing, lifestyle, wellness or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.

Get better with money.

Subscribe to get a daily dose of money-saving content aimed at helping you get better with money, fix your finances, and live better for less.

Since one of the biggest hurdles to achieving financial independence is debt, subscribers get a copy of Do You Have Too Much Debt? A Checklist and Solutions for FREE!

We respect your privacy. Unsubscribe at any time.

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Fix your finances.

Subscribe to get a daily dose of money-saving content aimed at helping you get better with money, fix your finances, and live better for less.

Since one of the biggest hurdles to achieving financial independence is debt, subscribers get a copy of Do You Have Too Much Debt? A Checklist and Solutions for FREE!

We respect your privacy. Unsubscribe at any time.

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