Financial Literacy

Financial literacy is the understanding of financial concepts including credit, budgeting, cash-flow, real estate, investing, savings and debt management that leads to an overall sense of financial well-being.

Financial literacy is important because it provides people with the knowledge and skill required to manage their financial lives effectively. Without people financial decisions and the actions they take or don’t take will determine if they are able to build personal wealth.

When it comes to financial literacy, the playing field is far from level. Even with the economic growth and strong employment, studies have found that the wealth gap between haves and have-nots is getting wider. The reasons for this gap may vary based on income, assets owned and education, though when it comes to building personal wealth financial literacy is the key to decreasing the wealth gap.

Becoming financial literate does not mean you have to go college or take courses in finance. Becoming financially literate is about learning and understanding financial transactions in order to make informed financial decisions that are beneficial for you. When you are financially literate you can better manage your finances.

People that are financially literate have less financial stress, get approved for more for credit, save more money and manage their financial affairs more effectively.

There are several things you should understand when it comes to your personal finances:

1. Your credit scores
2. Your debt ratio
3. Your net worth 
4. Passive Income
5. Personal Budget
6. Secured Loans
7. Unsecured Loans
8. Personal Financial Statement

Once you become financially literate you will be able to build wealth with confidence.

Additional Information About Financial Literacy

Get your credit scores up to 650 or higher.

Manage your cash/money.

Increase your financial knowledge.

Create a plan for building wealth.