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Why It's Important To Be Financially Literate

Educate yourself of some financial terms, and you'll be a cut above the rest.

Posted on: August 27, 2016

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The title of this post may make you feel like you’re back at university and your parents are lecturing you about handling your finances better. They might have given you some high and mighty finance book upon graduation and expected you to become a stock-broker upon first glance. We’re not here to convince you to become the next Barefoot Investor, but it is certainly important to rid your ignorance when it comes to common financial terms. Here are our arguments to endorse such an education:

You won't be taken for a ride

Ever been in the position where you weren’t knowledgeable on a subject and got taken for all you are worth? It’s typical of a car deal or bargaining scenario. If you educate yourself on basic financial terms, you’ll be able to at least understand the cards on the table and rid yourself of being “taken for a ride” so to speak. Read some financial term glossaries, listen to investment podcasts, and educate yourself on financial terms that you’d be sure to encounter when doing deals that exchange money. Don’t sell yourself short – you can do it!

No more lectures (hopefully)

Take the initiative to learn and you may reap the benefits. You’ll know what’s what when it comes to your finances and you’ll hopefully be able to avoid lectures from your parents or friends on your lack of savings skills. Typical of a 20-year-old who is just trying to work out the grooves of supporting themselves financially, you’ll be one step ahead of your friends (and one lecture down on them, too). You’ll be shocked to know that it isn’t that hard once you learn to understand articles that were once foreign to you. Say hello to the Australian Financial Review and the like.

Financial wealth may come

Surprisingly, or maybe not so much, education provides wealth. But even better still, you’ll gain the knowledge with regards to finance that may end up saving you money! You’ll know how to play your cards right and begin to fully grasp the concept of budgeting and savings. No matter how young or old you are, it’s always helpful to have a little extra cash in your back pocket for a rainy day.

The world will finally make sense

The world is ruled by wealth. If you join the club, you may just become privy to the way the world works. Although it operates in mysterious ways, money is power and knowing a little about such a topic is essential. Start a list of terms you’re a bit fuzzy on and drill into your brain what they mean and how they work. All the multitudes of international business taxes might be a little much to start on, but if you’re in the position of taking out finance, interest, arrears, and credit score could be a good place to start.

Take our word for it, you’ll enrich your life by taking an interest in your finances and maybe pocket a little bit of money along the way. Now it’s time to put those reading glasses on and get educated!

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