Are you tired of feeling lost when managing your money?

Do financial terms sound like a foreign language to you? 

Honestly, we’ve all been there, and even the experts you see today were just learners at some point.

Saving for short term goals or a vacation, is pretty straight forward.

Shorter term goals require less diligence and consistency.

Unlike planning for a short vacation, planning for big goals like buying property and retirement require you to empower yourself improve your financial literacy.

In this conversation, I’ll share practical and straightforward ways to improve your financial literacy.

This will empower you to make informed decisions and take control of your financial future in the long run.

Sit tight!

What is financial literacy?

Financial literacy is your ability to understand and use financial terms, topics, and concepts and to use this understanding to make informed financial decisions for yourself and even for others.

Importance of financial literacy

Why should you invest time, effort, and money to improve your financial literacy? 

I’m sure you want to know, so here are some benefits of improving your financial literacy:

Allows you to take advantage of opportunities

Financial literacy allows you to recognize and take advantage of good financial opportunities. You won’t be able to identify or distinguish some opportunities unless you are knowledgeable enough.

Helps you learn how to manage your money properly

Financial literacy is essential if you want to manage your money effectively. Money management is not a trial-by-error action, as this can cost you all your life’s earnings.

You will need to improve your financial literacy to manage your money properly.

Helps you learn the best ways to invest for your future

Getting the proper financial knowledge by increasing your financial literacy will teach you the right investment option based on your earnings, needs, and location.

There are different investment options today; you can invest what you earn in several ways—from mutual funds to EFTs and cryptocurrency.

Better money decisions

With the proper financial literacy, you can recognize the risks, benefits, and turnover time for each investment option available and align them with your goals before deciding.

Improve your financial literacy - With the proper financial literacy, you can recognize the risks, benefits, and turnover time for each investment option available and align them with your goals before deciding.
Improve your financial literacy – With the proper financial literacy, you can recognize the risks, benefits, and turnover time for each investment option available and align them with your goals before deciding.

You can recognize scam opportunities to a large extent, and all these will help you make better financial decisions.

Avoid debt

Good financial decisions will help you avoid getting into debt.

With adequate financial literacy, you will manage your money, make good investment decisions, and secure your financial future.

Ways to improve your financial literacy

1. Read good financial books

According to Investopedia, books and magazines will always be an excellent way to explore financial topics, especially if you are a beginner. Reading financial books will help you pace yourself.

If you want to get started with financial books, choose books based on your interests (investing, saving, e.t.c.) and read them at home.

You can get good financial books from your local library, Amazon, or other online bookstores. 

If you are still determining what books to start with, you can get recommendations from finance communities on Quora.

Here are some excellent financial books I know and can recommend:

  • Your Money or Your Life by Vicki Robin and Joseph Dominguez
  • Personal Finance for Dummies by Eric Tyson 
  • Think and Grow Rich by Napoleon Hill
  • Rich Dad, Poor Dad by Robert Kiyosaki
  • The Millionaire Next Door by Thomas J. Stanley
  • The Richest Man in Babylon by George Samuel Clason
  • Secrets of the Millionaire Mind by Harv T. Eker
  • The Total Money Makeover by Dave Ramsey

2. Subscribe to a Newsletter

A newsletter is another word for online publications sent as emails to subscribers that contain information about a business or other related topics in their niche. 

I’m sure you have many newsletters you are already subscribed to, and it’s time to add a few financial newsletters to your list.

When you subscribe to financial newsletters from trusted sources, you will constantly be exposed to financial news, ultimately upgrading your financial knowledge and being privy to personal finance trends and news affecting the financial world.

There are several financial institutions and websites with free newsletters you can subscribe to. 

Here are some top financial newsletters just for you:

Improve your financial literacy - Financial literacy is the key to unlocking a brighter financial future

3. Tune in to Finance Podcasts

Podcasts have grown in popularity over the years.

It doesn’t matter if you are in the bath, in your car, or jogging; you can easily connect to the podcasts you follow and absorb the information.

If you want to improve your financial literacy, I would advise you to seek out podcasts from finance experts, listen to them when you can give them your full attention, and highlight important points so you don’t forget them.

There are several finance podcasts from experts you can always tune in to and increase your financial knowledge.

Here are a few:

4. Join Finance Communities

Finance communities are also an excellent way to improve your financial literacy. 

It doesn’t matter if you choose books or podcasts; you also need to be in a finance community.

Community is a good choice if you are considering growth because you learn from other people’s experiences, ask questions any time you have them, get answers, and network with others.

With podcasts, books, and newsletters, you will likely not get access to interact with the authors and experts. However, this is what you get in a community, so I always advise joining a finance community as one of the most critical steps to improve your financial literacy.

You might even get investment opportunities from people in your community.

5. Talk to Finance Professionals

You might get access to a finance professional from your finance community. However, if you are looking for a more personalized approach where you can run at your own pace, you should search for other finance professionals who are open to mentorship, private coaching, or VIP classes.

When you talk to finance experts, you will get more personal finance tips tailored to your financial goals.

Signing up for their services might buy access to them for a long time—possibly for life (except for subscription-based mentorship, where you must constantly renew).

6. Attend Finance Events

If you pay attention enough and follow finance experts in your locality, you will come across local and international events tailored toward increasing the financial literacy of locals.

Some financial firms also host presentations by finance professionals and provide opportunities for people to improve their financial literacy.

You can attend these events in person if they are within your locality or virtually if they are not.

Finance events are a great way to improve your financial literacy because, more often than not, they allow attendees to ask questions and receive answers in real time.

You can ask questions about specific financial scenarios and get personalized answers right there!

7. Take Free Online Courses

Online finance courses are a direct and intentional way to improve your financial literacy. Several online learning platforms, like Coursera and Udemy, allow you to learn from experts without stepping foot in a classroom. 

These courses also allow for flexibility and might give you certification after taking and passing your assessment.

Some finance blogs also organize free webinars for you to attend.

8. Update Your Social Media Following

The best way to learn about something is to intentionally surround yourself with things or people that are related to it. 

If you want to improve your financial literacy, updating your social media following is another good way to be intentional about it. Be intentional about the people you follow.

If Instagram is your most active social media platform, search for finance experts and follow them. Follow finance experts (not just one), and your feed will change whenever you log on to Instagram. 

In doing this, you will have positioned yourself to receive information at random because social media platforms work with your preferences, which include the type of people you follow, the posts you engage with, and the things you search for. 

You can find valuable financial information on your feed, Explore page, and the ads you will see. 

9. Use Demo Investment Accounts

When you sign up for some investment platforms/apps, demo investment accounts are available. These accounts allow you to check out the platform’s features and make investment choices without real threats to your money.

Most demo accounts offer you the same experience you will have when using the platform live, although some might provide a false one, so you must be careful about the type of investment platform or app you sign up for.

With a demo account, you can use virtual money to buy stocks, EFTs, or mutual funds and use the real-time market to see how the money appreciates. They are helpful for people who are new to investing and want to know how the market works without losing money.

However, you need to know that no matter how knowledgeable you are about investing, there is still no investment option free of risks.


The Round Up

Financial literacy is the key to unlocking a brighter financial future, and to improve your financial literacy, you need to read books, join a community, and be intentional about what you surround yourself with.

While you grow, celebrate every milestone, no matter how small you think it is—whether it is understanding a new concept or making a wise financial decision. 

Keep exploring, keep learning, and watch your confidence in managing your money grow with each achievement and knowledge.

If you’re hungry for more financial knowledge, check out my other blog posts on money matters.

What’s your top financial literacy goal for 2024, and which strategy resonates with you the most? Share your thoughts in the comments below and let’s kickstart a conversation on our financial journeys!

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