Understanding your money habits, following a budget and actively working to improve your credit score, all fall under the financial literacy umbrella. Starting out at your first job? Curious about how to secure startup investment capital? Saving up for an emergency fund? Everyone’s circumstances vary and we are all in different stages of our financial journeys; education however, is the common thread.
Financial literacy can be gained by learning how to navigate the areas that weren’t taught during school. It’s no surprise that only about 50% of Americans knew the answer to this question: Say you need to borrow $100. Which is the lower amount to pay back: $105 or $100 plus 3%?
We’re all in different stages of our financial literacy journey, but it’s valuable to continue to persist. Knowledge eliminates blind spots, resulting in more control over these areas of your life:
Where you live
Many rental agencies and landlords will only consider applicants with a good credit score. Finding a suitable place to live is one of Dante’s circles of hell, so being armed with a decent credit score opens more doors (ha!) for you.
Another advantage of financial literacy is having access to all financing options available when it’s time to buy or lease a car. Being in good financial standing makes sitting in the driver’s seat much simpler, because it decreases the risk level in the eyes of the car dealer or financier.
Post secondary options
Student loan debt in America reached a crisis point years ago, however, taking full advantage of your options isn’t always straightforward. A solid credit and financial history helps with having more loan options and greater flexibility.
Our life paths and circumstances certainly vary, but should be guided using as much education as possible.