The importance of financial literacy for everyone

Is there a day that passes by you that you don't have to talk about money or money-related stuff? I doubt this irrespective of age, job, gender, class, etc. Money talks must always come into your discussion, either making a purchase, managing your home as a wife, or planning towards a goal through saving, we can't just do without discussing money. The more reason why we all need to be properly educated about money is to enable us to make wise decisions in our day-to-day dealings that involve money. Do you know that learning never stops when it involves money, because, Look around you today, the way we do things, and make transactions is different from decades ago, cryptocurrency for instance, was not available in the '90s and early 2000s, we all just learned and are still learning about it in recent times, also in my country, most people are used to the traditional way of transaction, exchanging cash, but when we faced shortage of cash early this year, everyone both young and old had to learn how to use bank applications or debit card to make their transactions.

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There are so many benefits of being a financial literate, and I will be listing a few, but first, what is FINANCIAL LITERACY?

Financial literacy is having a better understanding of some financial components and how to put them into action to help us get better, They include; budgeting, saving, investing, borrowing, emergency funds, taxation, and personal financial management, etc, when we lack these basic financial knowledge, it means we are financially illiterate

BENEFITS OF FINANCIAL LITERACY

• It helps us make better financial decisions

Have you ever been in a position where you are not sure about what to invest in, but reading up or doing research, let's take hive engine tokens for instance, before investing in one, you've got to do some research on its benefits of holding it, and if it is favorable to you, you invest. But just jumping on anyone could lead to a loss.

• Managing money to stay debt-free

The reason some people are always in debt is not because they are not earning enough to sustain them, but because they lack the ability to manage their income, Through some basic financial knowledge such as savings, and budgeting, being equipped with this knowledge can help them stay debt-free.

• You are better prepared for emergencies

Emergencies can creep up on us at the least expected time, and this is where emergency funds come in, knowing about how, when, and what percentage to save makes us better prepared when faced with emergencies, which therefore reduces financial stress and anxiety.

• Boost your confidence

How do you feel when you are doing exceedingly well with your finances, I bet you your confidence and motivation get boosted, the more reason we need to be equipped with the right knowledge to stay afloat in our day-to-day financial dealings.

The best way to get better equipped with this knowledge is by reading up, learning about people's experiences, putting them into practice, and learning from your mistakes as well because we can't be perfect at all times. The Leofinance community is a wonderful platform where you can get started on your journey to financial literacy, learning from the real-life situations of other authors.

I hope you find this post enlightening, thank you very much for reading.