Prepare for a brighter future by learning better financial skills today.
Financial literacy simply means having a good understanding of how money works – and what the consequences of your decisions are. This covers everything, from debts and investments to managing your income and budgeting. If you’re not particularly confident in your financial literacy then you’re not alone, as many people feel the same. However, there are some easy ways that you can improve this while you’re still a student.Here are some expert tips from the guys at the Solution Loans Personal Finance Blog:
Identify your key topics
It’s often a good idea to begin with one financial topic at a time. So, for example, you might want to understand the financial costs of buying a property or what kind of debt repayment is the most effective for student loans. Alternatively, you can begin by identifying those areas of money management where you feel like you’re currently falling behind on understanding (read more about that here), whether that’s investing for retirement or learning how to budget. Make a list of the financial topics you need to work on and then research one after the other.
Use all the resources available
There are many government resources that are designed to help everyone improve financial literacy and most of these can be found via search engines online. You may also have courses, books or online content available at your university or school that is designed to help students to improve financial literacy. Debt and money charities will also be able to offer advice and reading on a whole range of financial topics, from mortgages to Wills.
Read the papers
Personal finances are tied to the wider economy and so true financial literacy requires an understanding of what’s going on in a broader context. Pick an informative newspaper and then read it regularly, working your way through the general news sections, as well as the parts of the paper that cover money and finances. You’ll be up to date with the latest developments in personal finances and could also learn about topics that are new to you, such as how to manage a personal pension.
Look for financial tools to help you
Online courses and tools to help with skills such as budgeting are widely available – and often for free. You can also invest in a money management app, which will teach you better habits for looking after your money while helping you to make tangible savings at the same time. If you know that you’re just not going to get to a place of better financial literacy on your own then there are many different tools out there that can help you.
Practice financial literacy every day
- Start budgeting for every spend
- Keep track of all your purchases
- Set financial goals and start working towards them
- Get a job and learn how to manage the income
- Work out how you’re going to save for the future
- Get to grips with credit card charges and the best way to manage a card to avoid high fees
- Learn how to live within your means, no matter how small