Take Steps to Boost Financial Literacy

To achieve your financial goals, it’s tremendously helpful to know as much as you can about issues such as saving, spending, borrowing and investing. So, what can you do to increase your own financial literacy?

Of course, the answer to this question depends somewhat on your own knowledge and experience. But it’s worth noting that many people seem to have fallen behind in their financial know-how. In fact, only about half of U.S. adults say they are knowledgeable about personal finances, according to the Pew Research Center.

In any case, regardless of where you are in life, it’s never too late to boost your financial literacy. Here are a few suggestions:

• Read all about it. There’s certainly no shortage of written material — books, newspapers, magazines, blogs, websites — on all manner of financial issues. The more you read about these topics, the more you’ll understand them. However, you do have to be careful when doing your research, especially if you’re looking at blogs and financial websites, some of which may appear to be educational in nature but are actually trying to sell you something or give you a “hot tip” on stocks or other investments.
• Know yourself. Another part of financial literacy is self-knowledge. Are you naturally inclined to be a saver or a spender? Do you have a strong aversion to debt, or can you live with what is considered a reasonable amount? When you invest, are you willing to take on more risk for potentially higher returns, or do you prefer a more conservative approach? By knowing the answers to these and other key questions, you’ll be better prepared to make appropriate financial decisions.
• Get some help. If you work with a financial professional, you’ll gain access to all sorts of knowledge about investing, as well as guidance on creating strategies to help you achieve your short- and long-term goals. A qualified financial professional should take the time to learn your needs, family situation, investment preferences and feelings about risk — and along the way, you’ll learn more about the financial markets and how events such as interest rate changes and new tax laws can affect your choices.

While it’s great to improve your own financial literacy, you’ll also want to help your children, or possibly grandchildren, get a good start on their financial journeys.

The earlier kids start learning about money, the better equipped they’ll be to manage it when they get older. Any lessons you’ve learned — perhaps some the hard way — about saving and spending can be valuable to your young family members. And you can make their financial education fun, too — why not buy them shares of stock in a company with which they’re familiar and follow its progress? Fortunately, you might also get some help from your local schools, as more than two-thirds of all states now require personal finance classes for high school graduation, according to the Council for Economic Education.

Everyone benefits from financial literacy — so add to your own and promote it to your loved ones.

This article was written by Edward Jones for use by Joe Oliver, your local Edward Jones Financial Advisor.

Joe Oliver is a lifelong Oxfordian, husband, father, and financial advisor with Edward Joes Investments. Joe services business owners and individual investors by helping them accomplish their financial goals.  For a complimentary financial consultation, connect with Joe at Joe.Oliver@Edwardjones.com.

Joe Oliver, CFP®,AAMS™
Financial Advisor
2250 Baltimore Pike
Oxford, PA 19363
484-702-9311
www.edwardjones.com/joe-oliver

Edward Jones, Member SIPC.

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