According to Investopedia, financial literacy is the ability to comprehend and use an array of financial skills. Some common financial skills you need include budgeting, investing, and personal financial management (overseeing your day-to-day spending).
Hearing the phrase “financial literacy” probably elicits memories of that boring finance class you took in high school or college. Fortunately, improving your financial knowledge does not have to be a sleep-inducing process. It can actually be fun and enjoyable.
Here are seven ways you can give your literacy a boost without boring yourself into a coma:
1. Use a Financial Empowerment Platform
Financial empowerment platforms have the potential to revolutionize how individuals learn financial skills and shape their spending behavior. Innovative solutions like Goalswell merge gamification and social goal setting to make learning financial skills fun.
By combining cognitive psychology research with games and social accountability tools, this solution can help you learn proven techniques and apply them to your individual financial goals.
2. Sign Up for Newsletters
Signing up for financial newsletters is a simple way to access a steady stream of financial knowledge. Be selective, though, as some platforms will bombard you with marketing emails and other ad content instead of the educational information you seek.
When signing up for newsletters, carefully customize your email preferences and make sure only the types of content you want to receive are selected. We recommend starting with just two or three subscriptions so you don’t get inundated with content.
3. Listen to Podcasts
Financial podcasts can provide you with loads of financial knowledge in a convenient, easy-to-digest format. You can listen to podcasts while commuting, hitting the gym, or tidying up your house. Some podcasts focus on investing, saving, getting rid of debt, or pretty much any other financial goal you can think up.
That said, finding the right podcast for your goals can be a bit tricky. There are dozens of finance podcasts out there. To help jumpstart your efforts, check out this top 10 list from the U.S. News and World Report.
4. Get More Productive on Social
Next time you start scrolling through Instagram or catching up with the latest trending videos on TikTok, take a few minutes to look at finance content. Surprisingly, these platforms can be a treasure trove of financial information.
You can also join financial groups on Facebook or other platforms, where you can chat with like-minded individuals who are passionate about getting their finances in order.
5. Read (or Listen to) Finance Books
Finance books remain one of the best sources of financial information. Reading them has plenty of advantages. First, you can research the author and vet their credentials to ensure they provide sound advice. Additionally, books often provide a comprehensive look into specific financial topics, like saving or budgeting.
The best part is you can digest this content in various formats. If you are an avid notetaker, consider a paperback book so that you can highlight key points and bookmark important pages. If you want a more convenient option, download the book to your favorite platform and soak up the knowledge while you perform other tasks.
6. Make a Budget
Making a budget is a great way of measuring your current financial literacy. If you can set a budget and stick to it, you are well on your way to achieving your goals.
You can make a budget using a notepad and paper, or if you want a more interactive option, consider downloading a budgeting app.
7. Take a Class
While you may not be keen on signing up for a class, you should certainly consider it. You can either enroll in a course at your local college or sign up for a private seminar.
Naturally, the academic course will require a longer-term commitment. But you can be confident the information provided is useful and relevant to your financial objectives. If you opt for a private course, do plenty of research to ensure you are getting your money’s worth.
Maximize Your Results with a Diversified Approach
If you speak to an investment professional, they will recommend that you diversify your portfolio. You should take this same approach when building your financial literacy.
Everyone learns differently, so we recommend trying a combination of the tips and tools above. While some may be able to breeze past their financial goals after reading a “how to” book, you may benefit more from listening to podcasts and tapping into recurring encouragement through an empowerment platform.
Whatever path you decide to take, be consistent and stay the course. Before you know it, you will be checking objectives off your list and sprinting toward financial stability.