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A Quick Guide on Financial Literacy for Students
Financial literacy is something not many of us are aware of, but it is one of the most important factors for success. For the majority of young students, they are taught to study hard and get good marks for them to be hired in a respectable company and gain financial stability. However, this mentality is flawed and outdated. Yes, this may have been effective back in the days when tax laws and everything else was simpler, but due to the constant evolution of the complexity of laws and the financial system, this may no longer be as true as it was before.
What they teach you
Children are often taught at an early age that there is only one way to success and it is a fool-proof path. They are taught to be hardworking and diligent in their studies so that they can make it to the top of the corporal chain. They are taught basic skills like how to count money, Mathematics, percentages, and other theoretical applications of Math, and that is all there is to it. You will never be introduced to taxes, inflations rates, and loan procedures unless you take it as a course in college.
This turning a blind eye to the important aspects of money making is what essentially leaves majority of the young people in the dark. Unless they spark a light of their own through experience or from someone teaching them, they will continue to wander in the darkness without any knowledge of how the world of finances operate.
What they don’t teach you
Teachers and schools often do not teach you that there is more than one path that leads to success due to the fact that telling children that studying for good marks is not that important can lead to children being less interested in classes.
Have you ever heard of those college drop-outs who rose to the top and became successful even without a job? This did not occur due to some stroke of luck, this occurred because they were fully aware of the ins and outs of the business world and are financially literate. Even successful businessmen groom their children to be financially literate at a very young age so that they will have no problems inheriting the business their parents worked so hard to establish.
Importance of financial literacy
Financial literacy is not just important for if you want to run a business, but can also be useful for everyday tasks as well. Financial literacy can help you calculate your taxes and be aware of the dangers of avoiding paying them as well as where your taxes go and the benefits it will give you and your family. You will also know how to properly apply for a loan and the rate of interests which are legally acceptable for you to avoid being caught in the jaws of a loan shark.
You will also gain proper knowledge about investing in a company’s stock to make your money grow much faster than if you were to leave them in a bank. You also become aware of the yearly inflation rates and what it will mean to you as a consumer. Not to mention you can even use your ability as a financially literate individual to shop for groceries smartly and effectively.
7 ways you can be financially literate
Since most schools do not teach you about financial literacy, it is about time you put an effort and learn financial literacy yourself. The little time you spend studying to become financial literacy will save you a lot more time in the future when you get entangled in the mess you made because you are not financially literate. Listed below are 7 ways you can do to be financially literate:
1. Read about it
The first thing you can do is to read about finances for you to gain a fundamental understanding of how money works and how it makes the world revolve. By learning the fundamentals of finances, you will have no difficulties learning more advanced topics and techniques about how to make money or how to manage money. Read as much as you can about finances to expand your knowledge and become much more aware of the world of finances.
If you do not have any books around you which tackle about finances, then you can look into your local library or even any online site which can teach you about the basics of finances. Once you have gained a fundamental understanding of finances, you will have no trouble following it up with learning advanced topics such as loans, investments, and, the stock market.
2. Look up magazines or online sites
If you want real life examples to follow for your financial literacy journey, then you can try to read magazines which focus about finances and money. They often have articles about successful people sharing tips on how to manage money better or just how to be financially literate. Magazines also tend to have a FAQ section in them where they answer inquiries from people who have just started out being financially literate just like yourself.
Due to the spread of technology, you can also look up online sites about financial literacy for you to learn more about the topic. As the internet can be really easy to navigate, you will have no problem looking for a reliable site which can give you more knowledge on how to be financially literate. There are even online sites of those magazines which focus on finances as well and you can easily access them with a few clicks.
3. Sharpen your math skills
One of the few skills they teach you at school which can be used to your advantage when trying to be financially literate is mathematics. Sharpen you math skills as much as you can because you will be dealing with a lot of numbers when trying to study financial literacy. Yes, you can carry a calculator with you to avoid having to solve for percentages yourself, but what are the chances that you will have a calculator with you at all times.
If you are having struggle with mathematics or lack confidence in your math skills, then you can always make up for it by studying more. And if you cannot do it on your own, then why not hire a tutor to help you with your Math troubles? FamilyTutor is Singapore’s number one home tuition agency with thousands of highly skilled and professional tutors. We are a home and online tutoring agency who are capable of teaching pre-schoolers up to university level students to make sure that everyone in the education system is covered.
4. Read local laws
Laws differ from country to country, and with this in mind you need to be familiar with the laws of your country related to finances. There are certain laws which you need to become familiar with like how much tax should you pay yearly based on your annual revenue, or what papers are needed for you to apply for a loan and how much interest should a bank charge you.
It is always a good idea to have the law on your side, especially when dealing with finances. So read up on your local laws to help make you aware of what is legally acceptable and what is not. The more knowledge you gain, the more you will be financially literate.
5. Break away from the consumer mentality
As consumers, we are constantly bombarded with advertisements and promos aimed to invoke our consumer mentality. This is a common practice by those business savvy individuals to lure in more customers and profits. You need to be aware of these tricks in order for you to break away from the consumer mentality which you were programmed to have.
Avoid buying appliances you don’t need just because they are on sale or opt to buy that less expensive shampoo that has the same components as the one shampoo that gets advertised in television. You need to be smart about you small spending just as much as you need to be smart on your bigger expenses. This can help train you to be less gullible and more financially literate.
6. Practice makes progress
As soon as you have learned from the previous five tips in this list, you and then move on to practice and apply what you have learned in real life. Budget your allowance so that you will still have extra by the end of the week, or avoid buying mainstream and expensive products and choose lesser known but still effective ones.
Every little effort you put into practicing being financially literate will reward you with bigger achievements later on. So try to practice it in the real world as much as you can to ingrain what you have learned in your head and hopefully make it into your mind set as well.
7. Take a financial literacy course
If self-studying isn’t enough for you and you want to learn from real experts, then you can take financial literacy courses. These courses are often offered in college as part of the curriculum for business related courses, but that doesn’t mean you can’t take them even if you are studying other fields.
Due to advancements in technology, you can take a quick 4-hour crash course of financial literacy in an online classroom and get the knowledge you yearn for. You can save the effort and money of going to a university just to be taught the same exact thing.
Conclusion
Financial literacy is quite an important tool you must have if you want to be successful in life yet it is something the educational curriculum leaves out. So, it is up to your hands to study and learn about it to secure your future prospects do not fail and crumble on you. So take the first step needed to climb the ladder of financial literacy and achieve success once you reach the top.
Carelle
Carelle is a teacher who has been through the ups and downs of the teacher and learner life. She wishes for every learner to gain educational satisfaction that will help embody the people they want to be in the future.
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