Financial literacy has been a buzzword for quite some time for many, especially younger people, which resulted in more people being interested in learning more about it.
With the advent of technology, we now have the advantage of an abundance of information wherever we go. The only deciding factor is if we are willing to learn and dedicate time, particularly for those who would rather waste time scrolling on social media.
In this post, we will learn about financial literacy and some ways to improve it.
What is Financial Literacy?
Before we can proceed on how to improve our financial literacy or financial quotient, we must first know what it is because it is impossible to improve on something that we need help understanding.
Financial literacy is the ability to understand and properly apply financial skills like saving, budgeting, personal finance management, investing, and other related financial concepts.
Though there is a lot to learn about financial literacy, especially with the changing economic and technological landscape, it wouldn’t hurt to try and improve in whatever areas you can – and, if possible, as early as you can.
Here are some ways to improve your financial literacy and financial quotient for a better future for you and your family.
1. Read books.
There are a lot of books about financial literacy available in the market that you can choose from.
Though many books on the subject were written by foreign authors, like Rich Dad, Poor Dad by Robert Kiyosaki, I Will Teach You To Be Rich by Ramit Sethi, or The Total Money Makeover by Dave Ramsey, there are also books that Filipino authors write.
Try books with Filipino context like No Nonsense Personal Finance by Randell Tiongson, Till Debt Do Us Part by Chinkee Tan or Guide to Investing by Fitz Villafuerte.
2. Read blogs and websites.
Suppose you think that books are intimidating or boring. In that case, you might be interested in reading personal finance blogs available with a click of a mouse.
Aside from my own blog, Rat Race Running, you may also check Ready to be Rich, MoneySense, The Thrifty Pinay, and more.
It would be best if you also read about the latest financial sector trends. But before that, you must first have a firm grasp of the basics.
Please check out my posts about personal finance here.
3. Watch videos.
If you’re not yet into reading (hopefully you will because this is crucial), you may spend some time watching videos about personal finance on YouTube, Facebook, or Tiktok.
However, please be careful about what you watch because many content creators are hiding behind the disguise of “personal finance,” but in reality, they are hypers or, worse, scammers.
Some of the videos I regularly watched or watched when I was starting are On The Money (particularly the old episodes), Rampver Financial with Rex Mendoza, The Plain Bagel, and The Two Cents.
4. Listen to podcasts.
If you’re stuck in traffic, doing some chores, or exercising, listening to podcasts is a great alternative. Many personal finance content creators are also moving into the podcast scene to reach more people.
Some podcasts I listen to are The 80 Percent, Optimal Finance Daily, and Rampver Radio.
5. Attend seminars and webinars
Aside from books, websites, videos, and podcasts, attending various seminars and webinars is important – both free and paid – especially if you’re starting your financial literacy journey.
One way to find free seminars and webinars is through Facebook events or if your favorite social media personal finance personalities are hosting. However, it is also important to invest in your financial quotient by attending paid seminars and webinars.
The good thing about paid events is that they ‘force’ you to attend because you have already invested in them.
I once attended a paid seminar about the stock market that they said used to be free. However, people kept signing up but didn’t show up on the day. So to increase the accountability of the attendees, they placed a price tag that proved effective.
6. Join a community.
One of the best things about the Internet is how it brings people together, including those interested in learning more about personal finance.
You may search Facebook groups, personal finance subreddits, or other forums, especially those that cater to beginners. Again, please be selective about which groups you join because many groups lure beginners into investment scams.
One of the communities in that I am personally active and regularly interact is Financial Literacy PH on Facebook. Though there are times when the questions are repetitive, I still try to answer as much as possible because I know what it feels like to be lost in the plethora of information, especially where to begin.
7. Optimize your social media feed.
The social media algorithm is incredibly smart to the point that it is scary accurate of what we are interested in. So if you follow people who post about personal finance, investing, and money matters, your social media feed will start showing more and more content about them.
You may also unfollow most of the pages that are currently different from what you’re interested in. Again, be careful about who and what you follow, and avoid creating an echo chamber of things that only makes us feel good. We still need to be updated about current events.
For starters, here are some of the social media personalities I follow on various social media pages.
8. Find mentors
Lastly, we need mentors or people who are more knowledgeable and experienced in personal finance than us. This means we must avoid asking financially illiterate people for financial advice because it will be like asking someone who can’t write to teach us how to write. It just won’t work.
You may talk with professionals or attend their seminars. You may also follow people on social media and learn from them. The good thing about mentorship is it doesn’t always have to be one-on-one. You may look up many people for mentorship.
You may read this post to learn more about different types of mentors.
Financial literacy is not simply about earning money to spend. It also requires discipline (a lot of it), perseverance, time, effort, and other people. The things I listed work whether you’re a beginner or looking for more things to add to your arsenal.
Finally, if you reach a certain point where you are more knowledgeable, it would be helpful to share your knowledge with others and learn to . God bless your financial journey.
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