Financial literacy plays an important role in the quality of your life. When you have a better understanding of financial literacy you have an easier time paying off your debts, planning for retirement and living a healthier life. According to annuity.org 25% of Americans say they don’t have anyone they can ask for trusted financial guidance and 75% of teens lack confidence in their knowledge of personal finance. At First Savings Bank, we are here to give our customers and non-customers the financial confidence needed to set themselves up for a path of financial stability.
Understanding the Fundamentals of Financial Literacy
Financial literacy is more than understanding numbers; it’s about comprehending fundamental financial concepts that empower you to make informed decisions. It’s the tool that enables you to manage your finances effectively, plan for the future and ensure financial stability. Studies have shown that financially literate individuals are more likely to save money, invest wisely and avoid excessive debt.
Develop Healthy Financial Habits
In order to become financially literate, you must develop healthy financial habits. Gaining strong financial habits include making smarter financial decisions and having discipline to keep yourself on track. There are good financial habits you can adopt to help yourself in the future. Some of those include:
- Setting savings and life goals
- Paying off credit cards in full and using credit cards responsibly
- Avoiding impulse buying
- Tracking monthly expenses
- Building towards a retirement plan
Striving to build healthy financial habits can pave the way for a bright future. However, the journey is not always easy when you are on a mission to be financially literate. Improving your financial literacy often takes time and is an ongoing process. If you are looking for ways to improve your financial literacy reach out to our dedicated team to find resources provided by First Savings Bank or look for financial seminars that will help you brush up on ways to budget and plan for retirement.
https://www.annuity.org/financial-literacy/financial-literacy-statistics
