Financial literacy is similar to having a map that has a destination marked but not knowing the correct path to take. This is a key mistake many make when embarking on a journey into becoming financially literate. Take this journey with us as we set the path to becoming more financially literate.
What is Financial Literacy Anyway?
Financial literacy isn’t just being able to save money. It’s having the knowledge of financial concepts to make smart financial decisions. There are 4 main stops we will be taking along our journey: budgeting, savings, credit and investing. These principles allow you to confidently navigate the financial world and make sound financial decisions.
Stop 1: Budget
A budget is a way for individuals to track their income and prepare for monthly expenses. Without a budget, individuals may not have enough funds to cover some of their monthly expenses. Budgeting helps keep track of monthly expenses and how much of your pay needs to be reserved to cover all your necessities. One of the most common ways to budget is the old-fashioned paper and pencil method or you can use online budgeting tools such as Personal Finance, which is conveniently located in our mobile and online banking app.
Stop 2: Saving
Having a savings account or a savings plan will help cover any unexpected costs or emergencies that can happen throughout the year. Learning how to save money is crucial as it helps build security and financial independence, all of which root back to having healthy financial habits. Opening a savings account can be easy as many institutions offer online account opening. Be sure to browse First Savings’ high-interest savings option, Impact Savings.
Stop 3: Credit
Building credit is a financial pillar that individuals need to work on in order to improve. Credit is like your financial reputation; if your credit is bad, then your repayment credibility may not be good, but the better the credit score the more credibility you have with lenders.
Stop 4: Investing
Investing is the final stop that we are making on our journey to become financially literate. Investing is important because it provides opportunities to build long-term wealth and outpace inflation. The earlier that you start investing, the more your money will grow, offering you financial security as you enter your golden years. First Savings offers IRA and CD accounts to help build your investment portfolio.
First Savings Bank is here to help you build a solid financial foundation. We are committed to building healthy habits throughout our communities and look forward to helping you grow yours through our tools and resources. Have you been looking for a bank that cares about your financial growth? Reach out to our team today to get in touch with one of our branch representatives. 1-833-372-4968
