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About two-thirds of American citizens cannot pass a simple test on financial literacy. That means most people do not know how to manage money, save it, invest or plan for retirement. Because of this, the need to improve financial literacy in the community is at an all-time high. So, how can this problem be addressed? Here are a few tips that can help.
It is unfortunate that children are not taught about finance. In fact, there are only a few schools that are keen on teaching personal finance before a student graduates. Basic personal financial skills allow one to live a secure, healthy, and happy life. As advised by most financial gurus like Kevin Cohee, understanding the basics of saving, budgeting, investing, and debt management can be the difference between poverty and prosperity. Once students leave the education system equipped with the right financial knowledge, they can make sound decisions that can reduce the poverty levels that people have been experiencing.
Only 1 in 10 Americans understand personal finance basics. Many factors, such as the lack of proper financial education, have contributed to this. However, today, there are many resources that can educate one about personal finance. Go online, and you will not lack resources that can help. If you have been unfortunate not to receive this information early, you have the chance to educate yourself on the basics of financial literacy and better yourself.
Teach a Financial Planning Workshop
If you are an influential member of the community, you can organize a financial literacy workshop in your area. Even if you are not, but are concerned about financial issues in the community, try and rally influential people in your community to help out. The workshop should be tailored according to the demographic in the community. If the area is highly dominated by young families, topics such as ‘saving or budgeting for college’ make sense. If the area has many older residents, then talking about retirement planning is more suitable.
Support a Financial Literacy Organization
A lot of people have very little understanding of how to manage money or credit cards. That is why you will find today there are many organizations organizing talks and workshops in schools or communities. If there is such an organization in your community, support it. Most of these organizations are non-profit, meaning they depend on donations to acquire the resources they need. If you are a financial advisor, you can dedicate your time and be one of the speakers to educate people on financial literacy.
Promote Financial Literacy on Your Blogs, Website, or Social Media
You can also promote financial literacy through your online connections. If you have a blog, even if it is not directly related to finance, find a way to talk about finances. At the end of the day, almost everything is about money and spending. Plus, there is no single person that does not deal with money daily.
Addressing financial literacy in the community will go a long way in improving community lives. When people are informed, they are in a better position to make solid financial choices.