Finances FYI Presented by JPMorgan Chase
As the saying goes, money makes the world go round. We need it for basic needs such as housing, food, clothing, and healthcare. It also allows us to enjoy life through hobbies, travel, and social activities with others.
Saving for large purchases such as a car, house, or retirement takes planning. To build wealth and prepare for retirement, we need to understand how investing works so we can do it effectively and not be taken advantage of.
Yet, most of us don’t learn in school how to manage our money effectively. Our parents may have avoided the subject or unintentionally taught us their poor spending and saving habits. That means we are responsible for educating ourselves. Fortunately, it is never too late for financial literacy.
What Is the Value of Ongoing Financial Education?
Financial education teaches you the information and skills needed to manage your money effectively. These skills include budgeting, saving, investing, debt management, and financial planning. Ongoing education is valuable so you can adapt to changes in the financial world and your evolving personal situation. With new products and technology, continued learning allows you to stay informed about emerging investment opportunities, changes in tax laws, and advancing tools for money management, such as budgeting.
Think of it like learning to ride a bike. First, you need to master the basics, like finding balance. Your financial journey starts with understanding fundamental concepts such as budgeting and saving. Like pedaling keeps the bike going, staying engaged with your finances helps you reach your goals. Everyone falls sometimes, whether off a bike or by making financial mistakes. It is important to get back up quickly and use it as a learning experience to avoid in the future.
Eventually, you are ready for longer bike rides to explore new places and utilize your skills. Similarly, as your financial literacy grows, you can gradually navigate more complex financial decisions like buying a home or starting a business. Just like riding a bike can be exhilarating and fun, financial well-being brings freedom, security, and the ability to enjoy the ride.
Is it Too Late to Learn?
If you missed receiving financial education early on, you may think it is too late to learn. Fortunately, there is always time to start. When you understand financial concepts, it empowers you to make informed decisions at any age. If you have been making decisions without understanding the consequences or are new to being responsible for your personal or family’s finances, now is a great time to take the first step and commit to improving your financial literacy.
Each age has a different focus, making continued financial education essential. Young adults can learn basic budgeting and start investing early for maximum results. Those in their mid-career should increasingly focus on saving for retirement. Older adults may need to accelerate retirement planning and can learn about estate planning and the best ways to pass wealth on to the next generations.
Resources for Financial Literacy
Looking to boost your financial knowledge? Here are some reliable resources to get you started.
Financial Websites
Books
- Why Didn’t They Teach Me This in School? by Cary Siegel: A comprehensive guide to personal finance, covering everything from budgeting and saving to investing and retirement planning.
- The Simple Path to Wealth by JL Collins teaches investment strategies using simplistic and easy-to-understand concepts.
- Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age by David Bach outlines a catch-up plan for people who feel behind in achieving their financial goals.
Podcasts
- Stacking Benjamins provides approachable financial information with the goal of making money fun.
- In each Money for Couples episode, host Ramit Sethi interviews real couples for insights into money mindsets and how to work towards a shared financial future.
- So Money with a financial correspondent, Farnoosh Torabi, provides listeners with candid conversations about money strategies with the world’s top business minds.
Classes and Courses
Look on your local community college and university or library’s websites for in-person or online personal finances classes. Edx offers online personal finance courses from prestigious universities. You can also find classes on learning platforms such as Udemy or Coursera.
No matter what age you are or what method you choose to learn with, today is a perfect day to improve your financial literacy. Financial well-being is within reach if you take control of your money and equip yourself with the knowledge necessary to make wise decisions.
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.
Source: Seattle Medium
