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How does one gain financial literacy skills?

This is part of our professionals series where we ask professionals what they think students should know

money financial-planning financial-literacy
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Ann’s Answer

I learned personal finance in high school, but I know a lot of schools don't offer this type of course anymore. However, I recommend taking educational courses from educators in the field and not following the advice of a number of influences on social media unless they have extensive experience providing financial advice.

If the student's college offers a course in personal finance I absolutely recommend taking it. If that isn't an option, I know that Indiana University offers a free online course on Edx.org.
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Carrie’s Answer

For personal finances, your best free resource is your bank. Most banks have free information on their websites. You can also schedule time with a banker to discuss your goals and what services they have that can help you.

For big business financial literacy, I would recommend signing up for the Wall Street Journal, listening to the earnings calls of companies you are interested in, and reading financial statements. You will probably be over your head in the beginning, but you will slowly learn the more you read.
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Chirayu’s Answer

Gaining financial literacy skills requires a combination of education, practice, and discipline. Here are some steps that can help you improve your financial literacy - Start by reading books, articles, and blogs on personal finance. Attend seminars, webinars, and workshops on money management. You can also take courses on finance and economics offered by educational institutions or online platforms. Track your income and expenses, and create a budget that reflects your priorities and financial goals. This will help you manage your money more effectively and avoid overspending. Learn how to manage and reduce your debt, such as credit card debt and student loans. Explore options for consolidating debt or negotiating with creditors. Learn about different investment options, such as stocks, bonds, mutual funds, and real estate. Understand the risks and rewards of each option, and choose investments that match your risk tolerance and financial goals. Start saving for retirement early and regularly. Learn about different retirement plans, such as 401(k)s and IRAs, and understand the tax implications of each plan. Consider purchasing insurance, such as health insurance, life insurance, and disability insurance, to protect yourself and your family from unexpected expenses and loss of income. Consult with financial advisors, accountants, and lawyers to help you make informed financial decisions.
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Aaron’s Answer

Truthfully you've gained a lot of the math you need probably by middle school and definitely in high school to handle almost all financial tasks for the rest of your life. There are great financial classes out there such as "Dave Ramsey university" and "H&R block tax certificate," that don't cost too much that will set you on a good path in life for the basics of handling your money for the rest of your life.

It's important to find a good accountability partner and I hate to say...that often is not our parents although they can explain basics of paying bills and sometimes where to file taxes. Some people have very knowledgeable parents but most really don't. If you're looking at your life right now and having serious doubts about how your parents manage money then look for people as you go through life that can become good accountability partners where you can talk about your goals and bounce ideas off of.

Be open to learning but always proceed with caution. You will find 90% of people around will say things like "Taxes are too complicated...just hire a professional" or on the other extreme, "I put all my savings into this investing account and made SOOO much money so you should do it and here's my referral link." One person has given up on their own budget and they spread information that if they can't understand taxes then no one can and the other person probably didn't make "soo much money" and they just want you to get them points for whatever they're trying to get you signed up for. As you take short online courses (like the one's I mentioned) you will become better at sifting out "good" advice and "bad" advice.

Aaron recommends the following next steps:

Start taking cheap online courses now. Dave Ramsey for example offers courses to high school students.
Start a budget. You will learn more by hands on budgeting with whatever you earn from part time jobs than from reading.
Evaluate your budget after consistent budgeting. Find what are consistent costs. Find where you waste money.
Read reputable blogs and listen to free podcasts (nerdwallet, Charles Schwab financial decoder, etc)
Learn technical skills so you can improve your work with excel spreadsheets or other apps.
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Tammy’s Answer

Your local public library will have many books on financial literacy that cater to all age groups and levels of previous knowledge.

Do you keep track of your own money? This can be as simple as writing down money when you receive it and money when you spend it. That is the simplest thing to get you going along the financial literacy path.

Also, talk to your parents and anyone else you can about how they handle their money. Do they have rules of thumbs? Like "always saving a percentage of every dollar earned" or never buying something until I go home and think about it".

The more that you interact with money the better your financial literacy will be!
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Andrew’s Answer

Great question! I like how you asked this question, too. It wasn't about being a millionaire or getting rich quickly. Financial literacy is so important, and many great FREE resources are out there. I'll give you a few that have served us very well. At the top of the list is a resource that is part of the FIRE movement - Financially Independent Retire Early. ChooseFI is a podcast with infinite resources on investing, budgeting, lifestyle, credit cards, insurance, etc... Another is Mr. Money Mustache.

Enjoy your journey to financial literacy and, above all, the most important thing anyone could ever tell you: START EARLY! Which means TODAY! Like your body, like a plant (you get the point), your money takes time to grow. Start putting it away/investing now, and it will grow to provide for you when you need it.

Andrew recommends the following next steps:

https://www.choosefi.com/read/blog/?_tag=second-generation-of-fi
https://www.mrmoneymustache.com
https://www.choosefi.com/podcast-essential-listening-guide/
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