October is National Learning and Development Month. It’s important in both your professional and personal lives to keep learning, broadening, and advancing your skills. Whether we take a management class at night or learn another language, both keep our minds sharp, improves our confidence, and has the added benefit of looking good on our résumés.
On the other hand, ignorance can be costly, especially when it comes to your financial literacy. Investing time and energy into financial education is the best investment you can make.
According to a study published by FINRA, Millennials exhibit very low levels of financial literacy—only 24% can answer four or five questions correctly on a five-question financial literacy quiz. That’s a scary thought.
Miriam Webster defines IQ as “proficiency in or knowledge of a specified subject.” Your financial IQ depends on your ability to understand the various terms and concepts which make up the subject of finances.
Another study by The National Endowment for Financial Education found that the amount and timing of financial education matters. When it comes to building financial literacy to shape behavior, education that closely precedes a financial decision has more impact.
The truth is, financial literacy is an essential skill you must develop if your goal is to try to build wealth and enjoy financial security.
Financial literacy provides a long list of advantages. Peace of mind alone should be enough of an inspiration. Despite an improving economy, nearly 90% of Americans surveyed by the American Psychological Association report feeling stress about money.
Nelson Mandela may have said it best. “Education is the most powerful weapon which you can use to change the world.” Similarly with your own financial education, it is your most powerful weapon for the growth of your wealth and financial well-being.
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