Written by: M Katie Helle, CPA
You may be asking yourself, “What is financial literacy?” Simply put, financial literacy is the understanding of money. Financial literacy not only includes the management of money but also empowering yourself with the knowledge to support investment opportunities and create wealth. The more you understand money, the more confidence you will have to manage money.
With the new year upon us, some like to think, “new year, new me” when it comes to money – out with the old habits and in with the new! How you interpret the “new me” comes from within, but for most, when thinking of finances, there are four key factors to consider:
- Budget – start with the basics and create a budget. Budging allows you to stay on track and better manage your money. Use free budgeting tools online to keep your spending on track.
- Save – start with a small goal and work your way up to a loftier goal. Challenge yourself to save nearly $500 in 31 days.
- Educate – educate yourself on topics such as retirement saving opportunities and investing in the stock market. The internet is a powerful tool that offers free advice to educate yourself – use it to your benefit. Once you have armed yourself with the basic knowledge, you can take your knowledge a step further and connect with a Financial Advisor in your area. Financial advisors can provide more valuable information on investing, whether in the stock market or your retirement.
- Manage debt – debt is not necessarily a bad thing if managed appropriately. The key to debt management is to have a strong understanding of good and bad debt – making sure it will provide a real benefit to your life when you incur.
Financial literacy is somewhat similar to a marathon because it is not a race to the finish line – it takes time. Knowledge is power, and the more you learn about money, the better equipped you will be to make decisions that can have a lasting financial impact on you.
*************************************************************************************************************
Katie Helle has been in public accounting since 2009, with experience in individual and small business taxation, specializing in payroll and sales tax reporting and compliance and QuickBooks accounting software. She is an Arizona native and resides in Chandler, Arizona with her husband, young daughter, and two goldendoodles. Outside the office, she is actively involved with community outreach, enjoys fitness, and can be found with a power tool or two in her hand for her many crafts.