What is financial literacy?
Are you financially literate?

Financial literacy is a broad topic. It stretches from balancing a checkbook, to things like understanding your 401k and beyond.

Many people underestimate its importance and what it can do for them and their family. Becoming financially literate can help you own your own home, save money for your children's education, and retire comfortably.

A definition of financial literacy is the ability to read, analyze, understand, and communicate financial conditions. WHAT? Basically, it's knowing enough about managing money so that you can make wise decisions.

When you are financially literate, you are able to plan for your future, make intelligent financial choices, and also respond to financial issues in a competent manner. You must have the know how to make your money work for you, instead of you working for your money.

The fact is that most people are not financially literate. Schools are not teaching financial literacy education. So, who are you supposed to learn it from?

Well, the education is left to parents and families to "hand down" to their children. This is a vicious cycle because those who are financially uneducated are passing down the same uneducated ideas. It's the blind leading the blind.

Many issues have arisen due to the lack of this financial education in the United States. More and more Americans have increasing credit card debt because their home equity has run dry.

It is apparent that we are becoming a county living on borrowed money.

Since people do not know how to save for retirement, many Americans are retiring at an older age. Some cannot even afford to retire. Don't you want to retire as early as possible? Do you want to work when you are 70? 80? Of course you don't!

Also, parents are not able to save money to send their children to college. What does that mean? Well, either children are not going to college to further their education or they are paying their way through college with loans and part time jobs.

The cost of furthering your education keeps inflating over the years. These young adults who have to foot the bill for their own education are getting out of school only to find that there aren't any good paying jobs. And to make matters worse, they have high student loan debt.

This certainly is not starting off on the right financial foot.

The U.S. Treasury has a website (www.mymoney.gov) that you may find helpful to begin your quest. You can use that as one of many references for your financial literacy education.

You need to wake up and take your financial literacy seriously. It is your own responsibility. No one is going to do it for you.

You know the U.S. economy is in a down turn right now. It's only going to get worse. Those who were struggling will struggle even more. And those who were comfortable will struggle as well.

Listen, this is a lesson you should take seriously. Prepare yourself for today and for your future.

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