3 ways to improve financial literacy How can improve it ?


3 ways to improve financial literacy How can improve it ?


3 ways to improve financial literacy How can improve it ?
3 ways to improve financial literacy How can improve it ?



April is an attempt to increase financial understanding in the month of financial literacy, but Americans need some help to understand money better, but financial literacy month is not an answer.


According to the 2015 S & P Global Financial Literacy Study, America is ranked 14th in financial literacy; In the form of nearly half the population of the population, it is linked to the prosperity of the American economy internally in order to properly manage the financial world of illiterate Americans and their financial system properly.


Unfortunately, financial literacy month is a precedent - its blanket approach to finance is faulty by design and can not work.


Americans are not the most important now, it fits a size-but rather to give advice, to help in developing individual plans according to their specific needs, to answer the question, what's next Do
The general guidelines will not answer the most relevant financial questions for their life.


 If the advice is not personal, the situation and actionable, most Americans will not miss it. And many people in our country need a lot of help, according to a study by the Federal Reserve, 47 percent of Americans may not have to pay unpredictable $ 400 expenses.

 It is dangerous and underlines a major issue with financial literacy: Americans do not feel good about their needs and planning for them.


I had to face financial fireworks in the first 10 years after the college. Despite good job with MBA from Wharton and with ever-increasing responsibilities, I originally had Pay check with Pay check without any emergency fund to return me.


 I was involved in my work to think even further. But it may help to take action by making financial advice relevant and necessary for a particular life level and status of individuals.


In the recognition of financial literacy month, here are three ways which can make the lessons of financial literacy more effective.


1. Understand that everything changes

  • Changes in the economy can not work in others because of working in some economic situations. In the first few years of college, I made the mistake of investing my whole 401 (k) in my company's stock. After popping up Internet bubbles, I noticed that it has dropped more than 70%. I have learned about diversifying your investment - and that what you understand may not be a smart financial decision in just 10 years.                                                                                
  • Financial industry change Arrivals of defined contribution schemes such as 401 (k) and IRA, and the decline of defined-benefit pension created the need for greater financial literacy because a person's financial future is now completely in his hands. Robo-Advice and Personal New products, such as financial management apps, have made more devices, but this can lead to more confusion.                                                                                                                                     
  • Changes in Your Financial Status At the same time, your service may be your service, it is not necessary that you work later. Techniques that help you pay student loans, for example, when you become more prosperous, then you can not be the best way to manage your money. Even the type of mortgage that is most understandable, if you are planning to live somewhere else for a few years, then it can be different in comparison to when you get your AndroidHome.


2. Start learning financial literacy in college



Traditional knowledge on financial literacy teacher starts from high school age. It is a mistake. It is the best time to start learning deeply about college finance.


Financial education in high school is hardly applicable to real life of students and therefore, often falls on deaf ears, on the contrary, in college, students have to face real life situations and work through their solid financial Problems happen.

 This may be the first time that students use their own credit or debit card, or rent it, or become debtors.

Bets are high, this too: Student loans, if not done properly, can hold the borrowers for many years. At present, many students mistakenly believe that their college debt will be waived - according to a survey done by Landu, up to 50 percent .


It is the responsibility of the colleges that young adults start living their lives on their feet. Do not forget: Many employers check credit ratings when people apply for jobs.


3. Never stop learning



College may be the best time to develop financial literacy, but your education can not end there. At various points in your life, you may need to learn to reduce credit card debt, or to save for retirement or to refinance your home.


Americans should find a way to find the right answer, the right time, and these answers should be accurate, easy and easy to understand.


Financial Literacy Month can spread to the point where for consistent, reliable financial guidance, underscore how important it is. After all, real financial literacy is making sense with the land.

This article originally appeared on CNBC



thanks for the time .

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