Create a budget: Track how much money you receive each month against how much you spend in an Excel sheet, on paper, or with a budgeting app.By being armed with the appropriate knowledge about finances, individuals can approach major life choices with greater confidence realizing that they are less likely to be surprised or negatively impacted by unforeseen outcomes. Financial literacy invokes confidence: Imagine making a life-changing decision without all the information you need to make the best decision.Though someone may not be able to afford a dream today, they can always make a plan to better increase their odds of making it happen.
Financial literacy can help individuals reach their goals: By better understanding how to budget and save money, individuals can create plans that set expectations, hold them accountable to their finances, and set a course for achieving seemingly unachievable goals.Though losing a job or having a major unexpected expense are always financially impactful, an individual can cushion the blow by implementing their financial literacy in advance by being ready for emergencies. Financial literacy prepares people for emergencies: Financial literacy topics such as saving or emergency preparedness get individuals ready for the uncertain.Financial literacy helps individuals avoid making mistakes with their personal finances. Seemingly innocent financial decisions may have long-term implications that cost individuals money or impact life plans.
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