Lifelong Financial Literacy

This month many people are working hard to implement their New Year's resolutions, and finances are a popular focus. But do you have the knowledge to turn your goals into reality? If you're trying to get in shape physically you need the proper equipment, gym membership, diet plan, etc. Similarly, you need the right tools and resources in order to effectively manage your finances. The most important: financial literacy. You may already be budgeting and have your bills all in check, but being financial literate is much broader than that. For instance, how much do you know about our economy? You know times are hard, but do you know exactly what's going on? Do you know how it affects you? Try out a few of these tips and whip yourself into financial shape.

Face Your Fear. Finances are a commonly disliked topic, but in order to increase your financial literacy, you must view your finances in a positive light, rather than as a nuisance. Think of it like going to the doctor. It may not be your favorite thing to do, but you know it's good for your health, and you may even learn something from it. Like the doctor helps you understand how manage your health to prevent disease, financial literacy helps you understand how to manage your finances to prevent debt.

Stay Informed. The financial world is constantly evolving; whether it's the passage of laws, the introduction of new products or services or national global events. Take a few minutes every day to scan the finance/business section of the news. This will help you gain a better understanding of how global and national financial developments may affect your personal finances.

Pace Yourself. You wouldn't enter a marathon during your first week of conditioning, so make sure to pace yourself when it comes to increasing your financial literacy. Learning takes time. Make a list of the financial topics that you would like to know more about and tackle them one at a time. As you learn more about each one you may come across more topics to add to your list.

Remember, learning something new doesn't happen overnight, it takes time and patience. But stick to it and before you know it, you'll have a new sense of understanding and confidence in your finances. Check out 360 Degrees of Financial Literacy for articles, tools and more.

Visit www.feedthepig.org for more money-saving tips.