Check Out These Easy Tips For Learning About Your Finances!

Tuesday, August 4th, 2020
woman smiling and looking at laptop computer

It is commonly known that learning about your finances can help you be more successful financially. Whether you are a college student just starting to save or you have been trying to work on your finances for years, it can help to have financial literacy. Here are some tips you can follow to help your strengthen your financial health./p>

What is financial literacy?

This is the ability to understand basic financial and business principles. Being financially literate means that you can manage your money. You don’t have to know how to invest thousands of dollars to do this successfully. Things like saving, budgeting, and small-scale investing can help more than you think. The principles are so easy that children and adults can understand them.

Budgeting

This is the first step in any financial plan. The basics of budgeting include knowing how much money you have coming in and how much you spend. There are many guides available to help you budget, as well as educational books and plans. Budgeting helps you control your money so you can do more than live paycheck to paycheck.

Saving money

In order to start saving money, you must know your budget. Once you know how much money you have and how much is left after necessities, you can create a savings plan. This involves choosing an amount to set back (in a savings account) every month. The savings funds can be used for future purchases or emergencies.

Investing

This step is something you shouldn’t do until you understand budgeting and saving. It is perhaps the most misunderstood principle of financial literacy. The truth is that investing can be the easiest one to understand and do. With some forms of investing, like retirement accounts and plans, you are simply putting money in to make more money later in life. Working with a financial institution can help you understand investing better.

Steps you can take to learn financial literacy

Now that you know the very basics of financial security, there are some things you can do to be more successful. Having a savings and checking account for your money is a good step. So is having a retirement plan. Here are some other tips to help you.

  1. Study finances: You don’t have to go to college for finances to do this. But, you can look at guides online and read trusted sources for information. You can also get education from your financial institution. Try learning about debt, investing, and planning for the long-term.
  2. Learn about credit cards: You will receive many offers for credit cards throughout your life. If you haven’t already gotten some, be prepared. These will come from many sources like major companies and stores. Keep in mind that credit cards are addicting. You must know the rates the cards offer, as well as all other details before choosing to sign up for one.
  3. Take a class: This isn’t required, but it can be helpful, especially if you are learning about more complicated financial principles. Check out your community college to see if they offer a class for finances.
  4. Talk to a professional: This can often be your best bet for learning about finances. Credit unions, banks, and other organizations offer education and advice on taking care of your finances.

Want to learn more about finances?

Borger Federal Credit Union offers a variety of Services to help you maintain your financial health. From loans to financial education to mobile banking, we are there for you! Give us a call at (806) 273-9506 to learn more. If you live, work, worship, or attend school within Hutchinson, Carson, or Gray counties, you can Become a Member!