Financial literacy is important for all of us, not just something we need to teach our kids. We can’t all be experts on everything financial, but we can make sure we have a general knowledge base on anything financial that affects us now or in our future.
Here are some categories where we can all make an effort to increase our financial literacy:
Retirement-Roth IRA, Traditional IRA, SEP IRA, 401k, 403b
Insurance- Health insurance, life insurance, property Insurance, auto insurance, disability insurance, long-term care insurance
Investments-Personal savings accounts, CD’s (certificate of deposit), stocks, bonds, mutual funds, collectibles, real estate
Budgeting-Make a budget and don’t spend more than you earn. There are several ways to break down where the money goes. One popular budget is the 60/10/10/10/10 budget. Household (food, bills, taxes)-60%, 10% retirement savings, 10% long-term savings (home etc.), 10% short-term savings (repairs, etc.), 10% fun money.
All of this and more can be learned by reading personal finance articles, blogs, and books. There are personal finance classes available in many areas as well. Another great resource are financially based radio shows that are also often available through podcasts. The resources are out there for all of us to take action and improve our financial literacy.
*Information contributed by Genworth Financial. All opinions are 100% my own.