To be financially literate is to understand the language of money to the extent that you are able to make sound money decisions and effectively use financial products for your benefit. This understanding does not come naturally. It is learned through education and experience. The challenge is many people fail to learn financial literacy because in most cases it is not explicitly taught at home or in schools, and many lose confidence in their ability to learn over time.

1. Not taught at home. 

The home is our first classroom. It is the environment where we learn how to navigate the world based on how the members of the household make us feel, what they do, and what they say. Unfortunately, many of our parents and guardians did not receive training in how to manage personal finances and may have received poor advice on the subject themselves, if any at all. Due to a lack of knowledge and cultural beliefs that money is a taboo topic to discuss in detail, money management is not something that is typically taught at home. Instead, and unwittingly, the unawareness, anxiety and/or secrecy around the topic is what is passed on. It is important for parents and guardians to first become financially literate themselves, and then to model and explicitly teach money management in the home. 

2. Not taught in school.

Much of what we do not learn at home, we learn formally in a school environment. Some people do learn the foundations of financial literacy in school through optional electives. However, this subject is often not mandatory, and many students miss out on the opportunity for an introduction to finance in school. Fortunately, today the opportunity to become financially literate and learn how to improve financially is available for anyone with access to the internet or a library. There are a wide variety of free platforms and courses that teach financial literacy online. They include YouTube channels, Drewber Solutions’ Debt-Free Community and free courses by Clever Girl Finance (clevergirlfinance.com). Learning financial literacy may be the difference between living an ordinary life and living an extraordinary life.

3. Lack of confidence.

Another reason many people fail to learn financial literacy is because they lack confidence in their ability to learn it. Some people believe this subject is beyond their scope and limited to people who work in the financial sector. This is a myth. Financial literacy is available to anyone willing to learn it and anyone can learn. As a matter of fact, everyone should learn to be financially literate because money affects everyone regardless of age and chosen career path. 

Money underscores most areas of our lives. This is why it is important to understand how money works by becoming financially literate. Unfortunately, most people fail to learn financial literacy because it was not a subject that was discussed in the home or a subject that was taught in school, where most of our learning takes place. Furthermore, as life goes on, many people lose confidence in their ability to learn how financial products work and how they may be able to work in their favor. The good news is that it is never too late to learn, and you can start learning today. If you would like further guidance, feel free to schedule an appointment at drewbersolutions.com. For everyday tips to save money and build wealth, follow Kelly at www.instagram.com/kellyfowler360.