Why Financial Literacy Is So Important
“Only 40% Of People Consider Themselves Financially Literate”
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Like Dr. Suess said, “The more you learn, the more places you’ll go”
In our modern society, the more knowledge you have, the bigger advantage you have over other people who you’re competing with each and every day.
It’s also this knowledge that allows you to do whatever you want because in the end knowledge is arguably the most important thing in the world.
Whether you want to be the greatest lawyer in your town, or you want to be the greatest archeologist the world has ever seen, your first step is always going to be to grow your understanding and your knowledge.
The same principles apply for when it comes to your understanding of how money works.
The thing about money is that it’s arguably the most powerful tool in the world, as it gives you the ability to do whatever you want as long as you have enough.
The problem with our knowledge of money is that it’s being taught by a school system that was designed to work over a hundred years ago, and unlike everything else in our world it has failed to adapt, but that’s another topic for another post.
It’s through our ignorance of how to properly use money that most people end up becoming financially illiterate which then lessens your potential for building wealth, which in my opinion is a terrible deal.
Why It’s So Important To Learn Financial Literacy
This is how I learned to manage and view money before I learnt everything for myself.
In school, I and probably millions of other kids were taught that you have to get a job, put all your money into a savings account, and then work for 40+ years to retire at 65.
It’s the same thing, over and over again, and I’m no finance guy at all but that’s an absolutely horrible return. 40 years spent working for usually only 15 to spend in your old age before you die.
The thought of that is enough to scare me into working as fast as I can to make sure that doesn’t happen.
Now, I know I’m young but I’ve had my fair share of working and since I work with older people, I get to experience what they share and feel.
I’ve noticed that when people are working for someone, they’re lives are filled with fear. Fear of being fired, fear of making their superiors mad, fear of being late, fear of not being allowed time off.
As happy as they believe people believe they are at their jobs, it sounds like they’re living in fear, day in and day out.
That’s why financial literacy is so important. I believe that there’s more to life than living under the boot of your boss when they get to control every aspect of your life while you’re supposed to be grateful to work for them.
Now, I’ve worked with some pretty shitty people but I’ve also worked with some pretty wonderful people too. Not all bosses are jerks, but what I’m able to pick up from other people is that a shitty boss is easier to find than a good one.
I’m going, to be honest. I hate working. The thought of going to a job to do something for someone else, so they can make more money, all for exchange of a small check doesn’t sit well with me.
I’m not saying that I don’t work, which I do, I just go for different reasons. There have been tons of people who are shocked when I tell them I don’t come to work for the money. I tell them I come to work to learn and to be able to immerse myself in new ideas further down the road.
The thing I find financial literacy does the best is it sets you on your path to becoming financially independent because when you're working at a job, you become dependent on your boss to pay you.
When you begin to learn how to make and manage your own money, you get to split away from being dependent on your boss, which is great because when you're dependent on another person for money, they get to call the shots on how much you get paid.
They determine how much you get paid when you get to work, and what little time you get for yourself. Since money is the major ruler and of most people, the person who gives you your money at the end of the month has power over you.
When you become financially literate, you become in charge of your own stuff.
It usually won’t be easy, and there will be new feelings of fear, but in my mind, it’s better to be in charge of your own life and still be fearful instead of being fearful of someone else.
Where You Can Learn Financial Literacy
You’d think that something so valuable would be hard to learn, when in fact it isn’t. It doesn’t even have to cost much either, a hundred dollars and you should be set to go. Here are the places where I’ve learned everything I know and where I continue to learn from.
This is where the majority of my knowledge has come from. It all started when I came across a book suggestion on Instagram.
This book was none other than Rich Dad Poor Dad, and I can strongly say that this was the beginning of my journey down the entrepreneurship trail.
Personal finance books are like goldmines because you can be paying around 20 bucks for a book that will contain the knowledge to make millions.
I find it’s even better if you can find these good finance books at a discount price, like when they’re on sale or at say a thrift store because you get to pay even less than the twenty dollars.
From my experience, Rich Dad Poor Dad is the best beginning book to start with, as it covers basically everything you need to know.
Right after is the book Think And Grow Rich. This book will give you the mindset you need to be able to turn your dreams into reality.
Thirdly, we have The Richest Man In Babylon. This one shows you how you can be able to build your wealth by doing a bunch of saving hacks and tricks off of your paycheck.
These three are the best beginner books, but there’s hundreds more after and a quick google or Instagram search will show you the next level.
Youtube is my go-to learning source after books. I am a visual learner, so as I watch a youtube video, I get to see what it is they’re showing or teaching.
Youtube has an advantage over books because watching youtube is free, and everyone loves free. Youtube also has a HUGE library of content, with videos for every topic that you could ever think of.
I’ve stopped watching tv in my day to day life for about 3 years now, and whenever I do feel the need to watch something and let my mind wander, I watch youtube instead.
By switching from watching tv to youtube isn’t the biggest change, but the difference in the immersion to that extra information can make a difference.
My favourite youtube channel to watch is The Minority Mindset. This channel provides data and information about every topic that has to do with learning financial literacy.
This is where my first experience of financial literacy came from. Although the content on Instagram isn’t as in-depth as it is in books or on youtube, it still serves a great purpose.
Instagram posts are usually small and to the point, which is almost a better thing than the content being too long.
Small quick content is great when you don’t have a lot of time to learn, like when you’re taking a commute or waiting on a dinner break.
Instagram posts also take less time to create than a youtube video or a book, meaning there will always be more content put out faster and there will be way more of it.
My favourite Instagram accounts are again The Minority Mindset and Gary Vee.
This is another content form that I’m in love with. Podcasts are usually recordings of someone talking and discussing a certain topic.
The topics are usually extremely in-depth and detailed, and it’s great because most of the time the content is longer, which means more time to learn and be entertained.
I find that podcasts work best when you’re doing something that doesn’t require any brainpower. Like when you're doing something that’s repetitive and you can basically work on your body autopilot.
When I’m doing something that I don’t have to focus 100% on, it allows my brain to wonder. Audio formed content is great because, in times like this, it gives your brain something to focus on, instead of just mindlessly going back and forth.
Audiobooks work the same way, but instead of it being someone discussing a topic, it’s someone who is reading a book that’s been recorded. So if you can’t find the time to read, audiobooks allow you to kill two birds with one stone.
My favourite podcasts are the Gary Vee Experience, as it’s like all of the other content but you get to listen to it.
There are many things in life that require constant learning and practice to master, and financial literacy isn’t an exception.
Financial literacy has the power to be able to make you wealthy if you know what you’re doing and have the patience it requires.
The best part is it doesn’t even cost too much, not like the university or private classes that you have to pay money to attend, because half the time, they don’t work.
This is also like all those free classes or seminars you can attend that you see youtube ads for. There’s a reason someone is paying money to recommend a free course, which is because they’ll try to upsell you another course that does cost money.
I’ve been to a few free classes, and they’re all basically the same thing where someone tries to bullsh#t you into buying a crappy product or course.
It’s just not worth it.
If you choose the cheaper ways and have the patience to learn everything, I can promise that learning financial literacy will be a hundred percent worth it.
If you liked the article, please feel free to share it with your family and friends as it helps me out a lot.
Until next time,