deepstash

Beta

Deepstash brings you key ideas from the most inspiring articles like this one:

Read more efficiently

Save what inspires you

Remember anything

How financially literate are you? 3 things you should know about your money

https://ideas.ted.com/how-financially-literate-are-you-3-things-you-should-know-about-your-money/

ideas.ted.com

How financially literate are you? 3 things you should know about your money
Most of us received little guidance or instruction in how to handle money, but that's OK, says financial expert Natalie Torres-Haddad.

5

Key Ideas

Save all ideas

Financial Literacy

Financial Literacy

While kids and teens get to learn about a lot of stuff, most families and schools do not teach them how to manage their money. In some families, it is considered a taboo subject and many friends are too busy showing off to help others manage their finances.

Even the basics of financial literacy are not taught at an early age, resulting in many of us falling into the trap of consumerism and debt.

149 SAVES

591 READS

VIEW

In And Out

Most of us know how much we make, but we need to pay close attention to how much money is actually coming in post-tax, and how much is going out.

You can start by writing down your Starbucks, Uber, Amazon, and take-out expenses, along with your car insurance, utility bills, subscriptions and memberships. Slowly we can realize that many of these small expenses add up to huge figures.

161 SAVES

544 READS

Review And Analyse

By noting down all your expenses on pen and paper, or on the PC excel sheet, you can start to review and analyse your spendings on a weekly or monthly basis. This will make you find innovative ways to save money, catching hold of ‘runaway spending’ that went unnoticed before.

Example: You could find that the $5 Smoothie that you had every day, could cost much less if you made it at home.

155 SAVES

440 READS

Know Your Scores

Knowing your credit scores and the details of the mortgage, loans and credit card activities that impact it, can help you manage your financial credit. You can find ways to improve your credit score once you check it for free using a variety of apps and websites available.

Before you take a big loan, it is advisable to check your credit score in all the available agencies in your country.

141 SAVES

361 READS

Credit Card Debt

The trickiest form of debt, which is literally bleeding our finances, is the credit card debt. Make sure you know what the interest rate being charged is. Know that a 2% interest rate per month is actually 24% per annum.

If you stay out of debt by paying the total due on time, and not compound the interest, having a credit card with a good score can affect your credit score in a good way.

147 SAVES

564 READS

SIMILAR ARTICLES & IDEAS:

The Golden Rules of Personal Finance

  • Spend less money than you earn
  • Always plan for the future: you should always look forward beyond the current month
  • Make your mon...

Myth: Shop Early for the Best Deals

Myth: Shop Early for the Best Deals

While early holiday shopping can snag you discounts and the best selection, you are most likely to get the best deal just before holiday shopping.

Retailers need to move h...

Myth: Buy Coupons for Huge Discounts

Coupons are sold in lots to allow couponers to stock up on the best deals.

While coupons are great to save money, it does not make sense to spend on coupons in order to save. Coupons vary greatly by geographic location and store, and may not apply to your geographic area. Instead of buying coupons, get the Sunday paper for better ads, download an app or keep a coupon binder to stash extras.

Myth: Always Buy in Bulk

It makes sense to stock up on non-perishable items such as soap and canned goods.

However, buying wholesale perishable items like fruit and milk might mean it goes to waste if you can't consume it before the expiration date.

6 more ideas

3 Financial Basics

  1. Create a Financial Calendar: prevent yourself from forgetting quarterly tax payments and to get credit reports.
  2. Check Your Interest Rate: Pay off loans, open saving accou...

Budgeting Like a Pro

  • Consider an All-Cash Diet, as limiting yourself to physical currency combats overspending.
  • Set aside 1 minute a day to check on your financial transactions, to identify problems, track goal progress and set your spending tone.
  • Allocate at least 20% of your income to financial priorities like emergency funds, debts and retirement fund.
  • Budget about 30% of your income for nonbasic spendings, like entertainment. Abiding by the 30% rule, you can save and splurge at the same time.

How to Get Money Motivated

  • Draft a Financial Vision Board, it motivates and helps you to stay on track with your financial goals.
  • Set specific financial goals stating the reason, the way, numbers and dates.
  • Adopt a spending mantra, a phrase that serves as a rule of thumb for how you spend.
  • Love yourself. Taking control of your finances is part of that.
  • Make bite-size money goals. Make the bigger ones but also small step goals to get there.
  • Don’t be a financial fatalist, and switch to more positive mantras.
  • Get your finances and body in shape. The discipline associated with regular exercising translates to managing your money well.
  • Appreciate what you have now, instead of being a consumerist.
  • Get a Money Buddy. Studies indicate people pick up good habits from friends with similar traits.