Financial Literacy: What does this really mean?

Without money management skills, even the wealthiest person can go broke in no time. Financial Literacy plays a significant role in your daily habits, lifestyle, choices, and future. Find out more about this role.

Without money management skills, even the wealthiest person can go broke in no time. As random as the phrase is, Financial Literacy may not mean a lot to you, but it plays a significant role in your daily habits, lifestyle, choices, and future.

Knowing what to do with the money in your possession, the best things to spend it on, the most profitable places to invest in, including every other financial choices you make, all sum up to Financial Literacy, as we know it. In a nutshell, Financial Literacy is the ability to understand, manage and grow money effectively. 

Why you should embrace Financial Literacy

  • It is a responsible thing to do

The status of your finance, directly and indirectly, affects every aspect of your life. Therefore, embracing Financial Literacy only makes you more responsible to yourself and your resources.

  • It is an important Mandate

In line with the instruction by the Central Bank of Nigeria (CBN) to promote a sound financial system in Nigeria, you should key into the trend by getting acquainted with every necessary skill needed to effectively manage your finance.

  • You need it like air

Financial Literacy is as important as primary education and you need it, irrespective of how much you have in your possession.

How to increase your Financial Literacy

  • Get rid of the fears

For some reasons, a few people are comfortable keeping their money where they can see it because they are scared of putting it into use. Relax! Your money is safe and will love you more when you make it work for you.

  • Romance your finance

Money management can be likened to a romantic relationship: the more you know your money, the more both of you will be in harmony.

It is your obligation to romance your finance by keeping intimate tracking on your earnings, how much you spend daily/monthly/yearly, what you spend on, how much of your money is in debt, how much you owe, and everything else about your finance.

  • Get financial advisor

Rather than leaving your money dormant in the bank, there are several things you can do with it to attract more money. A financial advisor has in-depth knowledge of all of these investment options and can help you make a wise decision on which to go for.

  • Invest

Treasury bills, mutual funds, fixed deposits, stocks, shares and even SMEs investments, are some of the great platforms to invest in. Bearing in mind that nobody ever got richer by hoarding their money, improve your level of financial literacy and explore various investment schemes. This is one way to secure your future and obtain Financial Freedom, in time.