The Importance of Financial Literacy

We go to school to learn new things. We want to be able to equip ourselves with the knowledge and skills necessary for adult life. Math, Science, English. These are all important subjects. But I believe that the most important subject of all is not taught at universities. Rather, it is taught in the school of life. This is financial literacy.

Financial literacy is defined as the ability to understand the language of money. To understand a book, you have to be able to know how to read. In the same way, to become wealthy, you have to be financially literate. You have to be able to understand how money works. Financial literacy can only be achieved through financial education.

Many people refuse to take responsibility for themselves. They blame the government, their parents, their boss, or some other person for their current financial situation. It may be easier to blame other people but the truth is you are responsible for your life. Like most things in this world financial literacy can be learned. And it can only be learned if you actively seek it out.

Financial literacy is important because it is only through being able to understand how money works that we can conquer it. Most people say, “Oh, money is not important.” Or, “Those who want to be rich are greedy people.”  But this is only ignorant talking. Money may not be the only thing that matters but it does affect everything that matters: education, family, health… Without money how can you take care of your family? How can you send your children to school? How can you go on family vacations?

Making money is a skill. And like most skills, it can be learned. If you want to become financially free the first step to this is financial literacy. The reason why so many people are poor and remain poor is that they don’t understand how money works. They do not know how to handle money. The importance of financial literacy cannot be overstated. If you love yourself and your family if you don’t want to work forever at a job you can’t stand, then study how money works. Become financially literate and start working on your way towards financial freedom.