What is Financial Literacy?

     According to investopedia.com, financial literacy is the ability to understand and make use of a variety of financial skills, including personal financial management, budgeting, and investing. It also means comprehending certain financial principles and concepts, such as the time value of money, compound interest, managing debt, and financial planning. If we wish to improve our community and combat, poverty, social injustices, practice politics correctly and make meaningful progress it has to start with improving our economic base. 

     CNBC's Frank Holland, cnbc.com, reported on the "Squawk Box", that black spending reached a record $1.6 trillion, although our net worth declined 14%. How is that possible? As a race we've failed to understand and practice good financial habits. He returned, at a later date, to report a study done by Duke university, that reported the racial wealth gap is conservatively $11 trillion and could have ballooned to $13.5 trillion during the pandemic. In this same interview, cnbc.com, he shed light one ways the community can help close the racial wealth gap from One United Bank. 

• Own a home
• Own a profitable business
• Savings & Investing
• Having a Will
• Having Life Insurance
• Improve Credit Score

     While establishing this things are very important we must educate ourselves, kids, teens, and young adults on personal finance first. According to Investopedia, " Personal finance defines all the all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.” Understanding these terms can help you better control your funds and prepare for future financial success. We must improve our knowledge in banking, credit cards and their usage, how to create a budget, how to start investing, how to protect our assets, and pass them as an inheritance properly.

If you are looking for more financial literacy tips, Contact Us for a one-on-one consultation. Our goal is to empower you with information. And knowledge is the key to power.