A beginner’s guide to financial literacy. Are you financially literate. Learn what you need to know about money. Financial literacy is the same as financial education. It’s time to learn about money, how to earn it, how to manage it and how to make it grow (invest).
In this video, I chat about what financial literacy can lead to and this is being able to leave a job that you are not happy with; not living pay check to pay check; having money put away for emergences; having enough money to cover your chosen lifestyle; and having a general positive feeling towards your money.
The 12 signs of financial literacy are:
1. You know and understanding your incomings.
2. You know and understand your tax rate.
3. You know and understand your outgoings.
4. You know and can calculate your savings rate.
5. You can set achievable and realistic financial goals.
6. You understand compound interest, where to get it and how to calculate it.
7. You have a basic understanding of each of the main asset classes.
8. You know your interest rate on all of your financial products.
9. You understand the difference between good debt and bad debt
10. You know the fees associates with all of your financial products.
11. You understand your retirement account, the investment options available, the fees, and any tax benefits that might be available.
12. You have a basic understanding of inflation and how it affects your money.
LINKS MENTIONED IN THIS VIDEO:
Mr Money Mustache’s Shockingly Simple Math Behind Early Retirement: https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
The Balance’s explanation of Compound Interest: https://www.thebalance.com/compound-interest-4061154
The Calculator Site Compound Interest Calculator: https://www.thebalance.com/compound-interest-4061154
Jago Investor’s explanation of the different types of asset classes: https://www.jagoinvestor.com/2016/06/asset-classes.html
Money Magazine (16 Things you should know about Superannuation): https://www.moneymag.com.au/16-things-know-super
Investopedia’s Inflation Example: https://www.investopedia.com/terms/i/inflation.asp
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BOOKS TO READ
Motivated Money: https://amzn.to/2R1YJcz
DIE WITH WITH ZERO: https://amzn.to/3CfizpY
The Simple Path to Wealth: https://amzn.to/327vpYz
Your Money or Your Life: https://amzn.to/3jZm3o3
The Index Card: Why Personal Finance Doesn’t Have to Be Complicated: https://amzn.to/3tzcsdl
I Will Teach You To be Rich: https://amzn.to/35gvv2g
The Barefoot Investor: https://amzn.to/336AKP5
Money Made Simple by Noel Whittaker: https://amzn.to/327Elxa
Atomic Habits: https://amzn.to/32cCh7j
The 5am Club: Own Your Morning, Elevate Your Life: https://amzn.to/3h7PZwc
HOW I MAKE MY VIDEOS
I use Keynote to make my slides using images and text for from Canva:
https://www.canva.com/join/rake-gardens-nails
I then record my audio using my blue yeti microphone: https://amzn.to/2ZfJv8A
I then use iMovie to link my audio with the Keynote slides.
Please note: some of these links are affiliate links where I’ll earn a small commission if you make a purchase at no additional cost to you.
Disclaimer:
The information on this YouTube channel and the links provided are for entertainment and general information only and should not be taken as constituting professional advice. I am not a financial advisor. The information on this channel is personal to my situation and does not take into account your personal circumstances. You should do your own research and if necessary consider seeking independent financial advice that is related to your unique circumstances.
#financialliteracy #financialeducation #familyfinance
