What Is Financial Literacy and Why Is It Important?

Forget life hacks! Here at Renaissance Womanhood we believe in making educated decisions towards long-term solutions. We want quality and sustainability. We want to thrive!

That’s why we’re huge advocates for financial literacy. Now, this may be a term you’ve heard thrown around, but may not fully understand. Don’t fret! That’s where we come in! It’s time to talk about why financial literacy is so damn important! Are you ready?

Financial literacy is having the knowledge, skills, and confidence to make responsible financial decisions.

Now, you may be thinking, “That’s great, but what does that actually mean?” Well, let’s break it down.

Knowledge:

Financial knowledge is about having a good understanding of financial matters such as: spending, budgeting, banking, savings, and credit.

Skills:

Financial skills are the ability to apply that knowledge to your day-to-day life.

Confidence:

Financial confidence is about having the self-assurance to make important financial decisions.

Responsible financial decisions:

It’s important to note that ‘responsible financial decisions’ means that you’re making choices that are appropriate to your personal circumstances. You need to distinguish what is best for someone else and what is best for you.

Financial literacy is not only important now, it’ll be important for the rest of your life.

Taking the initiative right now to educate yourself and build lifelong habits will benefit you long-term. A good idea at 20, will be a great idea at 30, which will be indispensable later in life. Set yourself up for success!

Being financially literate will help you…

  • Be better able to make day to day decisions about your spending and stay on top of your financial obligations.
  • Better navigate the financial marketplace and buy products & services that best meet your personal needs.
  • Plan ahead about how to use your money for life goals, such as home ownership or retirement.
  • Deal with government programs.
  • Evaluate financial advice you receive from friends, family, and professionals.
  • Maximize resources at your disposal, such as workplace benefits, pensions, tax credits, ETC.

 So, how do you become financially literate?

You can start by educating yourself! There are so many resources out there:

Looking for in-person help?

  • Lots of postsecondary institutions have workshops and courses for students. If you’re a student, see what’s being offered on campus!
  • Check out your local library to see whether they offer workshops or lectures on personal finances.

Are you feeling motivated? If you’re ready to get started on your journey towards financial literacy, we suggest you start with a financial check-up! Download the Penny Wise Challenge for FREE to better understand your spending. 

You can also check out our Budgeting for Beginners videos on YouTube. There we’ll show you how to track your spending and build a budget using our beginner-friendly templates!

Who’s got this? You’ve got this. 🌞

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