Each of us has a unique financial path. One must acquire financial knowledge and skills to ensure a successful financial path for financial stability, resilience, and wealth building.
Some surveys and data indicate individuals and families who have strong financial paths are financially literate and have these commonalities:
⮚ Delayed gratification (not quick spend) or long view of life
⮚ Increased savings and investments
⮚ Limited consumer debt
⮚ Diversified investments (real estate and financial assets)
⮚ Sound mortgage and auto loan decisions
⮚ Accumulation of retirement savings
⮚ Higher wealth accumulation
On the other hand, surveys and data show that those individuals and families who lack financial stability, resilience, and wealth are likely to have these commonalities:
⮚ Impatience, e.g., current gratification, “present-biased”
⮚ Limited savings
⮚ Limited or no investments
⮚ Casual spending
⮚ High debt loads
⮚ Low retirement savings
⮚ Poor loans (use predatory loans)
⮚ Limited wealth
It is important to increase Americans’ financial literacy because this knowledge offers individuals and families the opportunity to enhance or maintain their long-term financial well-being and economic security. In fact, raising Americans’ financial literacy allows everyone to participate in a broader spectrum of the American economy and creates a more stable, fairer, and robust marketplace. Moreover, increasing one’s financial literacy can yield economic security, which can eliminate the financial stress that leads to socio-economic problems that have a negative impact on society.
Each day, we make financial decisions-consciously or unconsciously, and how we approach those decisions has a tremendous impact on our ability to maintain economic security, which is the endgame. Therefore, it is imperative that we acquire the financial knowledge and skills needed to make informed financial decisions regarding the use of our financial resources.
Our quarterly “Financial Success” newsletter (https://sfepd.org/newsletters/) offers excellent financial knowledge, up-to-date financial information, and strategies to help you develop your financial path.
Theodore R. Daniels is the founder and president of the Society for Financial Education and Professional Development, Inc. (www.sfepd.org)
