Did you know that financial illiteracy is the #1 Economic Crisis in the world? And sadly enough, only 30% of people in the world are financially literate. You are probably wondering what does being financially literate means? The short answer is that someone who is financially literate knows how money works. Being financial literate means understanding how to earn, spend, save, manage and invest money.
Take a look at these facts that confirm the damage financial literacy has caused in American households:
- 44% of Americans don’t have enough cash to cover a $500 emergency.
- 43% of student loans borrowers are not making payments
- 40% of households have credit card debt
- 35% of adults have no retirement savings.
Most adults make enough to put their money to work, but they don’t know beyond earning and spending money. Because of this, saving and investing is not a priority, and financial freedom is just a dream, not a reality.
The good news is that it is never too late to become financially literate, and most importantly, learn how to make your money work for you instead of you working for your money. Make learning about earning, spending, saving, managing, and investing a top priority, and you will see that becoming financially literate is not as complicated as it seems to be. It is just a matter of getting started…
What are your thoughts about financial literacy? Are you financially literate? If not, what is holding you back? If yes, how did you learn about the five building blocks of financial literacy? I’d love to hear what you have to say about this topic…
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