So What About Financial Literacy?

The term “financial literacy” means having the knowledge, skills and confidence to manage

your finances well, taking into account your economic and social circumstances, where:

 “knowledge” means having an understanding of personal Financial issues;

 “skills” means being able to apply that knowledge to manage one’s personal finances; and

 “Confidence” means feeling sufficiently self-assured to make decisions relating to one’s

personal finances.

Financial literacy can be improved through financial education, information, instruction, training

and advice.

So Far You Have Been Financially Illiterate Right?

Financial literacy clearly benefits individual consumers, like yourself, and also their households, since you are able to make better and more informed decisions when it comes to saving for your pension, studies or ensuring that you contract a mortgage for your home which you are able to repay within a reasonable period.

People who make good financial decisions are more likely to achieve their Financial Goals, making them more likely to hedge against financial risks and negative shocks and support economic growth.

How To Practice Financial Literacy Now

Financial literacy is a key part of everyday life. Understanding the basic principles of finance enhances the ability of people to achieve their personal financial goals and to enhance job opportunities. This is done through an understanding of spending/saving/investing/risk along with the ability to read and understand financial statements.

This article here at Antoinegraham.com is a tool to help you help yourself. The purpose of sharing this information is to provide you (the reader) with tools, and resources to help you make informed decisions about your relationship with money.

As our elders have taught us, when we are learning, it is important to look at the past, present, and future. We need to acknowledge our past and understand how it influenced the present situation so we can move forward to creating our future.

In respect for that teaching, we share the journey of financial literacy by looking through the lenses of the past, present, and future.

Financial Management

1. Determine what you need and what you can do without:

Plan to meet your basic needs before thinking of luxuries. For example, ensure that your children’s school fees are paid before you spend money on alcohol and expensive clothes.

2. Decide what is important to you:

You should set financial goals to be able to manage your money well. Think of what you want in life and set goals towards achieving that. For example, if you want to buy land in 5 years’ time, start saving for it now. If you are working for something that’s important to you, and if you have a plan of action, you will be more likely to succeed.

3. Set family financial goals: The first step in financial wellness is establishing financial goals.

Establishing your goals is the conscious effort of examining, defining and writing down what

you want to achieve both financially and personally. Your financial plan should include the

goals, resources, and responsibilities of the entire family. You can achieve family needs but

not necessarily what each family member wants. For example, you can decide together what

schools to take your children to and which medical center your family can get treatment

from, according to your income.

4. Use passive income to meet your financial goals: After setting your financial goals, plan some passive income outlets to gain money while you sleep. At Antoinegraham.com that is what we focus on. You will not get enough money from one source of  income.

You can also cut your expenses and save: Look for ways to spend less so that you can save some money to help you reach your financial goals

5. Prepare a budget which is within your income: Once you have decided on your priorities, find out how much you need to pay for them. Make sure you plan not to spend more than you earn. When making your budget, keep in mind that prices usually change over time.

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