If there is one thing you can count on from your finances, it is unexpected challenges. From expenses that pop-up out of nowhere to procedures and principles you’ve never encountered, it may sometimes seem as though you’re at a financial disadvantage, when compared to others. Or that you’re simply bound for financial failures, lacking the knowledge needed to have a healthy go. As real as the defeated feeling may be, at times; it’s possible you might be your own worst enemy, making your finances more difficult than they need to be.
Financial literacy was once considered an essential pursuit, but are modern household money managers turning their backs on valuable financial lessons? Or is inadequate education to blame for the financial missteps troubling recent generations? Are we failing to pass on the skills and information young people need for monetary success?
In practice, it may be a combination of factors, occasionally pulling us in the wrong financial direction. Whatever outside influences contribute to bad financial habits, each person accepts responsibility for their own affairs. Why not make the most of the hand you’re dealt and live a stable, healthy financial life?
Unfortunately, there’s evidence we might not be working as hard as we should be, keeping our financial affairs in order. By making personal finance more difficult than it has to be, too many reasonable adults are quick to throw their hands up in defeat, rather than working-out the financial details of their lives.
Success Starts With Solid Maths
As your personal finances grow more complex and larger sums of money are at stake, it may take greater effort to keep everything straight. Although you’ll face new questions and occasionally trod unfamiliar territory, underneath it all; a solid maths foundation is at the root of financial success.
Whether you realize it or not, a lifetime working with numbers has trained you to manage money, since your first maths lesson. There is no excuse for giving-up on your finances, just because you’re too lazy to do the maths. If you’re having trouble applying the lessons you’ve learned to everyday financial situation, you may need help connecting the dots.
Starting with a solid numbers foundation, consulting debt charities and other resources can help reinforce your understanding about finance terminology and practices. You may feel intimidated by the variety of financial relationships and responsibilities at hand, but don’t count yourself out when unfamiliar financial concerns arise. There’s always help available and most routine concerns are straightforward, relying on basic maths understanding.
Changing your attitude about household finance can help you become more confident about day to day money management. Start by removing the mystery from cash flow, budgeting, credit relationships, and other financial fundamentals.
Education in schools has fallen short, in many cases, so some Britons find themselves without a crystal clear picture of financial basics – even relatively late in life. According to some familiar with the problem, early education would help close the gap. Even though financial planning is a big part of preparing for college, recent data from Money Advice shows only about 40 per cent of youngsters report learning about money management in school or college.
In addition to boosting young people’s exposure to practical finance lessons, it is thought more opportunities for adult education would also help Britons catch up on financial literacy and close the information gap among established adults. Recent polling indicated only half of those between 55 and 64 years of age had put serious thought into their retirement finances.
Until finance education expands – both for adults and school-age young people; it is up to Britons to uncover the answers needed to take charge of their finances. You’ll gain insight and savvy over time, so don’t be too hard on yourself when personal finance challenges leave you at a loss. Instead, turn to fundamentals like accurate calculations and don’t give up on important lessons. By sticking with it, you’ll not only find confidence, but you’ll also lay the groundwork for a stable, secure financial future.