Last fall, a CNBC report came out which revealed 94% of Americans failed a basic personal finance quiz with just six-questions. This spring, Forbes published an article, revealing that 44% of Americans don’t have enough cash to cover a $400 emergency.
We can go on and on with personal finance stats but we’ll spare you the nightmare. The harsh truth is that America is failing when it comes to financial literacy. And a big reason for this is that it’s simply not taught widely enough nor early enough. In fact, the same Forbes article mentioned above revealed that only five states require students to learn personal finance – Utah, Alabama, Montana, Tennessee and Virginia.
If you feel cheated by the school system and lacking financial savvy, rest assured that you can catch up. Although there is no crash course when it comes to a financial education, there are plenty of resources that can guide you to better monetary decisions over time.
A Post-Post Secondary Education On Personal Finance
Apart from not learning enough about finance in school, both younger and older adults often don’t know where to turn in order to learn about money. You might feel the same way. Maybe you know the basics – you should save money, don’t overspend, pay your bills on time and invest where possible. But the same question for all of these wise goals still remain – how?
Granted, there is often more than one path to accomplish any of these goals, and they often depend on your personal circumstances, income, existing debts and other factors. Nevertheless, people tend to make the same silly mistakes with their money no matter what path they’re on, not because they’re unintelligent, but rather, uninformed.
And to make things worse, there are many conflicting sources of information out there that don’t offer much in the way of crystal, clear information. But there is hope.
Sources of Personal Finance Information You Can Trust
Despite all of the noise out there when it comes to financial literacy and education, there are some sources that are reliable. Ultimately, it’s not so much the source as it is the person or people who push the information out there.
Online Courses
The beauty of online personal finance classes is that they foster a classroom environment without you feeling like being in a classroom. They offer a “curriculum” full of different topics and yes, assignments, for you to study and complete. But you can complete them at your own pace and you can choose what courses you want to take – all of which can be done from your couch or bed.
The key thing to keep in mind with courses is their focus, reputation and price. Some courses will focus mainly on budgeting (savings and spending), while others will discuss investments or taxes. Reputation is huge: check the credentials of a course’s instructor as well as reviews of the course. That alone is a tell-all for whether you should take a course or not. As for price, you should pick a course that caters your budget.
To help you get started, take a look at this list of courses.
Finance Consultants & Coaching
If you have a few extra dollars, speaking to a financial consultant or coach one-on-one can be quite comforting and enlightening, especially if debt is a major issue for you at the moment. Of course, it can be a bit intimidating at first. But remember, a financial coach isn’t there to embarrass or judge you but rather, to guide you.
In many ways, they’re like therapists. And they go beyond providing you with comforting words, by giving you practical steps you can start implementing immediately for your financial goals. Since many coaches have worked for banks and financial institutions, they can give you lessons that no school teacher or bank teller could ever dish out.
This may include:
- Tips to consolidate debt without filing for bankruptcy
- Learning how to minimize your liabilities while maximizing your assets
- “Plugging the drains” in your account that causes money to seemingly disappear.
Other Sources
There are some other sources out there which can provide some invaluable information, although they tend to come with a few downsides. The suggestion here to use them at your own risk.
Books – Some finance books have been written by now famous figures, who have provided timeless advice. Be cautious with certain books, however, especially ones that were written several years ago as they may now contain outdated information.
Blogs – Some blogs have risen through the ranks and became popular sources of financial information. Again, you need to take their information with a grain of salt, because some blogs post information from a biased perspective, or give advice that’s not suitable for everyone.
It’s Never Too Late To Learn
It’s true that many of you missed out on a decent financial education by no fault of your own. But with the internet and so many resources at your fingertips, there’s no reason to stay in the dark.
The quizzes or questions about finance you couldn’t answer can turn into ones that no longer stump you.
Whether you enrol in an online course or hire a financial coach, you can learn plenty of tips and words of wisdom that will put you on a path to financial clarity and freedom.