Consumer and Financial Literacy

As I have read, and even I am aware around me nowadays, that people are very strict with their money. These financial crises are ruining lives, half the U.S. is not saving properly. People have to learn to use or re-learn the knowledge of financial literacy, these problems can make someone’s life a living hell.

Knowing and understanding the financial options that are surrounding each person, is vital. Especially for college students. Many college students like myself seem to come into college without any credit, which is understandable. This is when you will start earning your own credit (at least this is how I begun), right when you get your own place, and this is a very important part of your financial process. You want to make sure you pay your bills first before paying anything else. Not being able to pay for your electricity, water, etc. will put you in a hole if you need any loans for college or anything else. For some people, they might be earning credit sooner with car payments or college loans.

Another thing is that most college use their credit cards so much they get into thousands of dollars of debt. According to the 2006 academic conference paper, most of all financial knowledge by a college student, is that they know the aspects of a credit card and they know how to use them. Some students don’t even apply to college for fear of going into debt because of the tuition costs of college. That is the one thing that fears a young adult more than anything. More often, these young adults choose the military to avoid having to get a loan, and they will then be paid to go to by the military, which is not a bad option. These are not only important, but essential for financial health.

As bad as college kids are at controlling our money, we are not the only ones who can’t take care of their money issues, these financial issues get to everyone and anyone. What people need to learn is that this is an ongoing process. When you become elderly you must remember that you have to plan out a retirement plan, and calculate what you will be receiving. Having a retirement plan you have to ask yourself, where am I receiving income, is your debt finally paid off, etc. There is always something to worry about when dealing with money, and that’s just the way it works, for credit, retirement plans, mortgages, loans, and everything else that deals with finance.

Once everything is finally paid off, still use those skills to enhance your life. Many people just go on, but there are other financial options that you can use to stay ahead with your money. One of those is saving up money and letting the interest collect you more money over time. Another one, but not a recommended one for it’s technically not a valid statement for financial options. But, there are also possibilities to buy stock, which is risky and could pay off, but more than likely you will have to drop this idea unless you have some money that you can spend on stocks like that. But just to make this as clear as I can be, stocks are not a safe option to raise money, they are for the risky people who want a whole chunk of money right in front of them. Unless you know what you are doing, stay clear and make sure you can use a better option than buying stock.

One thing that will help out later on in life is what you do now; the right choices and correct judgment will help you out later on in life. However, just knowing about money and some financial skills is not all, you have to have confidence to be successful in this area. Having the confidence might help you create better judgment on how to successfully deal with money and the knowledge of how money works.

Working with a consumer finance company isn’t something you want. You want to be able to secure loans, and you don’t want to be paying higher interest, that’s something you want to avoid. Interest is high because they are securing the loans, when at a bank you can secure your own, and you don’t have to pay as high of interest.

Learn how to use consumer and financial knowledge to your advantage. The one thing you just want to completely avoid is by having to owe whomever, a ton of money. You will be in debt, you have the possibility of losing your house, car, and ultimately you’re committing financial suicide by not understanding the ways of money.


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