6 Tips for Increasing Financial Literacy

Sometimes when I think about my finances, savings, retirement, and where I want to be in 10 years, I get a little overwhelmed. I know we are not where we’d like to be, but it’s a process. I find that baby steps truly help, and sometimes it’s the small steps that make the biggest difference. With help from Massachusetts Mutual Life Insurance Company, these ginormous seeming tasks don’t seem so big after all. Because I personally believe financial literacy is so important for ourselves, and instilling in our children, I am partnering with to bring you 6 tips for increasing your financial literacy.

6 Tips for Increasing Your Financial Literacy

Identify your financial goals.
Any life coach will tell you that to achieve something, you first need to have a goal. I have also heard we are most likely to work toward and achieve a goal, if we have it written down. How can you start a savings plan if you don’t know what you’re tracking toward? The first step in understanding your finances is to identify your goals.
Get organized.
Create a simple budget tracker to map out your income, expenses and any savings efforts you currently have in place. This will help identify risks and opportunities that you can address in the future, and can be the beginning of your financial strategy. Strategies can help to achieve goals.

Use tools to help you project your savings needs.
It can be tough to know how much money you should be tucking away each paycheck. Whether it’s calculating how much you need to save for your child’s college tuition or planning for your retirement, look for calculators online to help you. Many tools ask you to enter basic information to help you determine what you need to save and simple steps to starting a savings plan. Sometimes a little advice can be a big help too; you can always start by reading up on saving for college or retirement planning and then move on to online calculators.
Consider your most valuable asset and how it affects your future.
Your home? Your business? Your ability to work? What is your most valuable asset? Whatever your valuable asset is, make sure you are protecting it – for your future’s sake. Exploring disability insurance can go a long way to ensure your family is protected if you were too sick or injured to work. Watch this video to help get you started, or try out an income gap calculator to see how a disability might affect you and your family. Just don’t let it get you too nervous – it is just to help you be prepared.
Teach your kids early.
Help your family be smart about finances, so they can build a strong future. Simple and fun activities can get them excited about saving for the future – like setting up a short-term savings plan with a personal piggy bank, and encouraging them to add to it when they have money to spare, from birthdays, allowances or loose change around the house.
Find the right people to help you.
When it comes to your finances, you need a strong team to assist you with important information and decisions.Working with a financial professional will help keep you on track and informed. It can take a minute to set up an introductory meeting, but the knowledge and guidance can go a long way to helping secure your financial future. Read more about the different types of financial professionals you can work with here and connect with one in your area here.