Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like. –Will Rogers
When you think of money, what comes to mind: security, possessions, adventures, or something else? Most of life revolves around money and its role in providing us something. It’s a place to live, food to eat, clothes to wear, transportation, education, and healthcare. You need money for all of these things. With daily interaction with earning & spending, how much about finances and money do you really understand? Are you financially literate?
Financial literacy
Financial literacy starts in childhood. Witnessing how families bought, spent, and saved shaped our views. Moreover, the values tied to money depend on the work needed to earn it. I grew up in a home where financial education was ongoing. My parents were children during the Depression of the 1930s. It was during those difficult times that their views of money were formed. They worked hard, saved throughout life, and invested prudently. My parents owned their finances and made decisions that were an incredible example. They provided the foundation for my life. I learned how to invest, and I understand why I do so. These thoughts shape my decisions and the emotional side of what motivates me. Understanding our values, habits, and goals is as important as choosing an investment.
I am writing about this topic because, unfortunately, I know many people who do not have an understanding of their finances. Additionally, we are expected to get an education, build a career, yet relegate finances and investments to others. I know people in their 50s and 60s who have little idea what their finances or investments look like. They do not understand how their money is invested and what their retirement will be. What is more shocking to me is they have no desire to learn.
Too many people seem distracted by the latest gadgets and trends on social media. They are not focused on what their financial statements say. These videos & posts I believe suggest there is an emotional factor that drives us to book vacations, eat out weekly and lease new cars every two years. These habits or impulses have a financial effect. It may not seem like a big deal at the time, we are justified that we can afford it. These expenditures add up to money that could help secure our retirement and future.
There are many people who don’t have a financial care in the world. Congratulations, you are in the minority. However, for most people, knowing how and why you spend is a start. Educating yourself is easy with all the resources available. Knowing how much you save and what you invest in can determine your golden years. This could mean the difference between enjoyment and struggle in retirement.
Here’s to financial education & informed investing. Good luck!
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