I’m sure you’ve heard of financial literacy. It is a major focus of the media, academic and financial institutions, and has its own month (April). You may have also taken a class on the subject. Despite all the attention, financial literacy has been declining since 2020, according to a TIAA Institute-GFLEC report.
This is concerning, because even being financially literate may only take you so far. To be a skilled money manager and increase the likelihood of achieving your financial goals comfortably, you need to strive for financial proficiency.
What’s the difference? Financial literacy is the knowledge of fundamental concepts and principles of personal finance. Being financially proficient refers to the application of that knowledge (literacy) to achieve positive financial outcomes.
Unfortunately, considering recent statistics about the state of financial literacy worldwide, the foundation for building proficiency is still weak for many individuals and families. Moreover, even if you exhibit a high level of financial literacy, this does not mean you are financially proficient.
If you are interested in learning more about financial proficiency and 3 steps you can take to progress from literacy to proficiency, then please read on.
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