You may have heard the term “financial literacy” which by definition is the education and
understanding of various financial areas, such as saving, spending, investing, insurance, budgeting, retirement and tax planning.
Financial literacy fundamentals are often taught in schools starting in middle or high school, with mixed results at best. A study completed by George Washington University and PwC proves this point. Based on a survey of over 5,500 Millennials, it was determined that only 24% of Millennials exhibited basic financial literacy, and only 8% demonstrated high financial knowledge. Part of the problem is that school-taught financial literacy focuses on concepts with limited application to the school-age audience. To help this young audience succeed over time, we must be prepared to offer timely support to foster “financial know-how”. Continue reading “Developing financial know-how by learning to speak money management”
important section from my book, Following Your Money, on personal flow of funds. This fundamental personal finance concept was the inspiration for naming my website. Clearly in order to follow your money you must understand the concept of cash inflows and outflows, and most importantly how decisions regarding those flows will impact your ability to fund life events and goals.