Empowering Yourself with Knowledge on National Financial Awareness Day!
Today – National Financial Awareness Day – is a significant occasion highlighting the importance of being informed and empowered about personal finance matters. It serves as a reminder to take control of our financial well-being and strive for financial literacy. We at Ascentim thought this was the perfect occasion to explore the value of financial knowledge, the consequences of financial illiteracy, and how you can empower yourself through education.
Empowering Yourself with Financial Knowledge
Literacy is the foundation of financial well-being. Therefore, the more knowledge and understanding you possess about personal finance – the better equipped you are to make informed decisions and navigate the complexities of money management. And individuals who receive financial education are more likely to save, invest, and make informed financial choices. So if you want to take control of your financial future, actively seeking knowledge and staying aware of money trends and concepts is a great way to start. And doing so is crucial because those who don’t pay a hefty price for financial illiteracy.
The Consequences of Financial Illiteracy
For example, in a survey conducted by the National Financial Educators Council (NFEC), 3,001 American adults were asked to estimate their financial losses in 2022 resulting from a lack of financial knowledge. The survey, conducted between October 23 and December 5, 2022, revealed that the average estimated cost of financial illiteracy was $1,819 per person. While that may not seem like a lot, if we extrapolate the results to represent the approximately 254 million adults in the United States, the results are staggering!
Financial illiteracy is estimated to have cost Americans over $436 billion in 2022.
Need more proof? Allow me to provide additional data points highlighting the high cost of financial illiteracy:
- A shocking 58% of Americans have less than $1,000 saved, leaving them vulnerable to financial emergencies and future planning challenges.
- Half of American households live paycheck to paycheck, indicating a lack of financial resilience and the inability to handle unexpected expenses.
- Americans’ total credit card debt has reached a staggering $1 trillion, showcasing the prevalence of debt and its long-term consequences on individuals’ financial well-being.
- A concerning 44% of Americans do not have enough cash to cover a $400 emergency. That underscores the financial vulnerability that stems from inadequate savings and preparedness.
These statistics are compelling evidence of the high cost associated with financial illiteracy. Furthermore, the data demonstrate an urgent need for individuals to prioritize financial education and empower themselves with the knowledge and skills necessary to make informed financial decisions.
The High Price of Financial Ignorance
Now, let’s put a personal lens on the data. Consider the story of Jennifer, a hardworking individual who lacked basic financial knowledge. She lived paycheck to paycheck, never prioritizing savings or investing. Because Jennifer often relied on high-interest credit cards to cover emergencies, she was drowning in debt. The consequences of her financial illiteracy were evident—constant financial stress, limited opportunities, and feeling stuck. However, after attending G.R.O.W. Finances, Jennifer acquired essential knowledge and skills. She learned about knowing her numbers, creating an every-dollar budget, and the power of making SMART financial decisions. With newfound financial literacy, Jennifer transformed her financial situation, paid off her debts, and started building a secure future for herself and her family.
3 Action Tips to Improve Your Financial Knowledge
- Read Recommended Books and Resources: Start by reading books and online resources recommended by financial experts. Look for reputable sources that provide practical advice and insights into various aspects of financial management.
- Attend Webinars or Workshops: Take advantage of online webinars or in-person workshops focused on financial education. Many organizations and financial institutions offer free or low-cost educational events. Participating in these events can deepen your understanding and provide valuable insights from industry professionals.
- Engage in Online Financial Communities: Join online communities or forums for personal finance discussions. These platforms allow you to connect with like-minded individuals, share experiences, ask questions, and learn from others’ journeys. Engaging in money talks can help you gain new perspectives, discover helpful resources, and receive support and guidance from the community.
Empower Yourself with the G.R.O.W. Finances Course
To empower yourself with the knowledge and skills needed for financial success, consider enrolling in my award-winning G.R.O.W. Finances Course. This comprehensive 4-part program covers crucial topics such as budgeting, debt management, saving, and investing. And it’s accessible, offers practical advice, actionable strategies, and provides guidance to help you navigate your financial journey.
Save $200 when you register for the G.R.O.W. Finances Course at https://grow.ascentim.com by August 31, and use coupon code SAVE200.
Don’t miss this opportunity to invest in your financial well-being and set yourself up for a brighter, more secure future.
On Financial Awareness Day, take a step towards empowerment by recognizing the value of financial knowledge. By educating yourself and seeking out resources like the G.R.O.W. Finances Course, you can build a solid foundation of financial literacy, overcome the consequences of financial illiteracy, and set yourself on a path to financial success.