By skyforbes 
Being financially literate means having the knowledge and skills necessary to effectively manage your personal finances and achieve complete financial self-sufficiency.
Financially literate consumers are equipped to make informed financial decisions about a host of money-related matters, such as banking, budgeting, using and managing credit and debt, and saving for financial goals.
If you feel like an incomplete understanding of basic personal finance concepts cost you last year, you’re not alone. In a study by the National Financial Educators Council, the average self-reported cost of deficient personal finance knowledge in 2020 was $1,634. That’s about 2% of the 2020 median household income.
But financial literacy isn’t rocket science. With effort, you can overcome whatever knowledge gaps you face today and cease leaving money on the table.
How to Increase Your Financial Literacy
No one is born with expert-level financial literacy, and no one achieves it overnight. But that’s not to say becoming financially self-sufficient requires years of intensive study — far from it. Here’s what you can do right now to boost your financial know-how.
1. Money Management
From covering your expenses to where you keep your money, learn how to handle your finances on a daily basis.
Budgeting
Make the most of your money by learning how to budget it wisely.
Banking & Alternatives
Explore banking and legitimate alternatives to manage your money.
- 4 Different Types of Bank Accounts Explained. Choosing your first bank account isn’t always simple. Learn about the different types of bank accounts and the key benefits and drawbacks of each.
- Checking vs. Savings Accounts — What’s the Difference Between Them. Learn the difference between checking and savings accounts, the key features of each, and which is the best fit for you.
- Credit Unions vs. Banks — Differences, Pros & Cons. Credit unions offer numerous financial products that help people maximize their incomes and increase their savings. Is one right for you?
- 5 Steps to Take When You’re Rejected From Opening a Bank Account. These are your best options if you’re denied for a bank account.
- Should You Choose an Online Bank? — Considerations, Pros & Cons. Is an online bank for you, or are you better off sticking with a brick-and-mortar bank?
- 9 Reasons to Break Up With Your Bank — When Changing Makes Sense. When does it make sense to switch banks?
- How to Properly Close a Bank Account (Checking or Savings). Learn how to close an old account with your former bank properly and open a new one.
- What Is FDIC Insurance? — History, Coverage, Limits, & Rules for Banks. Learn about the Federal Deposit Insurance Corporation, which insures certain bank account deposits up to legal limits.
- What Is SIPC Insurance? — Coverage for Your Brokerage Account. The Securities Investor Protection Corporation provides some financial protection for assets held in brokerage accounts, though it’s not as comprehensive as FDIC insurance.
Managing Money With Your Partner
Things like budgeting and saving become more complex with two people. Here’s how to navigate household finances with your partner or spouse.
2. Saving Money
From short- and long-term savings to living frugally, these reads will help you stay on budget and meet your financial goals.
Savings
Want to put aside more money for the future? Save up for a vacation or emergency expenses? These pieces will help.
Frugal Living
Learn how to make your money go further by spending less.
3. Understanding & Managing Debt
Make the wide and often daunting world of credit and debt less intimidating by reading these pieces.
Debt Basics
Learn what common debt-related terms mean.
Your Credit Score
Your credit score plays a crucial role in your financial health. Learn how credit scores work and what your score means.
Credit Cards
The credit card is the most common type of unsecured consumer debt. Here’s what you need to know to be a responsible credit card user.
Loans & Mortgages
Dive into the dizzying array of debt products available to financially literate consumers and learn how they work.
Paying Down Debt
These articles can help you manage and reduce existing debt loads.
4. Financial Planning
Start here for guidance on financial planning and related concepts, such as taxes and goal setting at different stages of life.
Basic Finance Concepts
Setting Financial Goals & Principles
These articles cover the art and science of establishing your financial principles and setting achievable goals.
Taxes
- How to File Your Tax Return — Basics & Guide. Whatever your tax situation, we’ve got you covered. Learn about tax basics, prepare for completing your return, and understand the various credits and deductions you may be entitled to.
Help With Financial Planning
5. Protect Your Money
Learn to protect your money, whether from a disaster or financial scam.
Health Insurance
You never know what the future holds. Here’s how to decide how much health insurance coverage you need to protect yourself against the unforeseen.
Life Insurance
Protect your loved ones financially in the event of your death.
Property Insurance
Insure the physical things in your life, from your home to your car.
Other Insurance
Don’t forget these other types of insurance, which you may or may not need depending on your situation.
Avoiding Financial Scams
Financial scams are far too common. Learn how to spot them ahead and seek redress if you’re a victim.
6. Investing
Explore the concepts and principles you must understand to make informed investing decisions.
Retirement
7. Estate Planning
The sooner you start thinking about estate planning, the better.
- What Is Estate Planning? — Basics & a Checklist for Costs, Tools, Probates, & Taxes. Think of this as Estate Planning 101 — everything first-timers need to know about the daunting world of estate planning.
- How to Write & Update a Will — The Process You Need to Know. Learn how to express your final wishes in a legally binding document and update that document as your personal circumstances change.
- What Is a Trust Fund? — How It Works, Types, & How to Set One Up. “Trust fund” is often seen as a pejorative term, but guaranteeing income to an entitled kid is far from its only function.
- What Is Probate? — Definition, Process, & How to Avoid It. Learn how a court of law handles your legal and financial matters after your death.
- Estate & Inheritance Tax — Threshold, Rates & Calculating How Much You Owe. Are you liable for estate tax? Most Americans aren’t, but other taxes may apply to assets distributed from deceased taxpayers’ estates.
- What Is the Gift Tax? — IRS Rules, Rate, & Maximum Exclusion Limit. Learn about the gift tax, which may limit what you’re able to distribute to your heirs before and after your death.
Final Word
It bears repeating: Financial literacy is a journey, not a jaunt. These articles are only a portion of the content we offer on various financial topics.
The best thing you can do for your personal financial literacy is to become a voracious, educated consumer of finance-related content. As you increase your information consumption, use your existing value system, personal circumstances, and life goals to inform your opinions and objectives.
Keep reading to become a smarter, more confident consumer.