Financial Literacy Tips By: Marlene Dattilo
What is Financial Literacy?
To be financially literate means you have developed a strong understanding of basic financial concepts such as budgeting, saving, and debt. It is important to always work towards becoming more financially literate because it will allow you to get on track to meet your financial goals and to have better control over your day-to-day and month-to-month finances. Part of being financially literate is understanding the potential mistakes or pitfalls that you may come across in your future. If you can identify them before they happen, you will be more likely to avoid the problem. Below are five examples of common money mistakes.
1. Not Having a Budget
Without a budget, you will never be able to track where you spend your money or why you spend it. Once you have a clear budget, it is easier to see where you might be able to cut back your spending.
2. Making Rushed Decisions
Never rush your financial decisions. You should also never let anybody else make you feel rushed when it comes to your finances. Waiting 24 hours before any major purchase is a good rule of thumb to follow.
3. Missing Payments
Missing a payment can lead to higher interest rates and late penalty fees. It will most likely also have a negative effect on your credit score. Even if you can only afford the minimum, try not to miss any of your payments.
4. Not Paying Attention to Interest Rates
Interest rates change, especially with credit cards. For example, your introductory rate will end. Always check your monthly statement to see if there are any changes. As mentioned above, something like missing your payment can increase your interest rates.
5. Carrying Too Much Credit Card Debt
It is possible that you may desperately need to rely on your credit card in an emergency. If you have too much debt on your card already, it could be declined in the moment when you need it the most. Be sure to keep an eye on this so that you do not find yourself stuck in this situation.
Questions? Contact Marlene Dattilo at (585) 485-0194 or firstname.lastname@example.org
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