If you’re 29 and you don’t know what budgets, cash flows, investments, interest rates are and how they work, then this is a mildly an embarrassing truth’ which you need to admit. You know that these things exist, but have no idea about their importance.
A study from PricewaterhouseCoopers (an accounting firm) and George Washington University’s Global Financial Literacy Excellence Center reveals, only 24% of people who’re reaching their adulthood have basic knowledge of how money works and 27% are taking financial help from professionals.
Why A Professional Finance Teaching Is A Must?
Let’s meet one of the best American journalists, Ron Lieber, who writes a weekly column “Your Money” for the NY Times. The purpose of this column is to emphasize on personal finance knowledge. In a conversation about basic financial know how he put forward some informative tips.
Prepare Budget Plans
If you left with a zero balance in the month end, then this is the alarming situation. You must prepare your monthly budget. List down all your income and expenses which need to be managed carefully. Don’t spend all! Think and save for a rainy day.
What Is A Credit Score?
A numerical expression which figures out by the financial institutions to decide whether to lend you finance or not. These institutions can be a credit card companies and banks, which calculates credit scores to evaluate risks associated with lending money.
How Much To Save If You Have 401 (K)?
Save for your retirement before its too late. Employers offer their employees with different retirement plans. A 401(k) is a flexible option to adopt. If you have a low income you may save 10% of the amount. The greater the percentage you save, the more you can withdraw.
Open Up A Saving Account
It’s better to open your own personal saving account and deposit money, according to your comfort. The best part of savings account is that it gives you a certain percentage of interest which is credited by the bank on monthly or quarterly or on an annual basis, depending on the bank’s policy.
Are Credit Cards Beneficial Or Just A Liability?
Before you dream to have a credit card it is better to understand what it is and for whom. The use of the card allows you to borrow money from the bank. Remember, credit cards build credit! It is used for the payment of good and services based on a promise of the card holder and is the game of giants. Before owning a card one should know about his or her credit worthiness.