5 ways financial literacy impacts life beyond the classroom

As an education member, you’re more than familiar with the subject of financial literacy.

After all, it’s woven into the curriculum you teach—not to mention the fact there’s a whole month (November) dedicated to it every year.

However, the importance of financial literacy goes well beyond lesson plans or taking one month out of the year to read a few articles and be done with it. Every dollar you spend, save, invest, charge or borrow is dependent upon certain decisions that you make. Being financially literate enables you to responsibly make those decisions so you can successfully navigate through every aspect of life.

In fact, here are 5 ways how being financially literate can help you:

1. Increases your confidence to make financial decisions.

When you are unaware of your financial options, you’re more likely to rely on others to make decisions for you. That might be okay when choosing a destination for winter, spring, or summer break. However, when it comes to the big financial decisions in life (such as choosing a mortgage lender, saving for a 4 over 5, or paying down debt)—knowing about all of your options gives you the confidence to choose what’s right for you.

2. Gives you the power to negotiate.

From interest rates on the money you borrow to the goals you have for the money you invest, financial literacy gives you the ability to understand all of your options. That knowledge will put you in a better position to clearly articulate your expectations with lenders and financial advisors, so you can then feel confident about choosing the right option that best suits your needs.

3. Heightens your ability to protect yourself.

With identity theft and online scams on the rise, the more you stay in the know, the better prepared you’ll be to protect yourself from falling prey to financial fraud.

Protecting your money 101: financial scams

4. Boosts your chances of achieving your goals.

It’s one thing to have financial goals. Having a better understanding of what it takes to realize those goals, on the other hand, can be the difference when it comes to making your financial dreams a reality.

5. Provides you with an overall better quality of life.

When you understand your finances, you stress less and achieve more. It’s not just a philosophy—but also a fact. According to a national study conducted by the Canadian Bankers Association, the most financially-knowledgeable Canadians also happen to be amongst the highest earning. That same study also concluded that those with a financial advisor also happened to be more financially literate. Coincidence? We think not.

Of course when it comes to financial literacy, nobody educates educators better than Educators.

Since 1975, we’ve been providing education members with the educator-specific resources they need to gain a better understanding of their finances—because for us, there’s nothing better in the world than helping to transform financial dreams into reality.

Have one of our financial specialists contact you about making your financial goals a reality.

And be sure to browse The Learning Centre for a wide range of financial literacy-enhancing topics.

Sources:
https://cba.ca/Assets/CBA/Documents/Files/Article%20Category/PDF/misc_abacus_millennial-polling-report3_en.pdf