Why is it so important to be financially literate?

My Next Move

You can achieve so much more when you’re literate about your financial life. Are you asking yourself, “What could be more boring than financial literacy?” Michael Liersch tells us in this episode of My Next Move that it’s normal for people not to understand financial concepts. But having basic knowledge of foundational elements of financial literacy is relevant to all human beings—regardless of wealth level or where you live. For example, does exponential growth bias seem difficult to understand? That’s how you perceive investments growing over time; which can help make sure you’re borrowing, saving and investing in the most productive way. And what about risk? A lot of people also don’t understand risk: whether some is required for their money to achieve all they want. Or whether they have the ability to take any risk at all. Michael encourages us to talk to a financial advisor, people we trust, our families, or even ask Google. After all, financial literacy is really something worth focusing on.