The Importance of Financial Literacy

Do you have five minutes to test your financial literacy? The Financial Industry Regulatory Authority (FINRA) created a simple, five question quiz to Financial Literacyassess basic financial literacy among adults. The quiz was created as part of a broader study to look at the financial habits of Americans.

Click here to take the quiz now!

If you didn’t do so well, don’t worry, you’re not alone—over 61% of Americans who participated in the study missed three or more questions.

Whether you passed with flying colors or need to refresh your financial know-how, the one thing that the FINRA study did underscore is just how essential financial literacy is. The recent economic crisis made clear the need for better financial education, not just for young children but for adults as well.

So how can you improve your financial literacy?

  1. Read, read, read!

You don’t have crack open your old college economics textbook necessarily, but reading up on the current financial climate can only serve to benefit you. Picking up the financial section of your daily newspaper is a good place to start, or you can check out one of the many financial blogs out there, like the Motley Fool. 

  1. Set financial goals for yourself.

A practical way to start learning more about finance is to set some realistic goals for yourself, and research how best to pursue them. Maybe you want to invest in stocks, or open an IRA. Maybe you’re finally ready to become a homeowner. Whatever your goal, focus on what you need to do to make it happen. As you research, you’ll find yourself expanding your financial knowledge.

  1. If you have a question, ask!

No one ever said understanding finance was easy. But remember, there’s a wealth of information and resources out there. One of these resources is your bank. If you’re struggling with your personal finances or have questions, stop in and have a conversation with your local branch manager or financial advisor. They can help explain things to you in a way you’ll be able to understand.

  1. See what the experts are tweeting about.

Twitter is a great resource that puts expert advice at your fingertips. Follow the financial gurus of the world on Twitter to get instant reactions to economic events, tips, articles and more!

Financial literacy is something that no one can afford to overlook. A basic understanding of personal finance and the economy can go a long way to helping you make sound financial decisions. Start building your healthy financial literacy habits today!

At Community Bank, we’re always here to answer any questions you may have about your financial situation. Stop into any of our convenient branch locations, grab a cup of coffee and some cookies and talk to your branch manager. We’re always ready to lend an ear!

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