The Fundamentals
Best Resources for Improving Financial Literacy
What are the best ways to improve your financial literacy? Whether you live for elaborate investment maneuvers and tax-shielding strategies–or have a hard time distinguishing ETFs from HSAs–it's important to both know the basics and learn the resources that let you make financial decisions with the best information.
If you're already an expert at the art of the short squeeze, you are likely financially literate and should focus on the best investment apps and analysis tools. If money matters aren’t exactly your strong suit, understanding the basics is absolutely essential to achieve major goals such as buying a home or building an adequate retirement fund.
Fortunately, there is no shortage of resources that can help take your financial know-how to a new level. There are any number of tools that are worth your while. Here are some of the places you’ll want to explore first.
KEY TAKEAWAYS
Books and magazines remain a great way to learn about financial topics, although it’s important to find a publication geared toward your learning level.
The last few years have seen a proliferation of personal-finance–oriented podcasts that help you learn about money management skills in your spare time.
Libraries and civic centers will sometimes host presentations from local financial professionals, which are often geared for novice investors.
‘Personal Finance for Dummies’ by Eric Tyson
Sure, opening up a book designed for “dummies” takes some humility, but those who dig through Eric Tyson’s expansive tome are usually rewarded. At more than 400 pages, Tyson covers it all—from budgeting and investing in mutual funds to understanding automobile insurance and navigating the financial aspects of divorce.
Don’t expect a deep dive on every topic, but for a quick introduction to some key concepts, it’s a good place to start.
‘Broke Millennial: Stop Scraping By and Get Your Financial Life Together’ by Erin Lowry
Those first few years after college are often a time when we learn financial lessons the hard way. That needn’t be the case.
Erin Lowry’s 2017 work takes square aim at the pivotal money decisions faced by young adults. Of course, she delves into some of the bread-and-butter stuff, such as how credit scores work and how to budget. However, you’ll also find chapters on assessing your emotional relationship with money and discussing financial issues with your significant other. Best of all, Lowry’s conversational style shows that a finance book can actually be a pretty good read.
‘Why Didn’t They Teach Me This in School?’ by Cary Siegel
If you’re looking for an in-depth explanation of how various financial products work, this probably isn’t the book for you. However, if you want some easily digestible advice on how to make smarter money choices, Cary Siegel’s “Why Didn’t They Teach Me This in School?” is a gem. Crammed inside are 99 basic principles involving standard topics such as budgeting, investing, and housing. Siegel argues, for example, that marrying a financially compatible spouse is a key to happiness and explains why high-deductible health insurance plans are almost invariably the best.
The Bottom Line
Improving your financial literacy is a good way to make sure that you’re building healthy money habits and investing wisely. With the growth of podcasts and other digital media, there are more places than ever to get valuable information.
Source: Best Resources for Improving Financial Literacy