Educating Yourself about Money Matters
Unfortunately, people don't always learn the basics of personal finance from their parents, and the current education system doesn't adequately teach them, either. In fact, the Jump$tart Coalition for Personal Financial Literacy, whose mission is to improve the financial literacy of young adults, says that the average high school graduate lacks fundamental money management skills and a basic understanding of earning, spending, and saving money. It's no wonder that most people make financial mistakes in their twenties and thirties that they pay for over the next decade or longer. You can avoid these mistakes by educating yourself about basic money matters and practicing good money management.
Where to Go for Help
Where do you start? Books like this one are one source. Check your local bookstore or surf an online bookstore such as Amazon.com, searching for keywords like “personal finance” or “money management.”
Magazines are another source. The bookstands are filled with financial magazines such as
The less financially savvy you are, the more vulnerable you are to being taken advantage of or falling victim to financial scams. Not everything you read is true, so it's important to use reputable sources of information and practice some healthy skepticism if something sounds too good to be true.
The Internet is a source of nearly limitless information, some of it excellent. Try to stick with well-known sites rather than the folksy “this is how I did it” personal sites. Although the latter can have useful information on them, you could be steered in the wrong direction with some questionable advice or information. On the other hand, the personal sites about frugal living, downsizing, and cutting costs can be great for giving you ideas on how to do the same. (See Appendix B for a list of recommended Web sites.)
It's All in the Attitude
Personal finance doesn't deserve the bad rap of being boring or complicated, which it sometimes gets, so don't feel a sense of dread about it or be intimidated by the fact that it involves numbers or terms you don't understand. Develop a positive attitude and consider your time and effort as an investment. You can learn everything you need to know, and you'll find it empowering as you learn to take control of your money and your future. With this control, you can enjoy more freedom, expanded options, and a higher standard of living. How boring is that?
