3 things to think about...

"I'm glad I learned about parallelograms instead of how to do taxes. It's really come in handy this parallelogram season." You may have come across this classic meme around tax time. It really hits home with me — and I'm not alone.  I consider myself to be a well-educated person. But there are a few things that I have learned, just over the past 6 months that is in the category of "You don't know what you don't know... until you don't know it." Let me explain. While my parents have done a great job in instilling in us girls the importance of money, how to budget and how to manage money GOD's way, there are still a few things that I'm sure they wished they had done better. I'm sure they wish they would have started a college savings plan for us when we were born. Or maybe even just investing somehow in our future that we would be in a better position. I know I have the same regrets when it comes to my older children... and there is still time for me (us) to do something better for our youngest.

So I'm sure you can imagine my surprise when I started learning about financial literacy, just a few months ago, that I actually really didn't know a whole lot about it. Granted, Brandon and I had taken a financial course... even twice, but for us it felt out of reach and unhelpful... even condescending and impossible. We still have had our struggles in money management, and for something so vital to our success in this world, it's a wonder that money management remains shrouded in mystery for so many of us. 

As I am walking into a broader, more robust picture of financial literacy, I am raising awareness of the need to have financial literacy programs. Here are 3 things I want to introduce.

1. Money is an emotional and taboo subject 

There are certain essential life skills that many of us aren't taught in school, and effective money management is one of them. Instead, we often learn through trial and error. While some schools include courses on home economics or civics, financial literacy is rarely part of the curriculum. Maybe you learned to bake a pie, make a pillow in Family Studies, or even build a bookshelf in 4H, but most of money lessons came from personal experience or watching our parents. I had a friend say to me just the other day, that as recent as a 2018 graduate, her daughter did not know how to write a check.

There's a stigma attached to not knowing something that everyone is expected to know. Because financial education isn't typically taught in schools, many people feel ashamed to ask for help. The complexity of financial terminology and the lack of clear communication about financial services can lead to misconceptions and poor financial habits.

There are numerous free programs available that focus on areas such as debt reduction, building savings, understanding your financial rights, and banking basics. If you want to increase your financial literacy, regardless of your current knowledge level, let's connect. I have an educational programs and materials that can help you succeed.

2. There's good debt and there's bad debt — and they feel very different

Yes, it's true: there's good debt and bad debt. In North America, our financial system relies heavily on credit. A mortgage, if it's within your means, is generally considered good debt. It's a debt you pay off slowly and steadily, boosting your credit and showing creditors that you're reliable. A good credit score opens more doors for you.

Now, let's talk about bad debt. This is the debt we accumulate on credit cards while living beyond our means. Using your credit card to pay bills, buy groceries, etc., is fine as long as you pay it off in full at the end of each month. While this might sound straightforward, many people don't understand this and use their credit cards unwisely. We have been one of those people! Financial literacy education can help shift your perspective on debt and make the mental and emotional journey toward a new mindset on debt.

3. 'Paying yourself first' is a pain-free way to save and invest

I heard this concept just a few months ago and was completely confused on what it even meant. What do you mean, "pay myself first"? I do that all the time when I get a paycheck don't I? No - no you don't. It's another simple yet effective money-management principle I am learning is to pay myself first.

Think of your money as a pie - 50% of your money goes to living. Anything you use that is daily living, or our living expenses. And everything else would go between debt and taxes. Let's look at this example.

When we talk about paying ourselves first - we want to talk about emergency funds, investments, life insurance, long term care, college funds, student loan debts... We want to get our savings piece of the puzzle way bigger and allow ourselves to have some wiggle room.

Money is inherently emotional and a taboo subject in most Western cultures. This stacks the odds against us if we don't start teaching financial literacy in schools and become comfortable discussing such an important topic. As an educator, I will continue to work in and advocate for literacy. Helping adult learners improve their financial literacy has become my passion.