What is financial literacy and where is the border between literacy and illiteracy. Learning the basics of financial literacy

Discuss financial issues honestly and openly, without deviating from such conversations. Typically, one spouse is responsible for finances, but that doesn't mean they have to bear the burden of financial planning alone. Both spouses should know how money is spent so they can share responsibility for financial matters. Of course, control doesn't mean that you or your spouse have to account for every penny you spend. The main thing is that both of you are aware of the family's financial situation by participating in decisions about large expenses.

Find out the difference between good and bad credit. Debt obligations are different, and you need to look at the following points to determine the quality of loans:

1. Credit is considered good if it creates value that contributes to the growth of wealth. A good example is a mortgage. As you pay off the loan, the home's value increases and you create real estate assets for yourself. Another example is a student loan. In exchange for a loan, a person receives a diploma and education that will be useful in his life.
2. A sign of bad credit is an increase in debt obligations while simultaneously reducing the price of the purchased item. A typical example is credit card payments. The purchase quickly depreciates or is eaten up, and the interest on debt obligations increases. Bad loans include loans for the purchase of cars, since the value of the car falls faster than the loan is repaid.

Avoid the most common fund management mistakes. Income must exceed expenses. As a rule, this balance is upset by ordinary situations when a frivolous or spontaneous decision on expenses is made, depending on the person himself.

1. Life on credit. A person breaks away from living within his means when he begins to make purchases using a credit card or loans to purchase expensive items. This is how bad credit begins to accumulate, and the person gradually digs a hole of debt, from which he will then not be able to get out.
2. Lack of financial goals. This is a very important point. If a person has no need to save, the motivation to control financial flows is much less. A financial goal determines the future and also disciplines the present to achieve what you want.
3. Don't call luxuries necessities.

Take training in personal budget management. In any community there are organizations whose activities are aimed at increasing financial literacy. The form of assistance can be different - articles, lectures or special courses.

• Ask about training programs at banks and credit unions, non-profit organizations, courses for company employees, and religious communities.
• Be sure to check with your local college/university to see if they offer courses in personal finance or family economics.

Learn to identify sources of false information (including information from the Internet - the same basic rules apply here).

1. Sources of reliable information include colleges and universities, local/regional governments, prominent national organizations (eg, National Cancer Research Society), and industry journals and peer-reviewed publications. Trusted organizations' websites often end in .gov, .org, or .edu. These domains typically point to government, non-profit, and educational organizations.
2. Unreliable sources include self-proclaimed experts using blogs, personal web pages, social networks, online forums, and websites of unknown organizations. In general, use a double filter: information is unreliable if it is published in an unknown publication and/or the author is not an expert.

Keep learning. There is always something new to learn in personal finance. It is also very good to pass on the acquired knowledge to children and other descendants. You can find out how to teach children finances on the website of the tax administration or even at the Ministry of Finance. These organizations have even developed simulation games for children to teach about financial issues. Visit page

Good afternoon, readers of our blog! Blog author Ruslan Miftakhov is in touch. Now people are especially interested in the question of financial literacy, where to start. Why do some people with an average income have no problems, while others have difficulty making ends meet?

Want to learn ways to develop financial literacy? Then check out our article.

There are many materials for schoolchildren and adults that should help improve financial literacy. But besides this, there are various trainers who promise to teach you everything from scratch.

How they actually work:

1. Collect materials.
2. They systematize them a little, take the necessary passages.
3. Seasoned with a pinch of your own dubious experience.
4. They sell tickets for the course for 500-3000 rubles.

Yes, it cannot be denied that among all the “trainers” there are really smart people who can teach you something useful, but they are in the minority. In most cases, you will simply be given slightly revised information that can be found in books or articles on the Internet.

Therefore, remember one simple truth: “No one will teach you to think with your own head.” It is better to study the information yourself, systematize it and draw conclusions.

Minimum financial literacy

The basis of financial literacy includes several points:

• approximate idea of ​​fraud;
• counting income and expenses;
• formation of savings;
• the right investment.

Let's look at the main points for better understanding.

Frauds - important to know about them!

A good place to start developing financial literacy is by studying common fraud schemes. The list of them is huge, criminals are constantly coming up with new ways to take money from the population.

Let's look at some common methods:

A call or message from a relative asking to transfer money. The reasons may be different - the car broke down, was taken to the police, etc. Be sure to contact the person to clarify the situation.

Another scheme is gaining popularity on social networks – asking for a loan. A friend writes to you, wanting to borrow 1-2 thousand rubles. But later you will find out that the page was hacked and the money went to scammers. There is only one way to deal with it - personally contact a friend by phone.

A very common method is to obtain codes to confirm the operation. You are allegedly contacted by an employee of a bank or mobile operator. In various ways, he lures the password from the phone in order to transfer money to another account.

Never share secret codes, including card numbers, with anyone.

Pyramids and pseudo-investments. HYIPs have been alive for many years and projects are constantly updated. I already wrote about MMM and how my relatives fell for scammers.

To learn how to resist scammers and not just part with your money, start treating everything with distrust. Be sure to check the information, then you will not become a victim of another deception scheme.

Counting expenses and income

Today there are many applications that allow you to record expenses and income, and quickly find out how much money is left from your salary. I've been using the service for several years now easyfinance to control all wallets and financial movements.

If funds are stored in a bank account and all transactions are carried out through a card, then in your personal account you can study the data of interest.

Attachments

You can invest the funds you have on your own.

There are several ways to invest:

1. The simplest option is . The profitability is not so high, but the reliability of the deposit is guaranteed.
2. Investing in various projects. But it is important to carefully study all the information, find out whether the solution is viable and whether you can make money from it. Here is an example of one of mine.
3. Investment in new buildings. The scheme is simple - at an early stage of construction an apartment is purchased, after delivery its price increases by 10-30 percent. Real estate is being resold.
4. Purchase of company assets. But you need to create a portfolio of various securities in order to compensate for losses on some positions with income on others. For example, different companies.

You can find a lot of tips in various videos and materials. The information has been systematized, we offer the main points for familiarization:

1. Study more materials, you can read books. It is important to gradually accumulate theoretical knowledge.
2. Learn to save and cut expenses. Give up unnecessary purchases, things that are not needed at the moment.
3. Every month, save 10-30% of your salary, or more. This way you will have savings that will be useful in various situations.
4. It is better to put the accumulated funds into a replenishable deposit in the bank so that interest continues to accrue on them.
5. Try to increase your income in the future; for this you need to grow professionally.
6. Don't skimp on paid training courses to improve your skills. Investing in yourself will allow you to earn more in the future.
7. Avoid loans almost completely. Want to buy a brand new iPhone, but don't have the money? If you can't afford an item, then never go into debt for another trinket. It's better to find a simpler device.

What can you take out a loan for?

Your productivity and professional level will begin to increase, and in the future you will be able to increase your income.

Another example came to mind from life, when we went for an ultrasound to another city with a second child in our tummy, since there was no way to check if everything was okay with us.

Therefore, we were sent to a neighboring city, where we were checked with modern equipment, which cost 40 million rubles, borrowed on credit (the doctor let it slip). There were queues for a week and even months in advance.

This is an example of proper debt; over time, it will all pay off and will only bring profit.

You can attend online seminars (webinars) to get more information about financial literacy. The main advice is to spend money wisely, do not spend money on things that are not particularly necessary.

Be sure to build savings to have an emergency fund to ensure financial stability.

Take the time to watch a cartoon about financial literacy instead of watching all that nonsense on TV.

Also subscribe to our telegram channel. Until next time, we look forward to seeing you again on the pages of our blog!

Best regards, Ruslan Miftakhov

Financial literacy is what distinguishes a rich person from a poor one. Statistics say if a financially literate person does not have money, he will soon have it. And vice versa, If a financially illiterate person has money, he will soon lose it!

Why this happens and how to improve your financial literacy - read further in this article.

What is financial literacy and where is the border between literacy and illiteracy.

In simple terms, then financial literacy – is a sufficient level of knowledge and skill that allows you to make informed and effective decisions in various areas of personal financial management, such as savings, investments, real estate, insurance, tax and pension planning. Financial literacy also includes in-depth knowledge of such financial concepts as personal financial planning, compound interest, the mechanisms of credit instruments, effective savings methods, consumer rights, as well as an understanding of the relationships between various economic processes and events.

Lack of financial literacy can lead to unwise financial decisions that can have an adverse impact on a person's financial health and even send them into debt. Therefore, in developed countries, governments create special educational resources for people who want to become financially literate.

Modern research shows that financially literate people are more effective and successful in life, regardless of which country, in what positions and in what field they work. It is safe to say that knowledge of the basics of financial literacy helps improve the quality of life and has a positive impact on people’s well-being. That is why, financial literacy education affects everyone personally! I encourage all readers to take some time to improve their financial literacy.

Unfortunately, historically, the issue of financial literacy of the population in Russia has never received due attention. In the Russian Empire there was no other institution for teaching financial literacy other than the family. Therefore, wealth along with knowledge was passed down from generation to generation for centuries. During the Soviet Union, there was also no need to teach ordinary people financial literacy - salaries and pensions were set and guaranteed by the state, there was no risk of loss of income, and the number of financial instruments legally available to the people could be counted on one hand. Along with the advent of a market economy in Russia, a need arose for every market participant, every person, to understand economic processes.

The need to educate the population in financial literacy has become obvious at the state level only recently. Before this, many people managed to step on the rake of financial illiteracy and lose their savings in various financial pyramids, during the Russian default in 1998, due to the global financial crises in 2000 and 2008.

Nevertheless, the financial literacy of the majority of Russians and residents of post-Soviet countries still remains at an extremely low level, because there are catastrophically few qualified specialists capable of teaching people the basics of financial literacy. Fortunately, now on the Internet you can find enough information in the form of books, articles and publications and independently improve your financial literacy. Remember your well-being directly depends on the level of your financial literacy.

It's never too late to start studying in this direction. There are 5 simple ways to improve financial literacy available to everyone. Here they are:

1. Read special books dedicated to the basics and principles of financial literacy. For beginners, I recommend the following books as mandatory reading:

George S. Clason - "The Richest Man in Babylon."
Vladimir Savenok – “How to draw up a personal financial plan. The path to financial independence"
Vladimir Savenok – “How to implement a personal financial plan, or How much money is needed for happiness”

2. Read feature articles– many financial advisors, including yours truly, have their own blogs in which they share their “secret knowledge” about personal finance with a wide range of readers. You can read already published articles on my blog, and also subscribe to receive new articles by e-mail. This method of increasing financial literacy is good because it does not require much of your time. Finding 5-10 minutes during the day to study one article is not difficult even for the busiest people.

3. Play games that develop financial literacy.

There are various business simulation games, as well as investment activity simulators, which allow you to master the basics of personal finance and investment in an easy game form. This method of developing financial literacy is one of the most effective because it involves the practical application of skills and makes it possible to see and feel the results of their use almost immediately. Today the most famous and popular business simulator is the game “ Cash flow" There are both desktop and computer versions of the game. There are other online games that develop “Cash Flow” ideas, for example the game CashGO.ru. Among the investment simulators, we can highlight the service www.chartgame.com, which allows you to hone your investing and speculating skills on real historical charts of American stocks and compare the results of your trading with a passive investment strategy “buy and hold”.

Games allow you to test various assumptions and strategies in practice, while you can see the results of your actions almost immediately, and mistakes and failures do not affect your financial well-being. Therefore, developing financial literacy through games is a fairly effective and enjoyable way to teach financial literacy, which is suitable for both adults and children.

4. Attend seminars, webinars and courses to improve your financial literacy.

In this case, you need to pay attention to which institution or company conducts financial literacy courses. For example, similar-named seminars from some brokerages and banks have the real purpose of attracting you as a client and selling you their specific products, so they should be treated with some caution. But financial literacy courses organized by universities and independent financial advisors can be extremely useful. Especially if you don’t just listen to them, but start applying the tips and recommendations in your daily life.

5. Develop good financial habits.

For many people, developing just four healthy financial habits may be enough to change their financial situation for the better. These are 4 good habits:

Avoid debt and credit - live within your means
Start keeping track of your income and expenses. Plan your expenses for a month in advance.
Always immediately after receiving income, save and invest at least 10% of the amount received. And from the remaining money, pay for your usual expenses, starting with the most important ones.
Be sure to consult with your financial advisor before investing in any project or investment vehicle.

I recommend trying this method of increasing financial literacy for yourself. It is not as simple as all the previous ones, as it requires more real effort from you and changes in your usual lifestyle. But you will immediately observe the effect of it: your well-being will increase along with the level of your financial literacy.

What skills does a financially literate person have?

1. Maintains a balance between consumption and investment.

Living well today while saving and investing enough money to ensure a comfortable standard of living in the future is no easy task. If you don’t save anything for the future, then a miserable, miserable pension from the state awaits you. If you save and invest to the maximum, and now live from hand to mouth “on bread and water”, you run the risk of not living to see that very “bright future” or paying too high a price for it - in the form of a hated past. Therefore, it is very important to maintain the “golden mean”, which will allow you to live comfortably now and no worse in the future.

2. Manages personal finances effectively. Plans income and expenses in advance.

Nowadays, there are various services for tracking income and expenses, for example Easyfinance, Homemoney, Drebedengi, Zenmoney etc. All of them allow you to literally enter information about expenses and income from your phone screen in just a couple of minutes a day. If you do not want to trust this kind of information to various third-party services, you can use regular Excel. You can use a template file for maintaining a personal or family budget.

It is important to plan expenses for the next month, as well as carry out analysis and compare the plan with the actual period. 30 minutes a month devoted to planning and analyzing your personal budget allows you to find holes in the budget, determine where exactly the money is flowing, and make the right decisions to increase the amount of money in your wallet.

3. Sets clear financial goals and successfully achieves them.

Who among us doesn’t like to dream about an expensive sports car, a house on the seashore, a yacht or financial independence. A goal differs from a dream in that it has specific deadlines for implementation, cost, priority and a lot of other parameters.

For example, “I want a house by the sea” is dream, A " buy a two-story house with an area of ​​150 sq. meters with a garage and a swimming pool, two blocks from the sea on the southern coast of Spain, worth 250 thousand euros in 15 years“is a very specific financial goal. And if we start saving monthly right now and investing in reliable instruments on the stock market for 598 euros with a very moderate average return of 10% per annum, then in exactly 15 years we will achieve our goal and buy our house for 250 thousand euros.

4. Plans his future 10-20-50 years in advance and follows his personal financial plan

If you don't have a plan to become rich, then most likely you are planning to be poor. You just don’t realize it.” (R. Kiyosaki)

Personal financial plan (LPP) is your best friend and assistant in realizing your financial goals. Those people who follow a personal financial plan are guaranteed to achieve financial well-being. Work with physical therapy is carried out in several stages:

Analysis and assessment of the current situation: Income and expenses, Assets and Liabilities.
Setting goals and determining specific actions for their implementation.
Selecting the right financial instruments for each purpose
Implementation of the plan.
Annual analysis of progress towards goals and adjustment of the plan.

5. Uses various financial instruments to achieve various goals.

Nowadays, there are hundreds of different financial instruments available to a wide range of people. All of them have different properties and parameters, such as profitability, reliability, stability, liquidity, recommended investment period, entry threshold, etc.

Obviously, it will not be possible to solve short-term financial problems with the help of long-term instruments - for example, if you know that you will need money within 3 months, you should not rush to buy an apartment or invest it in shares of a particular company - for short-term investment it is better to use bank deposits because they have maximum liquidity.

6. Has several sources of income.

Having just one source of income these days is very dangerous, especially if not only you, but also your loved ones depend on this source. In this case, you are putting yourself and your family at too much risk. When a person has several different sources of income, his life is much more comfortable. The feeling of stability, security and confidence in the future of your family is priceless. The benefits of creating new sources of income are also evidenced by the fact that as the number of different sources increases, the amount of money coming to you regularly increases, and therefore the standard of living and well-being increases. Financially literate people try to create 1 new source of income every year.

Now you know all 6 secret skills of financially literate people, which means you can implement them into your life and quickly improve your financial literacy.