My Top Ten Financial Literacy Takeaways by Sarabetje Fletcher

1. It is important to keep all of your paychecks and see how much tax is taken out to make sure the amount taken out is right.

On each check there is a net pay, which is all the money you made after taxes have been taken out, sometimes the amount of taxes that have been taken out of your paycheck is wrong. If you end up withholding too much, your tax deduction will go up and your net pay will go down, but you will get a tax refund after you file your return. If you end up withholding too little, the opposite of what is stated above will happen.

2. It is important to have a budget.

A budget is a plan for saving and spending your money. It is important to have one because it helps you live within your means, so you don’t spend all of your money, and end up not having enough money leftover to live. It ensures you will always have enough money for the things you need and that are important to you. Budgeting can also help you stay out of debt or help you work your way out of debt.

3. You should keep a log of your spending.

It is important to write down what you have been spending your money on. You may think you’re only spending a little amount of money on your hobbies, groceries, transportation, etc., but you won’t really know until you log it all. Logging your spending helps you realize what you’ve been spending too much money on, and where all your money is going.

4. You should have insurance on almost everything.

It is important to have insurance because insurance makes the cost of things much lower. If you had to get a major surgery, but you had insurance, then the insurance company would pay for a portion of the cost of your surgery. If you got into a car accident, but you had car insurance, the car insurance company would pay for a portion of the damage.

5. It is important that your first savings goal is an emergency fund.

Emergency funds are very important because they are funds full of money that has been set aside to cover any of life’s unexpected events. Emergency money also allows you to live for a few months in case you lose your job or in case something unexpected occurs that costs a lot of money.

6. You should pay as much of your credit card bill as you can before the deadline.

It is important that you try to pay at least the minimum of a credit card bill before the deadline because if you don’t pay any of your credit card bill, then there will be a fee. But if you only pay the minimum, the rest of the money that you have to pay, will increase and add onto your next credit card bill.

7. You cannot necessarily rely on state-funded support in retirement.

It is necessary to be saving money for retirement and to not rely on state-funded support for retirement because it is believed that Social Security funds will run out by 2033. There will not be enough money given to us to actually support us when we retire. We should save money, starting as soon as possible.

8. When it comes to investing in the stock market, it is important that you do your research.

It is important that you research what the company’s sales and profit are like and what is happening with the company right now. Your stock is always worth the market value, and there is no guarantee that you will get back the money you paid, especially in a short term. Researching the stock market helps you understand which company is most profitable.

9. As you get older, it is a good idea to put less of your money into bonds, and more of your money into stocks.

An important strategy to make sure you are making more money as retirement is coming closer is to balance risk with age. Bonds add stability and reduce risk to an investment portfolio, which is needed when retirement is getting closer.

10. It is important that your financial adviser is a fiduciary.

It is important that you make sure you financial adviser is a fiduciary. A fiduciary provides protection for individuals or businesses that enter into various types of legal and financial contracts with others. Without being a fiduciary, there is nothing preventing your financial advisor from unfairly benefiting from a business relationship at the expense of your financial welfare.

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