Knowing the basics of money and finance can give you a big advantage. Find out how a little learning goes a long way toward your financial well-being.
Small decisions, made over and over again, can get big results.
It’s more important than ever to take control when it comes to your financial life. Your job, where you live, when you can retire: All these things can be improved by making smart financial decisions along the way.
However, making those decisions doesn’t always come naturally. You have to learn from mentors, peers, family and even your own mistakes.
A surprising number of adults in the U.S. lack financial proficiency. America is the richest country in the world, and yet:
Only half of the states in America require high school students to take a personal finance class before graduating.
63% of Americans live paycheck to paycheck.
73% of American adults rank finances as their primary stressor.
Only 25% of American teens have confidence in their personal finance knowledge.
Feeling financially confident, is proven to have positive effects on your mental health and longevity. It’s not just about the money—it’s about well-being and the freedom to live your best life.
Elements of financial wellness
So what does financial wellness mean? Basically, it’s having smart money habits that help you reach your financial goals.
Think of what matters today when it comes to money: your budget, your bills, your bank account and how you want to live your life. Then think of what matters in the near-term. Perhaps you want to get a new car or move to a new city. Smart planning and budgeting make achieving goals like these so much easier.
Finally, think of your money in the long term. Maybe you want to retire early or start your own business. Good financial habits can help make this possible and change your life for the better.
With Dow Jones Smart Money, we’re not trying to cover every single aspect of financial wellness. We just want to take key topics and highlight some important facts and concepts that make you say “I wish I’d known that earlier!” If you learn about these foundations, you’ll have a big advantage in the long run.
