Turns Out What You Don’t Know CAN Hurt You. Financially.
April isn’t just the home of Tax day; It’s Financial Literacy month. And while knowing more about deductions and tax credits can save you money when you file on April 15; Fully understanding all the different types of fees and other hidden costs in your banking and investment accounts can save you money all year long.
Think of all the ways lack of financial education might be costing you money:
- Are you paying unnecessary banking fees for money transfers or low balances because you haven’t researched the best account options for your personal needs?
- Are you paying a higher interest rate than necessary on your credit cards and loans because you haven’t done what’s needed to increase your credit score?
- Are your investment gains being weighed down by hidden fees you could be avoiding?
When you ask questions like this, you can quickly see how today’s financial knowledge is essential to future financial success. Solid financial literacy and money management skills are the best ways to achieve the kind of credit scores that come with lower interest rates and less debt. And this can put more of your money right where you want it: in your pocket and in your savings and retirement accounts.
If You Feel You Have Room to Grow Your Financial Literacy, You’re Not Alone
In recent surveys, people estimated that lack of financial literacy has cost them more than $1300 in one year and as much as $30,000 over a lifetime.
The National Financial Educators Council (NFEC) has conducted a survey each year for six years to find out just how much a national lack of key financial knowledge affects people’s financial situation. According to more than 3,000 people they asked last year, lack of financial literacy could have cost all Americans more than $352 billion just in 2021.
You can see the full 2021 findings on the cost of lack of financial literacy right here: https://www.financialeducatorscouncil.org/financial-illiteracy-costs/
Invest Smarter With Greater Financial Literacy
It’s one thing to understand late fees and low-balance dings to your banks accounts, but what about larger hits to your potential earnings from not understanding the true costs of your investing? While low-balance fees only hurt you until you put money in the account, some investment costs could be compromising your financial wellbeing every day, month and year.
Here are just three important aspects of investment financial literacy:
- The hidden fees inside many investment products
- The three types of advisors and how they each get paid
- The value of objective financial analysis
Iryss can help you learn more about all of them.
Join Iryss to receive a check up on your investments, improve your financial literacy, and get your financial plan on the right track