Financial Literacy
What Financial Literacy means:
The term financial literacy may seem like a complicated word that only people in the world of Finance would ever use. But in reality, it is the designation of a skill that the average person will need at some point in their life.
Financial Literacy refers to the ability to make financial choices after carefully and thoroughly thinking about the cost as well as the result of said decision, in order to manage and generate more wealth for yourself.
To put it more simply, Financial Literacy means being capable of making well thought out financial decisions. Without proper Financial Literacy, your financial endeavors will be lacking the appropriate foothold for success.
The cost of not being Financially Literate:
Financial Illiteracy across America is not a new phenomenon, especially among Black business owners and nor is it just a problem for the individual. One study finds that nearly half of Americans don’t believe that they will have enough money to retire or afford an unexpected 500-dollar expense. And on a national level, this costs the entire economy, the average American an incredible amount of money. The average Black American will lose even more money compared to the national average. That is what Financial Literacy addresses. Because we can combat this issue at least on an individual level, if each of us can become more knowledgeable about our own financial affairs and taking actions regarding this issue is crucial for the long-term development of Black businesses and the Black community.
How Financial Literacy can be of use:
Financial Literacy is a skill that can make us more well-equipped to handle our investments, taking loans, loan payments and large purchases. Increased Financial Literacy in the Black community will create more buying and alleviate many of the economic struggles for Black business owners.
For example, when you are considering buying a piece of property, it’s important to have the necessary tools at hand to gauge how much your budget can be, check if any of the options is reasonable for your budget etc.
Or, when making an investment, you need to be aware of the details of the companies or portfolio of companies you will be investing in.
These are just some of the examples of how being well-equipped to handle financial decisions and obstacles can be a direct result of Financial Literacy.
After the death of George Floyd, the subsequent protests and the BlackLivesMatter movement, this is now more important than ever for making the Black community and Black business owners more affluent.
Expert opinion on Financial Literacy:
According to Damieon Lovett, Campus Director and Overseer of the Financial Education Program at the University of South Florida:
“Financial literacy is important because it’s pretty much one of the things that will encompass just about every aspect of a person’s life”
He went on to add that in our capitalist economy, many private issues often begin as a result of not making smart choices and that making wiser choices will improve the personal lives of many.
Latoya Goree, Director of the Office of Financial Literacy at UMKC, another expert on Financial Literacy had this to say:
“Financial literacy is important because it allows an individual to understand and maximize whatever level of income they earn. It helps people transform their lives. That’s why we do it, and that’s why it’s important.”
And, Travis Cook, Education Specialist of the Utah State Board of Education was also quoted saying:
“My hope is that with increased financial capability, more of us will be able to transition from surviving to thriving. Resulting in sufficient resources to support our own ever-changing, highly subjective pursuit of ‘happiness’.”
It appears that the general consensus among prominent leaders in this field is that Financial Literacy can be a very important skill to have no matter who you are and it will a major factor in your success and stability.
This is where Shoponyx comes in. Shoponyx is the perfect example of a place where you can make financial decisions that benefit you and the Black community because Shoponyx is a place where you can shop Black confidently.