6 ways to increase your financial literacy 

You might have come across the term financial literacy before, but maybe you're not entirely sure what it means. It's so important — more than you might realise. Financial literacy is vital in shaping your financial future. It influences your lifelong relationship with money, regardless of how much your salary is.

In this article, we'll explain financial literacy and its importance. We'll also help you increase your own financial literacy. So, without further ado, let's dive right in!

First, what is financial literacy?

Financial literacy is having a solid understanding of financial concepts and being able to apply this knowledge to make informed and sound financial decisions. It encompasses many money-related topics, including saving, budgeting, banking, investing, debt management, and safeguarding your finances. 

Second, why is financial literacy important?

Imagine owning a smartwatch but only knowing how to use it to tell the time. You wouldn't be making the most of its features, right? Well, the same goes for money. If you only know how to spend it, you're missing out. That's why financial literacy is crucial. 

Being financially aware helps us handle money more effectively, ensuring we maximise its potential. This, in turn, allows us to achieve financial stability, reach our financial goals, build a solid financial future, and even seize financial opportunities to increase our earnings. 

Third, how to increase your financial literacy?

Unfortunately, schools often don't teach us much about managing money, so it's up to us to learn independently. 

Thankfully, we live in a time when information is abundant, mainly due to the internet. Here are several effective ways you can boost your financial knowledge:

1. Read financial articles

If you're reading this article, you're already headed in the right direction. Many financial blogs on the internet, like ours, cover various topics and provide financial tips that can expand your knowledge and introduce you to new things you may not have known before. From How to make money while you sleep to 5 tips to pay off debt, these blogs offer insights to help you create a budget, find smart saving and investment strategies, and even provide financial guidance for business owners.

2. Stream financial podcasts

Financial podcasts are an excellent alternative if reading isn't your cup of tea or you don't have much time. They allow you to gain financial knowledge while engaging in activities like driving, cooking, or having coffee at work. Simply put on your headphones and dive into the world of finance!

Start making the most of your time by tuning into the Mali wa Maluk podcast by Bank al Etihad. This podcast presents the basics of money and different banking solutions, such as loans and credit cards, in a simple and engaging way. 

3. Sign up for a financial course 

In today's world, you can find a course for just about anything you want to learn! This method will suit you if you prefer a group setting where you can ask questions and discuss with other participants. Some courses even provide certificates and exams to assess your understanding of the topics.

If you're looking to attend a financial course and are between the ages of 18 and 25, look no further than Rise Academy. In this free 2-day boot camp, you'll gain essential budgeting tips, learn how to leverage your skills to generate income, discover how to turn your ideas into a business, and much more! 

4. Read financial books

If you're a book lover, consider swapping out your sci-fi novel for a financial book. There are many books available that cover important financial topics like wealth-building and achieving financial freedom. Roam the aisles of bookstores or simply download digital or audiobooks that you find interesting.

5. Make use of social media platforms

You may have noticed an increasing number of financial experts and influencers using social media platforms like YouTube, Instagram, and TikTok to promote financial literacy and share their personal experiences. Simply click the "Follow" button to get the financial information they put out while scrolling through posts from your friends and favourite restaurant! 

6. Speak to a financial expert

Consulting with a reliable financial expert is essential to enhance your financial knowledge. These experts can address your questions about everyday financial matters or more complex subjects like investments and wealth management. They can also assess your current financial situation and develop a tailored plan to help you stay on course and achieve your financial goals. 

At Bank al Etihad, our wealth management team will work with you to find suitable financial instruments to help you grow and preserve your wealth. 

Finally, regardless of your current level of financial literacy, it's essential to maintain a mindset of continuous learning. Always look for new information, tools, and strategies to improve your financial situation. And remember that every step you take to increase your financial literacy is a step in the right direction.