Introduction to Finance

What is Finance?

Finance is the field of study that involves the management of money such as investing, saving, budgeting, borrowing, and lending. Finance can be broken down into 3 main categories: Public Finance, Personal Finance, and Corporate Finance.

Why is learning finance important?

Learning finance is important because it helps you manage money to allow you enough money for your necessities and for the future.

Based on the data collected by the National Foundation for Credit Counseling, it is clear that countless Americans are not financially literate.

• 62% of U.S. adults have carried credit card debt in last 12 months

• More than 1 in 4 (27%) admit they do not pay all of their bills on time.

• 56% of U.S. adults who have tried to purchase a home have faced barriers to doing so because of factors like the increase of house prices, and existing debts.

Thus, learning finance is fundamental to improve your quality of life by making better money decisions.

Are you financially literate?

Financially literate people:

• Make plans on achieving their goals.

• Learn to keep some money for emergency use.

• Know their boundary on borrowing money.

• Monitor their spending patterns.

• Understands loans, credit cards, and debt.

• Aware of how much they are spending compared to how much they are spending.

• Plans for the future.

• Understands how much tax they have.

• Are well informed about what they are spending money on.

• Research before investing and shopping.

How can you become financially literate?

You can become financially literate by improving your math skills, read books and magazines, take a financial literacy course, use financial tools, listen to money podcasts, trends, and news. Most importantly, this platform is designed for you to become financially literate so stay updated on all resources and blogs that will be posted!