With financial literacy, you can acquire the knowledge and real-life skills that will enable you to make informed and better decisions with your money. Having financial literacy is crucial for making progress and achieving success in life. Having financial literacy is crucial for making progress and achieving success in life.
With that said, if you are looking for improvement in your personal and financial life, you are essentially looking for financial freedom and independence. Here are some effective tips that can help you establish financial literacy and confidence.
Understanding The Different Bank Accounts
As an adult, the first step towards gaining financial independence is understanding the various types of bank accounts that you might want to open. Typically, you will be starting with three primary types of bank accounts. We are referring to the savings account, the checking account, and the high-yield savings account.
Let us explore the various bank accounts one after the other.
Savings Account
This account is essentially an interest-bearing account where you deposit money while paying a low interest rate. The primary reason for the savings account being a popular option for many comes down to two aspects: reliability and safety. With the savings account, you can leverage a great option for saving money and accessing money for your short-term needs. However, it is important to mention here that you will have some limitations regarding the amount that you can take out from your savings account.
Nonetheless, a savings account is the best option for building an emergency fund.
Checking Account
With a checking account, you can make withdrawals and deposits. Compared to a savings account, the checking account is very liquid, which means that you can make many withdrawals each month. However, you might earn little to no interest with a checking account. With a checking account, you can deposit the money at ATMs and banks.
High-yield Savings Account
When it comes to high-yield savings accounts, you get to leverage a much higher rate of interest than the ordinary savings account. Also, with a high-yield savings account, you are typically required to make bigger initial deposits, which come with higher fees. If you’re unsure about which type of bank account to go for, if this is your first time opening a bank account, then we recommend joining the financial literacy program first, and also talking to an expert financial advisor who can give you the best recommendations.
Leverage a Budget to Control Your Finances
You can boost your financial literacy and confidence by managing your money in a way that creates and sticks to a realistic budget. If you’re new to budgeting, there is a high chance that you might think of it in terms of restrictions and taking away your financial independence. However, the truth is the other way around. Effective budgeting will allow you to track all of your incoming and outgoing money, which will further help you determine the areas where you can cut costs and save more money.
Gain Financial Literacy with Intuit
You can leverage the financial software Intuit to gain financial literacy education through the various programs that it offers. The various programs offer you all the essential resources and curriculum that you need to learn the essentials of real-life financial literacy applications, including effective budgeting, understanding taxes, and managing debt.
