By Kibet Tobias
Do you really know your relationship with your money? Have you ensured you are financially sound?
Much has been said about money. Several books and articles have been published by financial experts to guide us. And you can easily access them on the internet.
But studies have shown that there is still a large gap in financial literacy among professionals.
It is important to know that being literate with your finances doesn’t only revolve around managing your personal finances and retirement funds.
Whether you are new in the job market or seeking your next step up the career ladder, there are several benefits that building your financial literacy skills can help boost your individual value as you advance your career.
What Is Financial Literacy?
Financial literacy is the knowledge that is necessary for you to make financially responsible decisions that are integral to your everyday life.
It includes understanding how saving accounts work, what using a debit card really means, and how you can avoid debt.
1. Financial literacy can help you develop better spending habits
In past generations, people always used cash to make every single purchase. But today, things have changed. Online shopping has become a major way people buy things.
This has made purchasing things easier but it also means that spending money is much easier and you may find yourself accumulating debt to finance your spending habits.
This is why financial literacy makes you aware of your spending habits. You obviously want to stock your house with flashy stuff, but you also need to decide on what is important and what is not.
You don’t want to frequently make big purchases you can’t really afford. You need to manage your bills by creating budgets that allow saving for short or long-term goals.
Once you are able to better your spending habits, you can begin to invest towards different career goals.
2. It teaches you the value of a savings account
Do you have a savings account?
Saving is the most repeated financial advice out there. It is basic as it sounds but many people are yet to follow through that tip.
You probably know the importance of saving your money, right?
When you start saving, you’ll become more stable and confident in yourself and at work. You will be more inspired and enthusiastic in your everyday workflow.
Having money available in the bank helps you do what you want without stress. Imagine getting fired suddenly when you only relied on a paycheck? You had not saved any money. What would you need to survive on?
You don’t want to be caught unaware. Savings provides you with financial security in case anything happens.
If you lose your job, you will be able to pursue other passions like starting a business because you already have the finances.
3. It improves your Productivity at work
Research studies have shown a clear relationship between financial literacy and productivity.
Workplace stress has been majorly attributed to financial problems. This is caused by a lack of financial management skills.
Once you increase your financial literacy at the workplace, you will be able to relieve some of your financial stress. In the end, you will perform better at work.
From the above benefits, it is clear financial literacy is very important to your career and even general life. If you want to expand your knowledge of money and finance, start learning more ways to improve yourself. Remember the more you know about your finances, the more you can expect your career to flourish.
The writer is a Communication Assistant/Digital marketer at Career Point Kenya. Email: email@example.com