The CardCookie Blog

The Importance of Financial Literacy and How to Improve Yours

Have you ever noticed that people earning a similar salary to yours seem to have their financial lives in order? They save money, go on trips, enjoy nights out, and still don’t look like they’re scrambling at the end of the month. How do they do it? The secret is financial literacy. Read on to find out what it is and, most importantly, how you can improve yours!

Published on 2025-01-09

What Is Financial Literacy?

It’s about having the knowledge and tools to make smart decisions regarding your personal finances—whether for yourself, your household, or even managing finances for others.

Why Does It Matter?

A solid understanding of personal finance is the foundation for managing your money effectively. It helps you achieve financial goals, whether it’s negotiating better salaries, saving for a dream vacation, or simply reducing financial stress. Now, don’t panic—being financially literate doesn’t mean you need a degree in economics. With a bit of basic knowledge and consistent effort, you’ll start seeing results.

If you’re ready to put financial literacy into action, start with How to Set Financial Goals and Actually Achieve Them.

Here’s what financial literacy can do for you:

Help You Make Better Decisions:

Whether it’s choosing the right savings account or evaluating a big purchase, financial literacy gives you the confidence to decide wisely.

To strengthen your everyday money decisions, you may also like How to Start Budgeting in 5 Easy Steps.

Improve Long-Term Planning:

Want to retire early or buy a house? Understanding finances helps you create and stick to a roadmap to achieve those dreams.

If retirement is part of your long-term plan, check out Retirement Planning in Your 30s: How to Start Planning for Retirement.

Boost Budgeting and Saving Skills:

With the right strategies, you can allocate your money effectively and start building an emergency fund (finally, right?). Ultimately, financial literacy leads to better financial health—and with it, greater peace of mind.

How to Improve Your Financial Literacy

Here’s the deal: you’ve got to dive into the subject. The good news? There’s a learning method for everyone. From old-school approaches like reading books to modern options like following financial influencers, the resources are endless.

Popular Books on Personal Finance

  • "The Intelligent Investor" by Benjamin Graham
  • "Your Money or Your Life" by Vicki Robin and Joe Dominguez
  • "The Total Money Makeover" by Dave Ramsey

If you're ready to go from learning to taking action, try pairing these books with Investing 101: A Beginner’s Guide to Growing Your Wealth or Simple Steps to Improve Your Credit Score and Save Money on Interest.

Finance Publications

  • The Wall Street Journal (Finance Section)
  • Investopedia
  • Money Magazine

To help you apply what you learn in real life, read The Art of Personal Finances: How to Get Better Deals in Everyday Life.

Top Podcasts

  • "The Dave Ramsey Show"
  • "Afford Anything" by Paula Pant
  • "How to Money"

If overspending is one of your biggest challenges, pair these podcasts with How to Stop Impulse Buying and Start Saving More.

Influential Social Media Profiles

  • @clevergirlfinance (Instagram)
  • @thebudgetmom (TikTok & Instagram)
  • @ramit (Twitter)
  • @personalfinanceclub (Instagram)
  • @millennialmoney (TikTok)
Looking to learn more smart ways to save money? Read all about it here. Or better yet