Why is Financial Literacy Important? KLO Financial Services & Blackfinch
Understanding how different financial sectors work is beneficial when making responsible financial decisions, saving money and avoiding financial problems.
The importance of financial education is not only useful in making financial decisions like applying for a mortgage or planning for retirement, but also in every day budgeting like shopping, paying bills and using credit cards. For better financial stability, security and general wellbeing, financial education is crucial.
According to The Organisation for Economic Co-Operation and Development (OECD), the level of an individual’s financial literacy varies depending on education and income levels, but in general, is quite low, which can lead to increased stress levels when making financial decisions.
What is financial literacy?
To simplify, financial literacy is the understanding of essential financial concepts like spending, budgeting, saving and investing to make responsible and mindful financial decisions to manage money in the most efficient way.
Why is financial literacy important?
- Control over your finances
Having the knowledge and skills to understand your finances gives you the confidence to have better control of your money. This control could result in less worries and stress in your personal life, leading to an overall improvement in your wellbeing.
- See your financial potential
With a better understanding of your financial situation, you are able to understand all sections of your budget and recognise the best way to limit spending, make savings and view possible investment areas.
- Understand your budget
Financial education will help you to increase awareness of how financial obligations affect you and your finances. This includes debts, credit cards, taxes and insurance and their influence on your budget.
- Financial freedom
With increased financial literacy, you can use your time and money to enjoy your life, spend more time doing things you enjoy without being worried about your budget.
Where to start?
Learning is a lifelong process and understanding the complex laws and rules behind your finances may seem difficult. At KLO Financial Services, we are happy to support you with your education and help you on each stage of your financial journey.
KLO Financial Services and Blackfinch
Our partnership with Blackfinch allows us to provide a simplified investment process, with data assets delivered by Blackfinch Asset Management via their bespoke service-led portfolio service. Multi-asset portfolios are risk-adjusted to deliver attractive returns over the long-term to help our clients achieve their financial goals.
The Blackfinch Partnership Programme is limited to only 100 adviser firms, and so our clients can gain access to exclusive educational materials. Educating our clients is a priority and so our team will tailor our service to your needs and ensure that you understand the whole process clearly.
Coronavirus Crisis
Over the last few months, we have supported our clients in a number of ways, keeping in close contact and providing up to date information and advice.
We are always available to meet with you to discuss your financial objectives and assess your current strategies. The first consultation is always free and comes with no obligation. If you would like to speak to one of our expert financial advisers, please contact us today by calling 01926 492406.