Finance for Beginners: Financial Literacy

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What is financial literacy?

Financially illiteracy can cause you to end up in tight spots, poor credit, bankruptcy, housing foreclosure, and other negative consequences. But what does it mean to be financially literate?


Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. — Investopedia

Financial literacy is the possession of skills, knowledge, and behaviors that allow an individual to make informed decisions regarding money. Financial literacy, financial education and financial knowledge can and will be used interchangeably from here on out.

Why you need financial literacy

As at 2022, only 35% of Americans worked with a financial advisor. Most report that the services are barely affordable, let alone free, so most people just go about their finances on autopilot.

Digital finance platforms like Plently was the notably positive reason people didn't need help with their finances. Thankfully, there are now more resources than ever for those wishing to educate themselves about the world of finance. One such example is the U.S. government-sponsored Financial Literacy and Education Commission, which offers a range of free learning resources.

Importance of finance and financial literacy

Finance involves borrowing and lending, investing, raising capital, and selling & trading of all kinds. The purpose of these pursuits is to allow companies and individuals to fund certain activities or projects today, to be repaid in the future based on income streams generated from those activities. Without finance, people would not be able to afford to buy homes (entirely in cash), and companies would not be able to grow and expand as they can today. Finance, therefore, allows for the more efficient allocation of capital resources.

Financial literacy provides you the essential foundations of a smart relationship with money that will start a lifelong journey of learning about the financial aspects of your life. The earlier you start, the better off you'll be, because education is the key to success when it comes to money.

Benefits of financial literacy

• Financial literacy can prevent devastating mistakes.

• Financial literacy prepares people for emergencies.

• Financial literacy can help individuals reach their goals.

• Financial literacy invokes confidence.

What is Plently?

Plently is an American financial technology that helps its users take charge of their own finances despite the challenges of traditional banks. It modifies the concept of financial technology for increased optimality and convenience.

This digital way to manage and grow your finances offers you seamless transactions and the power of community. Manage your money effortlessly with our key features and services: digitized money circles, peer to peer payments, merchant services, bill payment, buy now pay later, debit and credit cards and gift cards, for all your spending and selling needs.

Escape the hassles of all conventional forms of banking with Plently while enjoying low fees, quick transactions, and personalized usernames for seamless connections and you never have to miss a bill again.

Follow us on social media @itsplently on all platforms for exciting updates.

Handling your finances and financial literacy with Plently

Becoming financially literate involves learning and practicing a variety of skills related to budgeting, managing and paying off debts, and understanding credit and investment products. Basic steps to improve your personal finances include creating a budget, keeping track of expenses, being diligent about timely payments, being prudent about saving money, periodically checking your credit report, and investing for your future.

On our platform, you learn to earn, spend, save and protect money. The safety of our users and their wealth is a top priority, and our security features are more than training wheels in your journey.

Ready to transform your financial experience? Visit www.plently.com today or download our app on Google Play Store or Apple App Store.