We’ve all heard the expression “knowledge is power” enough times that it may have lost its meaning for many of us. But, as an article from the Huffington Post points out, there is perhaps no tool more important to managing your finances that plain old knowhow.

What We Don’t Know, by the Numbers

It’s not a secret that Americans don’t have a great track record in recent years when it comes to handling money—millions of us are facing foreclosure, filing for bankruptcy or in serious credit card debt.

And, considering these sobering figures, it’s no wonder:

• Early debt: Sources note that an average college senior who owns at least one credit card has $4,138 in debt, an increase from $2,169 six years ago. Note that that number is in addition to student loans.
• Women & money: While almost all of us are under-informed about financial matters, women may be more likely to suffer ill effects: studies show that 67 percent of single women have no retirement account, 70 percent have so much debt it negatively affects their lives and only one percent would give themselves an “A” on financial literacy matters.
• Little help from schools: Polls suggest that as many as 90 percent of Americans think financial literacy should be a part of education, but 10 states have no financial literacy programs, and only three states require financial literacy courses to earn a high school degree.

How to Educate Yourself

Because we all make financial decisions every day (some major, some minor, all important), it’s crucial to start learning how to improve our finances now. Taking control of your money can help you:

• Plan for the future: Whether that includes marriage, children, homeownership, college, retirement, travel or something else, you’ll probably need money for it.
• Stay out of bad debt: Debt itself can negatively affect your credit score and ability to function financially, but it can also cause serious stress and otherwise negatively impact your life.
• Achieve your goals: When you’re not worrying about bills all the time, you’ll have the brain space and time to pursue goals that will truly make you happy.

Luckily, the Internet has a variety of resources to help you achieve financial literacy:

• An overview of important personal finance topics at TotalBankruptcy.com
• Financial literacy information, news and tutorials at Learnvest.com
• Free online money management from Mint.com
• A government site offering general financial literacy information for all ages at Consumer.gov

Let the journey toward financial stability begin!

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