YOUR CASH COUNTS
Financial Literacy
For Your Future
One of the most important features of the United States economy is its reliance on a well defined rule of law. Ever since our founding fathers developed the U.S. Constitution our country committed itself to establishing a climate that supported free choice, private property, and contractual agreements. These legal concepts create a foundation for good financial decision making and wealth accumulation. Consequently, it is important for people who wish to be financially literate and free to understand how the rule of law impacts their life now and in the future.
Embedded in the rule of law is the acceptance of the principle that people that add value to society through productive work are rewarded. This reward can come in many forms, but for most it is money. Once the money is earned, our system allows for the people with money to exchange it for goods and services of their choice. This exchange is an important part of our economy, because it allows for a unique result. Both parties to the exchange are made better off. In addition, exchanges and contracts are protected by the rule of law so it is easy to conduct an exchange and gain from the process.
Given the fact that people rely on the rule of law every day, it is important to acquire a minimum of knowledge of its basic principles. This knowledge will add comfort to decision makers and establish legal expectations that, if necessary, can be protected by the courts. The basics of this knowledge should include:
Although this list is not exhaustive, knowledge and acceptance of the underlying principles in each of these areas will help people seeking financial literacy, financial freedom, and increased wealth. Fortunately, most people abide by the rule of law and in most communities a number of people are available to help people better understand it. As is often the case it is better to seek knowledge or help before a problem develops. Consequently, if you are making a decision that you are uncomfortable with or feel uninformed about seek advice before the decision is finalized. Many professions can and will provide good advice. People working in the following areas will help:
Community helpers are abundant and very helpful. In so many cases, people who get themselves in financial difficulties say “if I would have only asked for advice/help”. Get use to seeking advice and getting help. Remember the only stupid question is the one not asked.
ADDITIONAL SOURCES
1) E-Personal Finance