Throughout the years, tech innovations have proven to be extremely useful in improving everyone’s quality of life. Thanks to technology, we can now easily get a hold of the latest news and trends without stepping foot outside the house. We can entertain ourselves through gadget use, socialize and communicate with people more than a thousand miles away, and even apply for jobs and work remotely if we want. But one undeniable perk tech innovations have to offer is that these helped improve our quality of life through financial literacy.
The Importance of Financial Literacy
The term financial literacy refers to the ability to understand different financial skills and use such skills effectively. Knowing how to handle finances is not enough if one does not apply financial skills to save and borrow money responsibly, pay off debts and financial obligations on time, and invest money wisely. It is only when one utilizes their financial knowledge can they achieve a better quality of life.
Financial literacy is the key to making responsible financial decisions. The sad thing is that many Americans are not receiving the financial education needed to improve their finances. Even if some can increase their monthly income, their expenses grow along with it instead of their savings and investments.
The Role Tech Has on Improved Financial Literacy
Thanks to today’s different tech innovations, many people from around the world are becoming more financially literate than ever. Here’s how tech is influencing improved financial literacy across the globe.
Readily Available Financial Resources
The internet is home to a limitless amount of resources for everything one might need to survive in today’s world. With just a few quick searches, consumers can easily access free information. Businesses and financial professionals, for instance, are making the most out of the internet to spread financial awareness to all consumers.
This shows that even if one has no money to pay for the services of a financial advisor, they can still access crucial information that can help them make better financial decisions. Your goal this year could be to start an emergency fund, grow your retirement savings, pay off your debts, or start your investing journey. With all the information found on the internet, you can begin educating yourself with the different ways you can achieve these goals for free.
More Investment Options
One of the best ways to achieve financial freedom is by growing your wealth until you can quit your job without worrying about your future living expenses. The fastest way to do this is by investing your hard-earned cash so that you can substantially grow your wealth. Still, investing has its risks.
The good news is that there are many investment options you can now choose from. If starting a business is not something you find interesting, you can always explore other investment strategies. This can include investing in the stock market, cryptocurrencies, and the like.
Even if you have no time to handle your investments and need help to manage your diverse portfolio, you can still stay committed to investing. One way to do so is by working with expert services specializing in portfolio management. The pros can help you initiate and maintain goals by meeting your investment needs with a time-tested model.
Gamification Motivation for Financial Literacy
Another tech advancement that is currently making waves is gamification. Gamificatoin is a gaming-based approach that enables investors to have fun while supporting real-life financial action. The financial market now utilizes consumers’ love for gaming to entice them to invest and build financial security.
This is not to say that the gamification effect is a sure-fire way of getting more returns for every investment you make. This is essentially a fun way to improve financial literacy through the element of gameful design. The great thing about this model is that investors can test their skills, improve their way of managing personal finance, and enjoy returns for making the right financial choices.
An example of this is Axie Infinity. This crypto investing strategy has got millions of people hooked and playing the game on a daily basis. Being able to gamify one’s investing is actually a dream come true for investors who are tired of the usual money game.
This list shows that technology has come a long way in helping consumers increase their financial literacy. Innovations made it possible to access free, helpful financial resources, gamify their usual investment strategies, and diversify their portfolio using other investment options. You, too, can start improving your quality of life for the better by investing time and resources becoming financially literate so that you can begin making better-informed choices concerning your personal finances.