According to the Personal Finance (P-Fin) Index, US adults correctly answered only 49% of basic money questions. That gap shows how many people are making everyday financial decisions without the knowledge or confidence they need.
Learning the basics changes that. Financial literacy concepts like paying bills on time and saving for the future help you take control of your life, not just your wallet.
If you’re trying to figure out how to improve your financial literacy, the good news is you can start small and still make real progress. No matter your age or income, there are simple ways to get better with money.
Key Points
- Financial literacy means understanding and applying money skills like budgeting, saving, managing credit, and avoiding debt.
- Start with the basics and learn how to track your income and expenses. Then, build up to topics like how interest works and how to build credit.
- Use real-world tools like budgeting apps or personal finance courses to make learning easier and more actionable.
- Apply what you learn by creating a budget and having honest money conversations with people you trust.
- Financial literacy looks different at every life stage, and building it consistently leads to stronger decisions and greater confidence.
What Does It Mean to Improve Financial Literacy?
Financial literacy is the ability to understand how money works in your daily life. A big part of that is building the skills to make it work for you. Maybe that means tackling a credit card balance with a plan or setting up a small cushion so a surprise bill doesn’t throw everything off.
For students, it might start with learning how to budget an allowance or open a savings account. Parents might focus on managing household expenses or teaching their kids how to save. Adults juggling rent, car payments, and long-term goals like homeownership or retirement often need guidance that reduces stress and brings more confidence to their choices.
The good news is that financial literacy isn’t a “you have it or you don’t” type of thing. It grows with practice, just like any other skill.
Practical Ways to Improve Financial Literacy
Improving your financial literacy begins with simple actions that make money feel more manageable. As you learn and apply new concepts, you’ll feel more in control. These 7 steps can help you build stronger habits and progress toward your goals.
1. Start with the Basics of Personal Finance
Before you dive into investing or compare credit cards, get grounded in the basics. A solid financial foundation starts with understanding core ideas like interest, budgeting, credit, and how money moves through your daily life. These concepts show up everywhere, from student loans and car payments to savings goals.
If you’re just starting or need a refresher, check out Intuit’s guide to the basics of financial literacy. It breaks down the essentials in a way that’s easy to understand and apply. No finance degree necessary.
2. Take a Personal Finance Course
For some, the fastest way to learn is through a structured curriculum. A personal finance course walks you through key topics like saving, taxes, and managing debt. Many are free or low-cost and can be taken online, through your local community center, or even as part of employee benefits programs.
Courses help fill knowledge gaps and give you real examples you can use right away. Not sure where to begin? Intuit for Education and other leading personal finance courses meet you where you are. It doesn’t matter if you’re just starting or simply sharpening your skills.
3. Read Books, Blogs, and Reputable Resources
Money advice is everywhere, but the quality varies (a lot). Sticking to trusted sources helps cut through the noise and make smarter decisions with less guesswork. Books, blogs, and newsletters written by certified financial experts or well-known educators are excellent starting points.
Look for voices that break down complex topics in plain language and give real-life examples. A sharp blog post about choosing a credit card or a personal story about saving for a first home can teach you just as much as a textbook.
Try building a small reading habit each week. The more exposure you get to financial concepts, the more your confidence will grow.
4. Use Financial Tools and Apps
You don’t have to manage your money with spreadsheets or notebooks anymore. With just a few taps or clicks, financial apps effortlessly do heavy lifting like tracking spending and setting savings goals.
There’s no shortage of budgeting apps available. They can make it easy to see where your money’s going. And platforms like Credit Karma can help you monitor and improve your credit score without the guesswork.
These resources make financial literacy a hands-on and interactive experience.
5. Practice by Creating a Budget
“Knowledge is power,” the old saying goes. But knowledge really only translates to power when you apply it. That’s where real growth happens. The experience of creating a budget makes your knowledge more powerful.
Think of a budget as your plan. It shows you how much is coming in, where it’s going, and how to shift things if you want to save more or spend less.
You don’t need a complicated spreadsheet to start. Just write down your income and monthly expenses, then track your spending for a few weeks. Seeing your habits on paper (or in an app) can be eye-opening and motivating.
6. Learn About Credit and Debt Management
When you use it wisely, credit can help you reach your financial goals faster. That’s why a good credit score is so valuable.
It affects everything from getting approved for a loan to how much interest you’ll pay. Start by learning how credit scores are calculated, how interest works, and what happens when you miss payments. Then look at your own credit and debt situation.
The more you understand how credit and debt work, the easier it is to stay out of trouble and in control. Frameworks like the snowball or avalanche methods can help you strategically chip away at balances.
It’s also helpful to understand concepts like your credit utilization ratio, which is how much of your available credit you’re using. When that percentage stays low, your score stays healthier. This goes a long way in keeping any debt you carry manageable and less damaging to your score.
7. Engage in Conversations About Money
Talking about money can be uncomfortable, but avoiding the topic until it’s too late often makes it harder down the line. Open, honest money conversations are among the most underrated ways to improve your financial literacy.
If you know someone who handles their money well, ask how they do it. You might discuss with parents or friends how they save or approach retirement. And sharing your own wins and missteps creates space for real, judgment-free learning.
You don’t need to have all the answers to start the conversation. In fact, asking questions is where learning really begins. Money doesn’t have to be taboo. When you make it part of your regular dialogue, you start to build a mindset of curiosity instead of fear. And that can help you learn faster and gain confidence.
Tips for Different Life Stages
The way you apply your financial literacy and the skills you use will change over time. What works for a teenager just learning about money is different from what a parent or college grad might need.
- Teens: This is the time to build early habits, like earning, saving, tracking, spending, and making simple choices with intention. Even something like budgeting birthday money or setting a savings goal for a new phone teaches lessons that stick.
- Young adults: New responsibilities show up fast, like paying bills or managing student loans. This is an ideal time to set financial goals and use tools that make budgeting easier to stay on top of.
- Parents: With family expenses, long-term planning becomes a bigger part of the picture. Objectives like saving for retirement or setting up a college fund all require a longer view than earlier stages typically demand.
- Educators: Teachers can spark financial confidence early by bringing personal finance into the classroom. There’s a growing collection of free tools and ready-made lessons online that make it easier to introduce these skills in meaningful ways.
Take the First Step Toward Financial Literacy
Getting better with money doesn’t have to be overwhelming. You’ve already taken the first step by deciding to learn. The important thing now is to keep going.
Financial literacy isn’t something you master overnight. It’s a skill you build over time, choice by choice. Start small. Pick one habit to change and lean on tools or resources to make it easier. Approach it like you’re building a wall, laying one brick at a time.
And you don’t have to do it alone. Intuit is here to support you, no matter where you are in your journey. Explore Intuit’s financial literacy program, packed with real-world tools and resources that make learning money skills practical and approachable. Start now, and build the kind of financial confidence that lasts a lifetime.
FAQs
How can you tell if your financial literacy needs to be improved or not?
Struggling to stick to a budget, falling behind on bills, or avoiding financial conversations are all signs that there’s room to grow. The good news is that recognizing those gaps is the first step toward building confidence and control.
How long does it take to improve your financial literacy?
It depends on how much time you put into learning and applying new habits. Some basic concepts, like tracking expenses or understanding how credit works, might click in just a few weeks. Deeper skills, like investing or long-term planning, tend to take more time. That said, every small step adds up fast.
Can financial literacy actually save you money?
Yes. When you understand how interest, fees, budgeting, and credit work, you can avoid costly mistakes and spot more ways to save. Better financial decisions lead to less waste, more control, and often more money in your pocket over time.