Where do you start to gain the financial literacy you need to manage your money?
Let’s start with a definition. Financial literacy is the “ability to manage personal finance matters in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting, retirement and tax planning.”
Understanding your own financial literacy and which areas need improvement is an important step towards greater mastery of your own finances and a more productive relationship with your advisor.
This assessment from State Street Global Advisors (with an answer sheet) asks 13 questions about common terms used when making investment decisions. After completing it, you can work together with your advisor to review your results,
and start a broader conversation about how to most effectively achieve your investment goals. Download the assessment here.