From Super Bowl advertisements to big city mayors taking payment in crypto, it’s become impossible to ignore the rise of cryptocurrencies, the digital assets hailed by some as the future of finance. One in five Americans has traded in, invested in, or used cryptocurrency, according to a recent NBC News poll.
Cryptocurrencies, the decentralized financial assets built on the blockchain, are generating excitement and activity with new investors, from Baby Boomers to Gen Z. It’s also helped shine a much-needed spotlight on the general public’s need for finance knowledge.
The fact is, improving your financial literacy can have benefits beyond your pocketbook: Harvard researchers have found that increased financial literacy contributes to better mental and physical health and is associated with a lower risk of depression.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you’d like to improve your financial literacy, here are three important lessons to keep in mind:
Don’t let market volatility stress you out
Between rising inflation and interest rates and ongoing uncertainty around the war in Ukraine, financial markets have been on a roller coaster ride for the last few months. When your portfolio loses value quickly, it can be tempting to bail out of markets entirely. But don’t panic – carefully consider all available options, including staying diversified and not making major changes to your portfolio, especially for long-term investors.
Timing the market – knowing exactly when to get in and out to minimize losses and maximize potential gains – is nearly impossible, even for professional investors. During the ups and downs, it is key to remember that when you’re in it for the long haul, the day-to-day balances should not be a central focus.
Market volatility is a normal part of investing and should not prompt panic or sudden changes in your investments if you take a long-term approach.
Count on Your Community
Building your financial literacy can feel overwhelming if you don’t have a background in money topics – even if Dogecoin memes abound. But you may have access to resources that can help you get started. Programs in your local community can serve as a critical (and often overlooked) financial lifeline to individuals anxious about money and the future. You may find that you have more resources available to you than you realize.
Research what’s taking place in your town or city when it comes to financial education training or courses, especially at a local college or nonprofit organization. There are also resources like Financial Health Network that can help you on your financial literacy journey. Or you can turn to your financial adviser or workplace benefits provider for additional content or materials that can help you improve your financial education.
Conversation Starters – Talk About Money
While many of us have grown up learning that it’s taboo or impolite to talk about money, keeping quiet about your financial concerns or questions may have a negative impact. While it can feel awkward to talk about money at first, it gets easier over time.
It’s particularly important to be transparent and open with your partner about money, which can prevent financial conflict in the future. If you have children, make sure to include them in discussions about finances as well, because open conversations about finances can help them develop a healthy relationship with money as they grow older.
Outside of your personal financial education, seeking the advice and resources from online, virtual or in-person financial professionals can help reaffirm your learning and be a critical tool in starting, refreshing or maintaining your financial security.
While cryptocurrency may have sparked your interest in financial literacy, learning about the broader financial markets is a smart move. Once you have a better understanding of how money works, you can start putting actions and behaviors in place to improve or protect your financial situation.
1059946-00001-00
-
Best Banks for Retirees 2025National banks offer a wide variety of accounts and services, including wealth and investment management. Here's Kiplinger's pick of the best.
-
Best Banks for High-Net-Worth Clients 2025National banks offer a wide variety of accounts and services, including wealth and investment management. Here's Kiplinger's pick of the best.
-
Five Ways to Maintain Charitable Giving During Volatile Times: A Giver's GuideWhen the economic outlook is uncertain, charitable giving is even more important — and impactful. You can be strategic by using donor-advised funds, diversifying assets and prioritizing unrestricted gifts.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
You Don't Want Just a Financial Plan: You Need a Purpose and Retirement IdealsThese five questions will help you drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting ByLearning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.
-
How to Buy an Annuity Online (Without Regret)You should never be rushed into buying an annuity. But now that they can be sold quickly and easily online, you need to be more alert than ever to pushy salesmanship. Here are four signs you're working online with a professional.
-
How Much Income Will an Indexed Annuity Get You? An Annuities Expert Lays Out the NumbersGuaranteed lifetime income sounds great, but how much will it be? Several factors determine your future payout on indexed annuities with an income rider.
