Dallas-based entrepreneur Renell “Rae” Shorter owns and operates Styles by the Lash Diva. Also the owner of Credit Diva of Dallas, Renell Shorter has expertise in financial literacy and its importance in achieving financial stability and freedom.
“Financial literacy” refers to the understanding of financial topics such as personal finance, money management, and investing. Below are some of its basic components:
- Budgeting. This includes the basics of creating and sticking to a budget. A budget is a plan you set of how you will spend your income. You set aside money for expenses such as utilities, insurance, and day to day items, and the rest you divide between savings and investments. When you do not follow a budget, it’s hard to hold yourself accountable for your spending habits.
- Interest rates. This includes the impact of interest rates on bank savings and debt payments, especially with regard to compound interest debt.
- Savings. Savings is money set aside in a bank savings account as a buffer for unexpected emergencies. Financial literacy includes developing and maintaining consistent saving habits. Saving is not only a means to prepare for tough times, it can also be used to set aside money for an expensive item.
- Financial safety. In the digital world, identity theft and fraud are common. Financial literacy involves understanding preventive measures to keep digital accounts secure.
“Financial literacy” refers to the understanding of financial topics such as personal finance, money management, and investing. Below are some of its basic components:
- Budgeting. This includes the basics of creating and sticking to a budget. A budget is a plan you set of how you will spend your income. You set aside money for expenses such as utilities, insurance, and day to day items, and the rest you divide between savings and investments. When you do not follow a budget, it’s hard to hold yourself accountable for your spending habits.
- Interest rates. This includes the impact of interest rates on bank savings and debt payments, especially with regard to compound interest debt.
- Savings. Savings is money set aside in a bank savings account as a buffer for unexpected emergencies. Financial literacy includes developing and maintaining consistent saving habits. Saving is not only a means to prepare for tough times, it can also be used to set aside money for an expensive item.
- Financial safety. In the digital world, identity theft and fraud are common. Financial literacy involves understanding preventive measures to keep digital accounts secure.
