How Does Your Financial Knowledge Hold Up?

This contributed post is for informational purposes only. Please consult a business, financial and legal professional before making any decisions. We may earn money or products from the affiliate links in this post.

Your Financial Knowledge

Your finances are a big part of your life. Even children, with no income and no need to make any money, know just how special a bit of pocket money is. Money makes the world go round, and we feel a lot safer when we have some in the bank. We hear a lot about investments, and just how profitable they can be. And when we’re in a position to open up a savings account, we know we’re sitting tight for the future. 

But despite knowing the ins and outs of financial security, no matter our age, are we aware of everything someone like us needs to know? We’re not experts, and we don’t need to be, but there’s a lot more to the money in our hands. 

So, even if you’re someone who has no clue what an accountant even does, there’s some things you need to know about the financial world we’re all a part of. So, let’s quickly test how your financial knowledge holds up with the points below. It’ll do your bank account a lot of good in the long run. 

Checking the stock market from time to time does not a finance expert make. 

Overseas Markets Have a Lot of Impact

Did you know that in Sweden payday loans are called “smslån”? Well, you do now! And consider this just the first little nugget of info you’ll be learning about overseas markets. They have a huge impact on the economies we work with in our countries, considering the amount of trade that passes back and forth across international waters. And the devaluing of a currency in places like China or the USA can seriously devalue the money used in Europe and the UK. 

The global economy is always going to affect the national and local economies of the countries and areas we live in. It’s not wise to think your finances are going to be safe in a bank account that’s on the other side of the world, away from a recession that’s taking the rest of the globe by storm. 

Gold Isn’t as Valuable as We’re Made to Believe

In truth, this principle applies to a lot of markets, and it’s something to learn for your investment portfolio and your personal finance decisions. But gold itself has had a very shady history in terms of value, and no longer are we in a gold rush and arming ourselves with picks to try and strike it big.

Gold has fluctuated majorly in the past 20 or so years alone. All time lows and all time highs in quick succession – the only other investment that could match up is bitcoin! So make sure you take any projected value of a tangible asset with a grain of salt. Do your research before you put any money into it. See where it has come from, and check the history of its ups and downs. 

Remember, learning about your finances is key to having a healthy and wealthy future.