According to Benjamin Franklin, “An investment in knowledge pays the best interest.” But what does that mean? In this case, it means ignorance is not bliss—especially when it comes to money. Fortunately, you don’t have to become a finance expert to boost your financial IQ. The goal is to gain an understanding of money basics, build financial confidence, and (ultimately) make smarter decisions. To get you started, here are some easy and effective ways to level up your financial literacy:
1. Read and Learn Regularly
Start by exploring resources designed to teach money concepts in an easy-to-digest way. Here are some popular books that offer relatable lessons on managing money:
- The Richest Man in Babylon by George S. Clauson. Originally published in 1926, this collection of parables (set in ancient Babylon) is about people navigating through financial troubles. It’s a best-seller, a favorite of Dave Ramsey’s, and often acclaimed as a modern-day classic.
- Total Money Makeover by Dave Ramsey. Speaking of Ramsey (the radio personality known for his financial advice), the finance expert’s 2003 book has sold over 9 million copies thanks to its no-nonsense approach to money myths and its advice for getting out of debt (and staying out). It has been updated and expanded over the years and the latest edition (the 20th Anniversary Edition) features money management tools and access to Ramsey’s EveryDollar budgeting app.
If reading isn’t your thing, try podcasts like Planet Money, which break down financial topics into everyday language. We also like Popcorn Finance, which offers easy-to-understand, jargon-free financial lessons (on subjects like inflation, hustle culture, and ethical investing) in 10 minutes or less.
Related: Books That Teach Kids About Saving Money
2. Take Advantage of Free Online Tools
Websites like Investopedia or NerdWallet feature easy-to-read articles about saving, investing, and budgeting. Both sites offer useful advice as long as you keep in mind that they earn money by promoting financial products to their users. You can also turn to free apps like Mint or YNAB (You Need a Budget) to learn how to track spending and manage your budget. BUT, before you download anything, research the app to make sure it is legitimate and well-respected.
3. Play Games That Teach Money Skills
Gamifying your financial learning can make the process more enjoyable. Apps like Finny or board games like Monopoly or Cashflow teach important money principles like budgeting, investing, and financial decision-making.
Related: The Surprising History of the Game of Monopoly
4. Get Comfortable with Budgeting
Creating a budget is one of the simplest ways to take control of your finances. Find a budgeting method that works with your lifestyle, or use the 50/30/20 rule:
- 50% of your income for needs
- 30% for wants
- 20% for savings and debt payments
This structure helps you organize your money while staying in control.
5. Get Comfy with Your Credit Report
Your credit score is a critical part of your financial picture, so it is important to familiarize yourself with the concept and process. Your score affects your ability to get loans, credit cards, or even rent an apartment. Check your score regularly through free tools like Credit Karma or AnnualCreditReport.com. Learn what factors influence your score (such as payment history, credit utilization, and length of credit history). By monitoring your score, you can make informed decisions to improve it over time.
6. Learn About Investing
Investing might seem intimidating, but starting small can make a big difference over time. Apps like Robinhood, Acorns, or Stash let you begin investing with as little as $5. You don’t need to know everything about the stock market to start building wealth—just focus on the basics.
7. Join a Community
Connect with people who are also looking to improve their financial skills. Many communities, both online and offline, focus on financial education. Forums like Reddit’s r/personalfinance or local workshops can provide support and new ideas.
8. Track Your Progress
The best (and worst) news about boosting your financial IQ is that it’s an ongoing journey. Stay curious and keep learning. To make it worthwhile, keep track of what you’re learning. Evaluate how you’re applying that knowledge in real life. Celebrate small wins, like successfully sticking to a budget or mastering a new investment concept.
The important thing to remember is that boosting your financial IQ doesn’t have to be overwhelming. Start small, reward yourself, and use the resources around you to build confidence. The more you know about money, the brighter your financial future will be.
Want more financial tips?
- Find out what is (and is not) a tax-deductible donation.
- Learn whether “Buy Now, Pay Later” programs are a good idea or a financial risk.