October is Financial Literacy Month: Top Resources for Enhancing Your Financial Knowledge

Insights

Financial literacy plays a vital role in wealth accumulation and financial well-being. Studies show that individuals with financial literacy achieve higher returns on investment (ROI), benefit more often from investing in higher-yielding assets like stocks and real estate, and better weather adverse financial shocks and economic events.

Moreover, a shocking 40% of retirement wealth inequality in the United States likely comes down to financial knowledge. Yet despite this impact, the financial literacy rate surprisingly hovers around only 50%.

And it’s not just the US—financial literacy sits alarmingly low across the globe. But why? And what can you do to make sure you’re on the right side of that statistic?

Why Financial Literacy Matters

What is financial literacy exactly? Broadly, it combines the awareness, knowledge, skills, and behaviors necessary for making rational financial decisions. The School of Economics and Business defines it as a “critical life skill that is essential for achieving financial security and individual well-being.”

With many households not having sufficient emergency funds and many Americans living paycheck to paycheck, being financially literate often proves the difference between struggling and thriving.

Fortunately, you can hone your financial literacy with a little guidance and support. Below, you’ll find some of our favorite tools to help you on that path.

1. Vanguard’s Tools for Business Owners

Business owners’ financial literacy directly impacts their ability to run successful operations and make short- and long-term strategic decisions. Vanguard offers a selection of the best resources for investment management, retirement planning, and risk assessment. 

• Investment management – Explore platforms and various different vehicles in which to save or invest, depending on your goals, such as Roth IRAs, 529s, ETFs, mutual funds, and more.

• Financial advisors – Browse their offerings of digital or personal advisors and wealth management pros to find the best investment advice for your situation.

• Tools and calculators – Gain deeper insights into your finances with dozens of tools, including retirement calculators, college savings tools, portfolio analysis, and tax calculators.

Check out Vanguard’s educational resources, or play around with their financial tools and calculators.

2. Business Enterprise Institute (BEI)

Business owners starting to consider when to exit their company should examine the courses and software provided by BEI—one of Tomoro’s partners. With the PlanIt platform, business owners and their advisors can shorten timelines with optimized strategies, like whether to attract strategic, outside buyers or sell to family, insiders, or your most valuable employees (e.g., lump sum, employee stock ownership programs (ESOP)).

Prepare all the documentation and business plans needed to begin exploring sale options with BEI.

3. Consumer.gov

The US Federal Trade Commission (FTC) provides plenty of free information and guidance via its official consumer.gov website. The site offers the most straightforward, easy-to-understand resources that are perfect for individuals and business owners alike to improve their financial literacy. Explore resources for:

• Managing debt and credit – Learn from breakdowns on the fundamentals of credit and debt management, with clear guidance on how to establish good credit, avoid debt traps, and handle your debt effectively.

• Budget and saving – Use tools and strategies to create a budget and stick to it, controlling your spending and savings habits.

• Avoiding scams – Keep yourself safe from fraud and identity theft with the site’s helpful guidance on how to secure and protect yourself from scams.

Financial tools – Access a selection of tools, lesson plans, worksheets, and videos to help you improve your financial literacy.

4. Brown and Brown: Risk Management and Insurance

Leading insurance brokerage Brown and Brown Insurance helps mitigate risk via business insurance, personal insurance, employee benefits, and specialized programs. Given that risk management comprises one of the most vital parts of a healthy financial position, relevant resources shouldn’t be overlooked. And it’s also why Tomoro relies on its partnership with Brown and Brown to better support clients.

5. Currence

Currence offers a platform for both individuals and financial professionals to help you focus on savings and net cash flow. They help you structure your cash flow and “save before you spend.” Plus, Currence offers a wealth of resources to help you improve your financial literacy:

• Cash flow management – Currence helps you organize your income through a central account called a Reservoir to optimize your spending and saving habits.

• Wealth accumulation – When you direct your cash flow, the platform helps you increase your savings rate, potentially six times higher than the national average.

• Financial learning resources – Even for non-clients, Currence offers a resource library to help you improve your financial standing and learn more about different financial strategies.

6. Tomoro’s Financial Toolkits

Tomoro’s comprehensive toolkits equip business owners and families with various resources and fiduciary guidance to help manage their finances more effectively. Tomoro’s core offerings cover wealth management, business strategy, and financial insight.

• Wealth management guides – Manage and grow your wealth, both personal and professional, with our WealthMaps guiding your journey.

• Financial planning tools – Future-proof your family’s finances and protect your loved ones with the right insurance.

• Tax planning advice – Navigate complex tax structures and take advantage of the right investments, like real estate or tax-advantaged college savings plans.

Improve Your Financial Literacy With Tomoro

At Tomoro, we believe that everyone can improve their financial literacy and, in doing so, prepare their business and their family for a more prosperous future. Our tailored financial guidance—and resources like WealthMaps and Currence—will help you cultivate wealth and focus on what really matters.

Contact us to learn how we can help you map your financial future.