How to build your financial IQ
We’re fortunate to live in an age where information is at our fingertips.
A proliferation in apps that make low-cost investing easy, combined with anaemic interest rates on bank savings and reduced spending during COVID-induced lockdowns, has delivered an unprecedented opportunity for many Australians to wade into the investment world.
But as we’ve seen in the past couple of months, markets don’t always go up, prompting some new investors to try and improve their knowledge of financial investments to better understand what is going on.
We’re fortunate to live in an age where information is at our fingertips. Credit:Dionne Gain
If you’re in this cohort, here’s some reliable sources of information that will help raise your Financial IQ.
By far the best source of financial literacy information on the web is the government’s MoneySmart site. Here you will find excellent calculators for all the financial fundamentals – budgeting, mortgages and superannuation.
There’s lots of articles on things like investing in shares and buying a home. And the content is all presented in easily understood language to ensure it is accessible to as many people as possible.
Another great source for upping your Financial IQ is regular Money contributor Noel Whittaker. His website has several free resources and some great calculators. I find his drawdown calculator in particular very user-friendly and helpful.
For those specifically interested in stock market investing, the ASX Investor page has some great resources that dig a little deeper than you will find in the other two sites mentioned. There’s even a free sharemarket game that enables you to do some pretend investing and see how you ride the normal volatility that markets provide.
Podcasts are a great way to learn whilst you’re driving to work or are out on a walk. When it comes to financial literacy, I think the best is My Millennial Money by Glen James. Glen is a former financial planner and so not only does he know his stuff, he also understands the problems real people face. And he delivers his material with a good sprinkling of humour to make each episode enjoyable to listen to.
Of course, I have to also mention my own podcast here, Financial Autonomy. As the name suggests, our focus leans more towards financial independence. With more than four years of weekly content having been released, there’s plenty in the back catalogue for you to look through and find an answer to your burning conundrum.
Another great source of financial literacy is YouTube. The challenge here is filtering quality content from videos of those simply keen to share their particular spin on the world. CommSecTV is however a reliable source of market information and a great way to bring yourself up to speed with what’s happening right now on investment markets. It also provides some excellent company updates during reporting season, which can be useful for those looking to buy individual stocks.
We all know that investing in our knowledge can be the most profitable investment of all. I hope some of these resources help you move forward with your financial goals.
Paul Benson is a Financial Planner, author, and host of the Financial Autonomy podcast.
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