Small dollar loans irrelevant to the wealthy? Think again
There’s no doubt about it – money can get complicated. It’s emotional, compromising, and slippery, especially when one doesn’t understand how to use it to work for them. That’s an issue of financial literacy – possessing the knowledge of understanding money and finance. You gain financial literacy by engaging in financial education; counseling through your local credit union on tools like small dollar loans, school classes, personal research, or other forms of reputable learning.
The reality is that financial literacy only goes so far when one doesn’t apply that knowledge in order to achieve financial health. It’s all about execution, and utilizing the contemporary financial tools like digital small-dollar loans to reach one’s goals. If you see a lot of your members struggling in this area, you already know they’re not alone. Not even close.
Applying that knowledge isn’t a guarantee, either. It’s one of those “use it or lose it” disciplines. A 2013 study found that efforts to increase financial literacy and education had an extremely low correlation with changes in the financial behaviors of those studied. The researchers went on to suggest that for financial education and literacy to change behavior in lasting, real world ways, it requires application soon after learning. Otherwise, we forget or lose motivation. That’s just how the human brain works.
A further misconception is that the wealthy in America are somehow more knowledgeable and actionable in the ways of proper financial literacy, health, and wellness than others.
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