Financial literacy in the digital age

As we navigate through the complexities of our daily lives, it is essential to have a good understanding of accounting and financial literacy. These concepts enable us to make informed decisions about our finances and investments, which is crucial for individuals and organizations alike. Unfortunately, many Filipinos struggle to add these to their skill set. According to a Philam Life survey, 96 percent of Filipinos are concerned about their own and their families' health, yet only 16 percent are prepared to pay for medical bills if diagnosed with a critical illness. This highlights the importance of financial literacy and how it can become a 'make or break' decision someday.

While living in the digital age has its pros and cons, technology can be a stepping stone for acquiring accounting and financial literacy. For instance, YouTube, which has been around for nearly two decades, can offer a wealth of knowledge and personal growth opportunities. A lot of reputable YouTube channels are dedicated to advocating for accounting and financial literacy. Other alternatives can include taking affordable on-demand courses on digital platforms such as Skillshare and Coursera that only requires setting aside a small part of one’s week to learn. It’s just a matter of choosing which digital platform best suits one’s goals. However, it is crucial to be careful of get-rich-quick schemes and websites that ask for premium membership in exchange for content or "tips." The best things in life take time and intelligent trial-and-error; financial literacy is no exception.

Experiential learning is a crucial part of mastering any concept. One good way to start is by tracking one’s daily finances and transactions. This can be done by simply writing on a blank piece of paper or by using digital spreadsheets such as Microsoft Excel or Google Sheets. These platforms make tracking more convenient, easier to tabulate, and fairly accessible. By tracking one’s finances, we can evaluate goals, analyze spending habits, and develop a more disciplined approach towards our spending habits.

When I first started tracking my finances, I realized that my entire approach was flawed. Previously, I would prioritize my spending on my wants and needs, and whatever was left would be put aside to my savings. But I soon realized that there would never be an end to the things that I wanted and needed. Consequently, my savings account was not growing substantially over time. So, I decided to reframe my mindset and set aside my money for savings first, and then allocate the rest to my wants and needs. Savings in this context could mean an emergency fund, an investing fund, or even a travel fund, depending on one’s goals.

I'll summarize some key learnings based on my financial literacy journey across three areas: building awareness, taking initiative, and thoughtful planning.

First, I boosted my self-awareness by beginning to track my daily spending in a digital spreadsheet. This tracking illuminated just how much was going toward wants vs needs and how little was left for savings as a result. The transparency of analyzing my cash flow in this aggregated way drove home where my approach needed rethinking. Regular check-ins help me course correct faster now.

Second, I took initiative by carving out time to take online learning courses on budgeting fundamentals and investing. Paired with curated YouTube videos to reinforce key concepts, I began forming healthier financial habits. My patience and consistency in making time for these digital learning opportunities is deepening my literacy and shaping wiser spending tradeoffs.

Finally, I planned having closer conversations with family and loved ones around a my digital budget and financial plans. This collaborative planning has brought us together while providing a roadmap to realize our individual and shared financial targets. Tracking our shared budget keeps us accountable.

As we increasingly live out our financial lives through digital platforms, taking advantage of online tracking, education, and planning tools is essential for taking control of our financial wellbeing. Personally leveraging resources like expense trackers, budgeting courses, and shared family financial models has transformed my mindset, awareness, and discipline around money for the better. While each financial journey is unique, embracing this digital toolkit to enhance literacy and accountability has been empowering and enriching. I hope readers might feel inspired to start their own humble process of utilizing the digital tools accessible to us in acquiring accounting and financial literacy, one small step at a time.