Mastering Financial Literacy: How to Get and Keep the Coin!
- Tura B.
- Jun 18
- 12 min read
A 2024 Pew Research Center survey found that 64% of Black adults rate their personal financial situation as only fair or poor, and 55% experience at least one economic worry daily or almost daily.
Getting to the Basics
Financial literacy is a common buzzword nowadays. There are tons of workshops, crash courses, and ways that claim to educate you on what to do with your money! The most common concern is...if it takes money to make money, then I'm doomed.. (Followed by an immediate crash out!!) Well wait, just hold on a second.. What I will start by saying is that in order to create WEALTH, yes it takes an investment of money, but you don't began a race at the finish line now do you?? So let's start from the beginning...(Deep Breaths!!!) Being financially literate is a crucial life skill that empowers you to take control of your financial future. It's a muscle that you strengthen over time, a pattern of behavior if you will. As a young woman—especially a woman of color—this knowledge can be a game-changer. Navigating the world of money can feel overwhelming, but understanding financial concepts can open doors to opportunities that might otherwise seem out of reach.
Imagine having the confidence to create a budget, set savings goals, and make informed investment decisions. This is how you can take control of your present financial reality, and put the odds in your favor for your future. Picture yourself breaking free from the chains of debt and building a future where your financial choices reflect your aspirations. I am dedicating this blog post to equip you with the knowledge and tools to do just that.
The essential components of financial literacy, explores practical strategies that make managing your money not seem like a task, but something you want to engage in and be excited about. What is that you want to achieve? You definitely need a budget..(Booooo,!!!! I know!). Lastly, we need a saving and investing strategy to grow your coin honey. Debt management is the most frustrating, but due to higher education, preparing to position ourselves, or just miscalculated decisions, we still need to ensure you're equipped to handle any financial hurdles that come your way and get that lingering cloud up off of you.
So, if you're ready to take charge of your finances and pave the way for a secure and thriving future, keep reading. Your journey to financial empowerment starts here miss mamas!
Understanding the Basics of Financial Literacy
What exactly is Financial Literacy?
Let's do this! Financial literacy defined is your ability to understand and effectively manage your financial resources. Essentially, how do you have money coming in? A job, a side-gig, or student-work program. How do you make money? Look. it's not just about knowing how to balance your account to keep it out of overdraft, but making informed decisions that can enhance your financial well-being( REMEMBER, it's a pattern of behavior). This knowledge empowers you to navigate complex financial landscapes, from choosing the right bank account to understanding investment opportunities. As a a woman of color, becoming financially literate is essential in breaking down barriers that have historically limited your financial freedom, statistically the odds are against you.
Key Components of Financial Literacy
At its core, financial literacy encompasses several key components. Budgeting is one of the fundamental skills you need to master. It involves tracking your income and expenses, allowing you to see where your money goes and how to allocate it effectively. Saving is equally crucial; setting aside funds for emergencies or future plans can provide a safety net that gives you peace of mind. Additionally, understanding investing opens doors to growing your wealth over time. It’s about making your money work for you rather than merely saving it in a bank account. Lastly, grasping the concept of credit—how credit scores work and their impact on your financial decisions—is vital for making sound choices that affect your future.
Why it Matters
Financial literacy isn’t a flex for real according to socials, LOOKING the part is. The REAL flex is looking and actually living out that life! That's Tea. Knowing where you stand, and more importantly being honest about it is a necessity in today's world. With the rise of social media and consumer culture, and comparison, you are constantly bombarded with messages encouraging impulse spending. Without a solid understanding of financial principles, it’s easy to fall into traps that can lead to debt and financial instability by trying to play a part. By becoming financially literate, you not only protect yourself from these pitfalls but also position yourself to take advantage of opportunities that promote financial growth and independence.
Taking the First Steps
Embarking on your financial literacy journey may have you feeling overstimulated and aggravated, but the first step is to educate yourself. Begin by familiarizing yourself with basic financial terms and concepts. There are countless resources available today—books, podcasts, and online courses—that specifically cater to your demographic. Engaging with these materials can help you build a strong foundation of knowledge. Remember, financial literacy is a lifelong pursuit; the more you learn, the better equipped you’ll be to navigate your financial future with confidence and clarity.
Setting Financial Goals
Setting financial goals is the first step to being empowered. These goals give you direction and motivation, helping you understand what you want to achieve with your money. Whether you're planning for college, dreaming of owning a car, or saving for that perfect vacation, setting specific goals allows you to create a roadmap for your financial journey. Set some goals with real expiration dates so that you can get motivated in creating the life you know that you deserve.
To make your financial goals tangible. Here's the outline:
SMART GOALS: Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of saying, "I want to save money," you could set a goal like, "I want to save $1,000 for a new laptop within the next 10 months." This clarity makes it easier to track your progress and stay motivated. Here are some examples of financial goals that you might consider setting:
- Short-term goals (within 1 year): Saving for a concert ticket, a new outfit, or a weekend getaway.
- Medium-term goals (1-3 years): Building an emergency fund of $3,000 or saving for a summer internship abroad.
- Long-term goals (3+ years): Planning for college tuition, buying a car, or setting aside money for a future home.
"As you set your goals, remember to write them down and put them where you can see them daily as a reminder and promise to yourself. This practice not only keeps your aspirations fresh in your mind but also allows you to celebrate your progress along the way. Each small victory builds your confidence and reinforces your commitment to achieving your financial dreams. So, take a moment to reflect on what you truly want, and let those desires guide your financial journey. "
Budgets Don't Restrict, THEY PREPARE YOU!
Black women are nearly five times more likely than white men to rely on expensive payday loans due to limited access to formal credit and financial information. Additionally, less than 40% of Black women have the liquidity to cover three months of expenses, compared to more than 60% of white men .
Budgeting is a powerful step toward financial freedom. It’s not just about tracking expenses—it’s about aligning your spending with your goals. Think of your budget as a roadmap that helps you make intentional decisions with your money.
Steps to Create a Budget:
Know Your Income: Add up all sources of income—salary, side gigs, etc.—You need to what you are working with.
Track Expenses: List fixed costs (rent, bills) and variable ones (groceries, fun). This helps identify where you can cut back. Use our resource for tracking and maintaining your budget. https://www.tilled-soil.com/resources
Set Limits: Assign spending limits to each category. Be realistic and look for small swaps to save more.
Review Often: Put this where you can see it as a reminder daily. Revisit your budget monthly. Life changes, and your budget should too.
Budgeting is personal choice-use it to support your dreams, not restrict them. With a little planning, you’ll gain clarity and confidence with your money.
Saving & Investing Basics
Here is where discipline has to kick in to start saving regularly, even small amounts. Open a separate savings account for your SMART goals and automate transfers to make saving effortless. Hear me clearly, go as far as automating from your payroll check if possible. SET IT AND FORGET IT!
Next, explore investing. Start simple with index funds or ETFs, which spread risk and grow steadily over time. The earlier you start, the more you benefit from compound interest. (We don't give investment advice, but highly recommend that's its utilized as an effective financial tool for growing your wealth. Speak with a financial professional)
Debt is a Headache, but it's YOURS!
Debt is the biggest downer that a girl can have. You just want to get a bag, look cute while doing it, and be at peace. Don't I get it! For some you, debt was required to explore higher education, certifications, or just to live..how about that. (We listen and we NEVER judge!) So you need to handle it, not ignore it..right? RIGHT! Because credit worthiness is a thing. The first step is understanding what you owe and why. Some debt, like student loans, can be strategic—but only if it’s managed well. Here are some ways to navigate:
Create a Repayment Plan:
List all debts, interest rates, and minimum payments.
Choose a strategy: Snowball (smallest debt first) for motivation, or Avalanche (highest interest first) for savings.
Stick to your plan and celebrate milestones along the way.
Managing debt is about progress, not perfection. With a clear plan and consistency, you can take control and move forward confidently. The key is sticking to the script, and showing up for yourself by doing what you say you will do for yourself.
Check the stats:
These statistics underscore the importance of understanding the diverse factors influencing BNPL usage among Gen Z women of color, including access to credit, financial literacy, and cultural considerations.
Key Statistics:
High Adoption Rates: Approximately 60% of Gen Z consumers have utilized BNPL services, with women demonstrating a slightly higher usage rate than men. (fitsmallbusiness.com)
Racial Disparities: Black and Hispanic consumers are more likely to use BNPL services compared to their white counterparts. Specifically, Black consumers are about 63% more likely to use BNPL platforms than white consumers. (forbes.com)
Financial Motivations: Many users, especially those from lower-income backgrounds, turn to BNPL as a means to manage cash flow and afford necessary purchases, indicating a reliance on these services due to financial constraints. (forbes.com)
Identifying Common Challenges
Breaking Barriers
Let’s be real—navigating money isn’t always easy, especially when the odds feel stacked against you. For many young women of color, the journey to financial literacy comes with unique challenges. From not having access to reliable financial education to growing up in communities where money wasn’t openly talked about, it's no surprise that budgeting, saving, and investing can feel overwhelming.
Cultural expectations, generational pressure, and systemic barriers often shape how we view and manage money. Add in a deep-rooted mistrust of financial institutions—thanks to years of exclusion and unfair treatment—and it’s clear why so many of us feel left out of the money conversation.
This is the facts: your background doesn’t have to limit your financial future. By acknowledging these obstacles and taking small, informed steps, you can build the confidence and knowledge to take control of your money—and your goals. This is your time to break cycles, build wealth, and redefine what financial success looks like on your terms.
Breaking Barriers: Financial Literacy for Gen Z Women of Color
Check these stats:
Limited Resources: A 2023 survey revealed that only 38% of Hispanic adults and 50% of Black adults feel knowledgeable about personal finances, compared to 58% of White adults. (pewresearch.org)
Cultural Factors: In many communities, open discussions about money are often considered taboo, hindering the transfer of financial knowledge across generations. (savvyladies.org)
Distrust of Financial Institutions: Approximately 60% of Black women report difficulty finding financial advisors they trust, with many citing a lack of culturally relevant services. (theamericancollege.edu)
Despite these obstacles, there's a growing movement among young women of color to reclaim financial empowerment. By acknowledging these challenges and seeking out culturally relevant resources, (https://www.tilled-soil.com/resources) you can take control of your financial future and change the narrative.
Navigating Common Pitfalls
As you navigate debt management, it's crucial to avoid common pitfalls that can derail your progress. One major mistake is missing payments, which can lead to additional fees and damage your credit score. Set reminders on your phone or use budgeting apps to keep track of due dates. Be cautious of taking on more debt to pay off existing debt—this often leads to a cycle that's hard to break. Instead, focus on living within your means and using any extra income to chip away at your debt..
- Impulse Spending: The impact of social media on spending habits.
- Neglecting Credit: Consequences of ignoring credit scores until later in life.
- Insufficient Awareness: Failing to understand financial terms and products.
Building Sustainable Financial Habits
Money Moves: Smart Financial Habits
What do the habits of a confident young lady look like? Glad you asked.. As young woman of color, you might face unique financial challenges, but with the right strategies, you can take control of your money and start creating the future you deserve.
Here's an outline with emojis!:
💰 Create a Budget That Works for You: Budgeting isn’t about restriction—it’s about intention and handling your business. Track your income, list your expenses, and give every dollar a job. Assign your dollars babygirl. Use apps or simple spreadsheets to create a plan that reflects your lifestyle and savings goals.
🎯 Set Realistic Savings Goals: Whether it’s a vacation, emergency fund, or future business, define your short-term and long-term goals. Break them into manageable steps and automate (not manually) your savings to make progress without stress.
📚 Invest in Financial Education: Knowledge is power. Explore resources that speak to your experience—like Journey to Launch, Brown Ambition, or books like Clever Girl Finance. There are countless free tools made for women of color ready to level up their money game. (Don't forget the FREE resources here at Tilled Soil)
🤝 Find Mentors & Financial Allies:You don’t have to do this alone. Seek out financial mentors, join online communities, or follow advisors who understand your journey. The right guidance can make a huge difference in how you build wealth and confidence.
Remember, building strong financial habits isn’t about being perfect—it’s about being consistent. Start small, stay curious, and celebrate every win along the way. Your financial glow-up is just beginning. 💸✨
Taking Control of Your Financial Future
Level Up Your Money Mindset
Getting right to it; managing your money isn’t just about spreadsheets, bills, and adulting-it’s about power, freedom, and choices. You’re stepping into a world where taking charge of your finances means taking charge of your future. And it all starts with shifting your mindset.
Let's skip ahead to the good part:
Start Early, Shine Longer: The earlier you start paying attention to your money, the more you set yourself up for long-term success. Whether you’re saving from a part-time job, a side hustle, or financial aid refunds—every dollar you manage now is practice for bigger goals ahead. Time is your best financial friend, especially when it comes to saving and investing. Start small. Start now.
Track Your Progress Like Locations: You can’t grow what you don’t know. Use budgeting apps, spreadsheets, or even a cute notebook to track your spending, savings, and debt. Check in with yourself monthly—what worked, what didn’t, and what needs tweaking? This habit builds financial self-awareness and keeps you in control.
Celebrate Every Win: Paid off a credit card? Hit your monthly savings goal? Said no to a shopping impulse? That’s a win, so keep track of it! Don’t wait for “big milestones” to be proud of yourself. Every smart money move is a step toward your goals—and you deserve to hype yourself up for every one of them.
Your Finances, Your Power: This isn’t just about money—it’s about owning your future. Proactive financial management means you’re not waiting for life to happen—you’re creating the life you want. So start now, stay consistent, and remember: every small step adds up to big change.
Conclusion: Step Into Your Power
What You’ve Gained
✅ A clear understanding of financial literacy basics
✅ Insight into challenges uniquely faced by women of color
✅ Awareness of common mistakes and how to avoid them
✅ Strategies to build and maintain healthy financial habits
✅ The power to confidently take control of your financial life
What’s Next? Start Today
Don’t wait for the “perfect time”—start now. Create that budget. Open that savings and investment account. Listen to that podcast. Make that first debt payment. Small steps lead to big changes, and every choice you make today builds the financial freedom you deserve tomorrow.
Celebrate your progress, keep showing up for yourself, and remember: financial wellness is a journey, not a destination. You are capable, you are powerful, and you are not alone.
You’ve got this—and your glow-up is already in motion.
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