Knowledge is power, but that power can’t be exercised until investors put it into motion. "Often, financial wellness improves as financial literacy develops," Felton said. "That’s because savers learn the steps, start taking action, and then start to see progress toward short- and long-term goals."
That sentiment is consistent with the findings in the FINRA foundation study. People who score higher on financial literacy measures are more likely to spend less than they earn, to have an emergency cash cushion, and to have calculated their retirement savings needs.
That all points to the critical component of taking action that’s needed to yield results. That’s true when building a budget, paying down debt, or launching a long-term retirement savings strategy. The learning is an important part of the process, but it’s the doing that has true impact.