Understand your pay and benefits to make the most out of what you earn. (UBS)

Over the past few months, we have seen turbulent markets, geopolitical tensions, decade-high inflation, and the Fed taking rates higher. With so much uncertainty, it’s a good time to check in on your finances and make sure you are still on track to meet your financial goals.


Financial literacy is often thought of as having the skills and knowledge to manage money effectively, so that you can best fulfill your goals.


According to the US Financial Literacy and Education Commission, there are 5 principles of financial literacy. As you go through the list below, think about ways you can improve or change your habits to create a healthier financial situation. Explore UBS’s interactive guides on each topic.


1. Earn. Understand your pay and benefits to make the most out of what you earn. Take advantage of your workplace benefits and your company’s match policy for your 401(k) account. Check out the interactive guide on planning for retirement.


2. Save and invest. Save for future goals, like buying a house or retirement. Creating a budget can help you start working towards your aspirations, even if you need to start small.


3. Protect. Take steps to safeguard yourself in case of unexpected emergencies, which can be very costly. This includes accumulating an emergency savings fund and making sure you have the insurance you need.


4. Spend. Be sure you are a getting good value for your purchases by shopping around and comparing your options. When considering large purchases, determine whether it is a need or a want and make sure you are living within your means. Other tips for developing healthy financial habits can be found on the interactive guide.


5. Borrow. Borrowing money enables essential purchases, like going to college or buying a home. When considering taking on debt, make sure you are prepared to manage it. Not all debt is bad -- it can also help you grow your wealth by providing liquidity needs, while your investments grow.


If you’re feeling behind, don’t stress. Financial literacy levels vary across the United States with only a small majority (64%) of adults in high-income households feeling financially literate. You can talk to your Advisor to come up with a plan that will help you be confident in your finances and explore more at www.ubs.com/rising.


Main contributor: Kylie Saigol