Planning programs to help communities is only half of the problem solved by governments. The other half is finding the funds to pay for those projects. One of the ways to help is by encouraging everyone to attain financial literacy; for themselves, for their families, and for their community.
People having a fiscally sound plan in every aspect of their life can reduce stress, anxiety, and debt. They will need less government assistance because they will be aware of the precautions they need to take to be financially resilient no matter what happens. The preparedness of any community members is a good indicator of how well they have developed and progressed. This is indicated through better business management of entrepreneurs in the area, monetary stability of those living there, and more funding for programs available to everyone.
Better Business Management
Those who are fiscally responsible know how to manage the cash flow of the business to keep it all afloat. They will be less likely to make decisions without a risk assessment of the options first, placing the venture in a desirable position for investments later on. Thriving businesses can increase employment in the area and provide competition for existing players in the market, lowering the prices of products and services for consumers.
Financial literacy can help budding entrepreneurs reach their goal of starting a business because they will be able to save up for the capital. The ownership of the venture can then be truly theirs, and they will not have to rely on investors who can have a say in the direction of their company. With the help of professional business financial consultants, those undertaking the risks of a business can truly take control of their goals.
Fiscally Resilient Members of the Community
When more people in a neighborhood are financially stable, they will not need as much help from the government compared to other community members. They will have an emergency fund ready for them. This allows aid to be directed toward those who need it the most. It will also increase the funds that can be allocated to other programs since the government will have to provide less relief.
Being financially resilient is not a common trait these days. As it stands, 66% of millennials do not have anything saved for retirement. No matter how employers incentivize their employees to set some money aside, it should ultimately be up to the person to prepare for their own retirement. They can take the steps necessary to retire early. With the growing debt of millennials, it is no surprise that they are finding it difficult to do so.
More Funded Programs
With more financially resilient neighbors and thriving entrepreneurs in the area, the government will be able to collect more taxes and, in turn, fund projects that can be directed toward the betterment of the community. For instance, the money that would otherwise be sent out in relief or as a stimulus can be used to beautify the park or the neighborhood. It can even help improve emergency responses or cover medical expenses for some people who need the aid.
Financial literacy will also allow the government to aim toward improved handling of levies and work toward the point of reducing the overall taxes in the area by investing extra funds. Money can then be geared to funding ameliorated education not just for the students but also for older community members. For example, commissioning local artists to make sculptures can help boost morale.
Overall, financial literacy promotes community-building by the members themselves. It creates a shared sense of responsibility, encouraging resiliency at a community level. There is teamwork required in improving the services provided by the government, and it should not be solely on the shoulders of government employees. The best way a citizen can participate in improving their area is to be financially stable themselves. A public can thrive best when they are working together and with the governing body.
There will be less theft, fewer homeless individuals, and fewer malnourished youth. The overall mental health of people in a neighborhood will be better because they will benefit from holistic government services. They will be better taken care of. It is a resulting ripple effect of the financial literacy of a community that can make it happen. For an area to truly progress, there must be funding. Many government officials can have brilliant ideas and mean well when they finally take office, but they can only do so much without the resources they need to make things happen.