Let’s use Crypto Craze as a stepping stone towards better financial literacy

From Super Bowl ads to a big city Mayors Get Paid in CryptocurrencyIt has become impossible to ignore the rise of cryptocurrencies, the digital asset that some have described as the future of finance. One in five Americans trades, invests in, or uses cryptocurrencies, according to Latest NBC News Poll.

Cryptocurrencies, a decentralized financial asset built on the blockchain, are generating excitement and activity with new investors, from Baby Boomers to Gen Z. It has also helped highlight the general public’s need for financial literacy.

The truth is that improving your financial literacy can have benefits beyond your pocketbook: Harvard researchers It found that increased financial literacy contributes to better mental and physical health and is associated with a lower risk of depression.

If you want to improve your financial literacy, here are three important lessons to keep in mind:

Don’t let market volatility put you under pressure
between high inflation With interest rates and continuing uncertainty about the war in Ukraine, financial markets have been on a whirl for the past few months. When your portfolio loses value quickly, it can be tempting to bail out the markets entirely. But do not panic – carefully consider all the available options, Including staying diverse And not making big changes to your portfolio, especially for long-term investors.

Market timing – knowing exactly when to enter and exit to minimize losses and maximize potential gains – is almost impossible, even for professional investors. During the ups and downs, it’s important to remember that when you’re in it for the long haul, your daily scales shouldn’t be the focus.

Market volatility is a normal part of investing and should not trigger panic or sudden changes in your investments if you take a long-term approach.

Rely on your community

Building your financial literacy can be overwhelming if you don’t have a background in financial subjects – Even if Dogecoin memes abound. But you can access resources that can help you get started. Programs in your local community can be a crucial (and often overlooked) financial lifeline for individuals worried about money and the future. You may find that you have more resources available to you than you realize.

Find out what’s happening in your town or city when it comes to financial internships or courses, especially at a local college or nonprofit organization. There are also resources such as Financial Health Network It can help you on your financial literacy journey. Or you can turn to your financial advisor or workplace benefits provider for additional content or materials that can help you improve your financial education.

Conversation starters – talk about money

While many of us have grown up knowing that it is taboo or impolite to talk about money, staying silent about your financial concerns or questions can have a negative impact. While it can be awkward to talk about money at first, it gets easier over time.

It is especially important to be transparent and Open with your partner about money, which can prevent future financial conflict. If you have children, be sure to include them in Discussions about Finance Also, because open conversations about finances can help them develop a healthy relationship with money as they get older.

Beyond your personal financial education, seeking advice and resources from online, virtual, or in-person financial professionals can help reaffirm your learning and be an important tool in starting, updating, or maintaining your financial security.

While cryptocurrency has sparked your interest in financial literacy, learning about the broader financial markets is a smart move. Once you have a better understanding of how money works, you can begin to put in place actions and behaviors to improve or protect your financial situation.

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Head, Retail Consulting and Solutions, Prudential

Brad Hearn is Head of Retail Advisory & Solutions, which combines the exceptional face-to-face advising expertise of Prudential Advisors with a hybrid Prudential advisory team and digital advice capabilities – creating a single organization with overall accountability for comprehensive service delivery. Consulting and financial solutions across the entire advisory chain.