According to Jean Chatzky, the best way to get smart about money is “just by doing it.”
When a Redditor asked how best to become “financially savvy,” she elaborated on her advice, writing:
In other words, opening a retirement account — an IRA, 401(k), etc. — investing some money in low-cost index funds or a target date fund that will rebalance in accordance with your age/retirement date and then paying attention to it.
Chatzky also suggested becoming financially literate by joining the conversation about money and asking questions when you don’t understand or when you want to know more. You don’t have to be an expert from the beginning, she says.
I was an English major and didn’t know anything when I started out. I learned by reporting for magazines like money and smart money and turned my financial life around in the process. And I learned that when I didn’t understand something, to keep asking until I got an answer that made sense to me.
“If you have a stake in the game, you’re more likely to want to learn and therefore to learn,” she writes. “But the other thing you can do is start taking part in the conversation.”