![]() You don’t need lots of money to be financially fit-after all, there are plenty of people with money who aren’t financially fit-but you must build your skills and knowledge base “about money, savings, spending, credit, investing, and everything else people do with money. You have to obtain information, knowledge and skills and apply them so you can make good choices about how you treat your money and how your money treats you” (AFOA BC, 2011, p. Just like it takes effort to become and remain physically fit, it takes effort to become financially fit: “you have to train. The AFOA BC equates financial literacy with financial fitness: “when you are financially fit you are able to make informed choices about finances and you understand how your choices are going to impact your wallet and your life” (AFOA BC, 2011, p. Life can never be planned entirely, of course, and the best-laid plans can go awry, but anticipating risks and protecting against them can minimize your exposure to the inevitable mistakes and ups and downs of life that we all experience. The better your understanding, the better your ability to plan, take advantage of opportunities, and avoid disappointments. Making good financial decisions is largely a matter of understanding how the economy works, how money flows through it, and how other people make financial decisions. There is no trick to managing your personal finances. In other words, personal finance is about learning how to achieve your goals and how to protect what is important to you. It is about creating productive assets-that is, resources that can be used to create future economic benefit, such as increasing income, decreasing expenses, or storing wealth, as an investment, and about protecting existing and expected value in those assets. Personal finance addresses the “great difficulty” of getting a little money. Adam Smith, The Wealth of Nations (1776) The great difficulty is to get that little. When you have got a little, it is often easy to get more. ![]()
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