Economic literacy certainly contributes to the first class of knowledge. People like to think and talk about the economic issues that affect them as consumers, workers, producers, investors, citizens and in other roles they assume over a lifetime. Economic literacy also gives people the tools for understanding their economic world and how to interpret events that will either directly or indirectly affect them. Nations benefit from having an economically literate population because it improves the public's ability to comprehend and evaluate critical issues. This understanding is especially important in democracies that rely on the active support and involvement of its citizens.

As a parent. I’ve found that it’s best to keep lessons simple. Kids are interested in investing when the lessons are appropriately framed. Here are some strategies that you can use to teach your children or grandchildren about saving and investing.

The best investment you can make is in yourself and your financial education. It's the obvious starting point for building wealth.

As you begin building wealth and establishing an investment portfolio, you want to be very active in diversifying your investments as well. Diversifying Your Investments. This is an essential process to help ensure your assets are not too heavily focused in one area, which could be disastrous for you as the market shifts. Sure, when the market is thriving it is hard to imagine anything but amazing gains as you see your portfolio soar. But inevitably, there will be stock market corrections and even bear markets that can quickly wipe out your happy gains. And the best way to protect your investments and ignore the financial roller coaster is by having a well-diversified portfolio.