92 | Financial Literacy 101: Why You Need It Now

Are you ready to take control of your money? In this episode, I'm breaking down the basics of financial literacy to help you make more sound financial choices and build a stronger financial future. Whether you’re just starting or looking to level up, I've got you covered! 

In this episode, we dive deep into the core elements of financial literacy that everyone needs to know. From understanding budgeting and debt management to shifting your mindset around money, I'm here to help you feel confident in making better financial decisions.

✨ Inside the episode, we dive into:

✔️ What is Financial Literacy?:  Understanding the basics and why it’s key to your financial health 

✔️Budgeting: Turning your income and expenses into freedom, not restriction 

✔️Investing in Yourself: Why investing in your knowledge and emotional well-being is the best return on investment 

✔️Debt Management: Understanding the energy behind your debt and how to manage it 

✔️Mindset Shifts: Shaping your thoughts and emotions to make better financial decisions 

Want to learn more? Here are your next steps:

Step 1: Join my FREE Facebook Community.

Connect, share, and learn how to master your money with other women just like you.

➡️ Join here: https://www.facebook.com/groups/941450038160915

Step 2: Grab your FREE Human Design chart

Curious what your Human Design chart reveals about how you're uniquely designed to make aligned financial decisions?

➡️ Get your chart here: https://generatealifewelllived.com/receive-your-human-design-chart

Step 3: Ready to transform your relationship with money and build true financial confidence?

Let’s create a strategy that feels aligned, intentional, and empowering—just for you.

➡️ Schedule your 1-hour Money Mastery Call here: https://generatealifewelllived.com/11-support

Money doesn't have to feel overwhelming. Let's create a strategy that feels nurturing and custom to you.

From my soul to yours,

Erin

Transcript

Erin Gray: 0:00

On today's podcast, we're going to be talking about something that can really transform the way that we feel about our finances financial literacy. And this isn't just about numbers, it's also about feeling empowered and confident in the way that we actually manage our money. So we're going to dive into what financial literacy really means, like what is the definition, why improving it can make such a positive difference in your life, and I want you to know that wherever you are on your financial journey. This episode is for you. I think, the more that I help women, the more that I talk to women women, the more that I have come to realize how often we really do juggle a lot of roles and when we can get really comfortable with money talking money, having money, making money, circulating money, like all of it right Just being comfortable with money, it really helps us take control of our financial life I think, also of our actual life and move forward with more ease and clarity, and so I'm excited to share how you can do this too. Do you want to create a system to stop avoiding your money? Maybe you're feeling guilt and shame when it comes to finances your money. Maybe you're feeling guilt and shame when it comes to finances.

Erin Gray: 1:26

Welcome to your Money, your Rules. I'm Erin, a former certified financial planner and CFO, and yet I used to avoid my money and had fear, no matter how much we had. I can't wait to teach you how I overcame my money avoidance and started consistently managing my finances in a really simple way. It's time to get comfortable with money. So let's talk about what exactly is financial literacy. So I actually turned to the Googles. I went online and I was like what is the actual definition? And Google defines it as financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting and investing, and what I truly believe is, when you are financially literate, you have an essential foundation for a really good relationship with money. This can help you start a lifelong journey of learning about financial aspects of your life and, for some of you that are maybe my age or older, I want you to know that it's never too late. We can always learn more, we can always improve our financial literacy, and I think that when we feel financially literate, we feel more confident, like I think that there is a direct correlation with what we know about our finances and understanding the way money works and our confidence in business, with our money and just overall in life. So let's talk about the kind of key components of financial literacy. So you've got budgeting, which I know that that word can be triggering for some of you. I know it has been for myself and some of my clients, because I feel like budgeting can feel like such a restrictive activity. But I really want you to reframe that and make it more about freedom and choice for you versus restriction. So, understanding your income, understanding your expenses, so that you can then make really sound financial decisions. And when I say sound financial decisions, I don't mean what someone else is suggesting to you, I mean what feels good to you in your body.

Erin Gray: 3:42

S and you know the financial industry would talks a lot about emergency funds and I really don't like that word. I think that we need to have a having account. I call it like having, like air quotes having account, because when we look at it from an emergency fund, I think that we're telling the universe that, hey, there's going to be an emergency coming up, but when you have a having account, right, you just have money there If you want to use it for you know, you could even have a separate travel account you could have, you know, separate kid account. You know you could have these different accounts and I think that when you have just a having account, you have it right. It gives us more of that sense of peace and security, versus telling the universe we're going to have an emergency and you know that's what we're, that's what we are in the vibration of and that's what we're, you know, sending out to the universe. So, having some type of cushion, some, some type of amount of money that feels good for you to have, just to have it in case you want to use it for something or something comes up so that you feel safe and secure.

Erin Gray: 4:51

Investing is another component. Think about ways to grow your wealth slowly, with patience, with strategy, with time, and this is going to look different for everyone. You know I've talked about, you know, maybe, the first 20 years, you know, from 20 to 40, we invested in some real estate and we invested in the stock market. But as I've kind of gone deeper into the stock market, I don't necessarily know that that's going to be a strategy that I continue to use, moving forward, and that's okay. It's just you understanding what is your investing strategy and loving your reasons right. I think the biggest investment that we can ever make is in ourself, in our brain, in our business, in our emotional wellbeing. That pays dividends way beyond what I think you, I think, the stock market or some real estate investment, because we have control over our mindset, over our emotional well-being, and I think that that pays, like I said, dividends and I think that's such a wise investment to invest in ourselves and I think that's such a wise investment to invest in ourselves.

Erin Gray: 6:05

I think a lot of women you know debt management is another component of financial literacy and I think a lot of times women look at debt in such a shameful or guilty place versus recognizing. You know, I had a client. She had some. She was a previous doctor and she had student loans. She had some she was a previous doctor and she had student loans and really helping her reframe that. Those loans helped her go to medical school, those loans helped her generate a very nice income for her family and so, recognizing that, you know, when we go into debt, that coming from the place of like, are we investing in ourselves and we're going to, you know, make that money back tenfold, 100 fold, or is the debt coming from a place of like I've just decided to go on a shopping spree and I spent the money right.

Erin Gray: 6:59

Very different energy of being in debt, and so really different energy of being in debt and so really understanding what kind of debt do you have, how do you actually feel about it, and then what is your plan moving forward to pay it off. And I truly believe you know like the financial industry really focuses on payoff debt first, but I don't think that that is necessarily the best advice and I don't think that there's advice for straight across the board for everybody, right, but I do think figuring out how to make more money is a much more valuable strategy because it has your mind thinking about abundance and growing versus focusing on debt. Also understanding, versus focusing on debt. Also understanding. You know financial products right, knowing how things work, like mortgages and loans and interest rates, and how that actually changes things for you, because you know the way that those things work Like. One of the things that we're working with our daughter right now is showing her, like my financial calculator and showing her how to actually calculate. Let's say, if she wanted to go get a car loan, what would that actually look like? And playing with different interest rates, and I think it's really important to understand how money, how finances, work, because we're, when you are making decisions yes, I truly believe in making decisions from your intuition, your that body place, but there are, but there is data that I want to receive in order to make decisions from my intuition and so really understanding how the stock market works, how real estate if you want to get into real estate works you know cryptocurrency is another big one right now you know, like, how does all of those things work so that you can make educated, confident decisions when you're wanting to grow your wealth?

Erin Gray: 9:07

And I think probably one of the biggest ones that gets overlooked a lot is your actual financial mindset and the emotions that you feel with money. I've been very candid on the podcast and have talked about how, maybe the first 20 years of my life, I would consider myself very financially literate, but emotionally I was bankrupt. I came from a very poverty conscious mentality, a very fear-based and scarcity mentality, not from an abundant, sufficient place, and I think that we need both. We need to understand what do we feel in our body and how is that having us navigate our financial life Is our emotions, because we're highly triggered by certain things or we're avoidant. How is that actually navigating and changing the way that we make our decisions? So, the beliefs that we hold around money, right, the feelings that we feel, the emotions that we feel, the thoughts that we hold about money right, the feelings that we feel, the emotions that we feel, the thoughts that we think those all impact and shape our actions when it comes to finances.

Erin Gray: 10:21

So, really getting clear on what is your money mindset, what do you feel when I'm talking about learning how to invest, or really getting you know, understanding a budget for you, or looking at different financial products? Like, what do you feel in your body when I'm starting to discuss some of this stuff? And if your body feels like it's tensing up and you're wanting to just turn off the podcast, I want you to, first and foremost, give yourself lots of love and grace, right? This isn't something that's talked about in schools. It's not something that's openly talked about, which I've talked, you know, have mentioned before, on purpose, I believe.

Erin Gray: 11:02

I really believe that at least in the Western world, we have kept financial information away from the masses on purpose, as a form of control. But with everything, like everything, it starts with just one step right, noticing what are your thoughts and beliefs around money, what are your emotions around money. And you know, financial literacy isn't just about knowing all of the technical stuff right, it's about developing the confidence to make those decisions that feel right for you, without the fear, without the guilt. And this doesn't happen overnight, right, which is fine. It has been a process for me. But recognizing that you can get there right, that you are willing to start making different choices so that you can be more financial literate. So I think you know there's a couple of reasons why financial literacy is so important.

Erin Gray: 12:04

And, first and foremost, I think it's one of my, one of my core values in my business is empowerment. Right, when we understand our finances, we step into a space of empowerment. I know I've talked about several times on the podcast, about, you know, looking for a car. I am highly confident when I go to like my husband does more of the actual like car research, but I am the finance girl and there is nothing that any finance department is going to be able to pull over me. So when I go to a car lot or when it really comes time to start negotiating, I feel very confident because I've already done my research, I already know what my interest rate is going to be, I already know all of the ins and outs and so there's nothing that any finance department is going to be able to tell me that I don't already know, haven't already made a decision on. And I think that when you come from that place of knowledge and understanding, you can feel very empowered when you're ready to make those decisions.

Erin Gray: 13:02

Right, and I think the flip side, you know, of why financial literacy is so important is because the consequences of lack of literacy, right, like I've talked to several women who have said, like I wish you know we can't go back and change time but like I wish someone would have taught me some of these things, I wish I would have known questions to ask, because who I am now or where I would be would be vastly different than where I currently am. And I think that there's always, like you know, the saying about like when's the best time to plant a tree? Yesterday? And then, if that's not the case, in planning a tree today. I think it's the same thing with financial literacy. You can always start today.

Erin Gray: 13:44

And you know, without understanding financial literacy, it's easy to feel disconnected from our money. Right, and I think it's a lot. That's where the shame and the guilt comes in with our money. That can then also lead to stress and avoidance. So when we don't understand what's going on with our money, when we abdicate our responsibility whether that be which I've seen with the spouses you abdicate your responsibility with your spouse, or you abdicate your responsibility with the CPA or your financial planner you know we're more likely to make decisions that may not be in our best alignment because we're kind of pushing it off on someone else like oh, so-and-so takes care of that, versus you being very clear on what is important to you understanding finances in your business.

Erin Gray: 14:31

Understanding finances in your business, understanding finances in your personal life and I think you know the impact on being an entrepreneur right, smart business investments. You know knowing where to allocate your funds to help your business grow in a sustainable way. This comes back to are you looking at your books consistently? Are you looking at your P and L? Do you know your profit margin? Are you throwing spaghetti at the wall or are you actually looking at things and knowing in what areas are you spending your money and are you getting an ROI for that Right, you know, being confident in your pricing. You know the value. They always didn't talk about like, oh, we'll charge what you're worth. I don't believe that. Charge what your perceived value is based on your years of experience, your expertise, the value that you bring to the table because of your knowledge, the, the amount of time that you save someone like that is the way that you price your offer. So let's talk about the common financial literacy gaps that we might experience and then how to actually improve it. Right, a lot of times women will say that number one they haven't been educated. Right, it's not in the school systems, it's not in college. Now, yes, with YouTube and books there's a plethora, and that that is a bonus, that is a benefit.

Erin Gray: 15:54

But growing up, you basically pretty much probably absorbed your relationship with money based on how your parents thought about it, right? So many of us have been taught to either not talk about money it's taboo, right, like you don't talk about money at the dinner table, or you don't ask people what they make or anything of that sort. Or, almost like this, you know fear and avoidance of money. Right, if, if money was a source of conflict, like how it was in my house if money was a constant source of conflict. What I grew up believing is, like money causes conflict with people. And then I also saw the benefit of it, right. So I had this very conflicted relationship with money. It's like, ooh, I see what money can do, I see I can, how it can be used as a tool, and also I see how it just like can rip apart, you know, a, a marriage or, uh, really have parents fighting with each other. So, depending on what you've learned about money, starting to really peel apart that onion and figure out what is my relationship with money, right?

Erin Gray: 17:02

So how do you start improving your financial literacy? I always say start with awareness, right, just go into your books in your company and see where your money is going. Look at your personal finances and see where your money is going right, just simply being aware. You don't have to change anything at first. Just simply being aware of where your money goes is really the first step to understanding what it's doing, where it's going, where it's coming from, starting to set financial goals right, start with. I always say start with something small because I think sometimes in the beginning, with our nervous system, if we start too big, we can shut ourselves down right, but if we start small and we start hitting those goals, just like a little kid with a sticker, just like a little kid with a sticker, this is the same thing for us. So, starting with something small and then, over time, growing those goals, obviously educating yourself there's so much information, you know, with podcasts, with books, with YouTube and make sure, I would say, make sure that you're really in line with the teacher, that you're learning right.

Erin Gray: 18:13

I mean, there are some people that are great real estate investors, but they're just not who I want to learn from right. So pick people that not just are successful financially in their life, but like what is their actual marriage? Like how do they treat their kids? Like I look at success as a whole entire package, not just, oh, this person knows how to make money. It's like great, you know how to make money, but if you have a terrible marriage and you treat your kids like shit, well, that's not success to me. So, really learning from people and and and that's not to say that you can't pick and choose and you know, kind of pull apart pieces from people that maybe don't have a great relationship with their kids or they don't have a great marriage. But I think that success and learning from someone a teacher, a mentor it's like how is their overall life right, not just the money part.

Erin Gray: 19:07

And I would say really get involved with your financial planner. You know if you have one and you're working with them and you've been abdicating responsibility with what they invest in for you. Yes, they might have conversations they're probably required, you know, to have conversations with you once or twice a year but really understanding, why are you suggesting this? Tell me more about this. You know investment and really getting because you're paying for their advice. Really start to understand and be a person at the table that wants to understand what's going on with your money. And the final piece is the mindset shift right For financial growth, like understanding your emotions when it comes to money. Right, your emotions when it comes to money, right.

Erin Gray: 19:55

Our so much of our relationship with money is deeply emotional. It's so intertwined and it's shaped on how we've grown up. It's shaped on past experiences. Maybe we've made some air quotes, mistakes in the past and so we judge ourselves for that. So we might be a little bit more gun shy, um, or societal messages, like I've heard women be like. Well, I don't want to be that wealthy. It's like, well, why not? Right? So really noticing when someone says something like, what does your body do in response to that comment? Or what you see on Instagram or YouTube, or what someone says, what is what is going on in your body? That will tell you how you're feeling.

Erin Gray: 20:33

And the beautiful thing is, we get to shift those beliefs right If they're not serving us. So you know, money beliefs that I've had is like you have to work really hard for money, or I might have to work harder than someone else, and so really starting to change the way that we think about those beliefs. Maybe you have a belief that money feels overwhelming, but switching it to be money, something that I can learn to understand one step at a time, or I'm in the process of learning how to understand money, right, if you've been someone who has said you know I'm not good with money. If you've been someone who has said you know I'm not good with money, thinking about reframing that and I can make progress and improve, no matter where I start. Right, think of all the things you've learned in your life. This is no different, it's just money. I've learned X, y, z and look at where I've come from, I can also learn money too. So a couple of mindset exercises maybe. That you can practice is daily affirmations, which I always suggest making sure that those affirmations are actually believable. If your body is rejecting what you're saying, then the affirmation and the neural pathways are not going to be built. So, starting with things like I'm capable of understanding how to manage my money, I'm learning how to manage my money, I'm in the process of learning how to manage my money Affirmations like that are very different and feel very different in the body than I'm excellent at managing my money. If you're, if you haven't been managing your money and now you are saying I'm excellent at it, the body is going to reject that right. So use more of a bridge thought, a uh, some words that are a little bit softer for your body to start believing.

Erin Gray: 22:27

I think journaling is always powerful. Sometimes I journal, sometimes I don't, and I think visualizing you know we all have an imagination. Whether or not we use it on a consistent basis, that's a different topic, but we all have. If I were to say right now, imagine a green tree. You can pull up a green tree in your mind. The same can be true for what kind of life you want, what kind of business you want to have, who you want to employ, how much money you want to make.

Erin Gray: 22:55

And I think for us really getting not just the physical things that we're visualizing, but like, how is that actually going to feel when you experience that? That's what we're going for? And so, really, you know, what does peace feel like in your body when you open up your bank account? What does ease feel like in your body? What does freedom to choose if you want to fly first class or not? What does that feel like in your body? Starting to really get connected to your body and feeling the feelings, because anything that we want it's because of the feeling we think we're going to have, right, but we can start experiencing those feelings right now, today, and that is actually what is going to create it, you know, quicker, faster, by feeling those feelings on a more consistent basis, being that person, okay, so, to recap, really thinking about where do you stand with financial literacy, right, Using it to empower you to take control of your money, to help reduce stress. The more educated you are, the more knowledgeable you are. That can help reduce anxiety and stress about money, understanding it and also help you grow your business right.

Erin Gray: 24:17

When you understand how taxes work, you get to start not fearing sitting down at tax time or tax planning right Like that becomes a more excitable is that the word Excitable exciting experience because you understand how taxes work. And I want you to remember that it's not about perfection. I don't believe perfection exists. It's really about progress. Are you 1% better than you were yesterday and are you making a conscious effort to be more connected with your money? I invite you to take one small step today. Maybe it's tracking your spending for a week, like we talked about, or maybe it's about learning one new financial concept, or emailing your financial advisor or planner and asking them tell me what kind of investments that I'm currently invested in. Just starting there, right, just take that first step. No pressure, just progress. One step that you can take to start to understand your money a little bit better than you do already, and I want to offer.

Erin Gray: 25:21

I've recently started a Facebook community, so if you are looking for a community of women that are working through this very thing, where you want to be able to show up in a safe space to talk about money, I would love to invite you to my Facebook community where you can come and connect and share, because I truly believe that we all need a safe space to talk about money. I will put the link in the show notes. The Facebook group is Money Mindset Tips for Women in Business. I would love to have you love to talk about money and really start changing our relationship with money. Thank you again for joining me today, for listening, and I'll see you in the next episode. Did you learn something today? Do you know another female entrepreneur who might be avoiding her money? Will you send this episode over to her for me and, if you have it in you, please leave me a review for this podcast. It helps the show grow and I love hearing from you. See you next week.