Five Everyday Reasons You Need To Know Math
North American Precis Syndicate
The better you understand numbers, the better able you'll be to plan for your financial future. (NAPS)
(NAPSI)—Many people may shy away from the subject of math, but it is
important to understand math as it plays an instrumental role in making good
financial decisions. A new University of Phoenix® survey found
that 28 percent of respondents reported they were not confident that their
current math skills are strong enough to succeed in planning for retirement
and 24 percent stated they are not confident in their skills to succeed in
understanding tuition assistance and save or pay for college. Additionally,
35 percent are not confident that their math skills were solid enough to
start a business.
Susan Hadley, Ph.D., program dean for general education at University of Phoenix, says that people could be
taking a financial hit as a result of not understanding basic math and the
role it plays in financial decision making.
"Having a foundational knowledge of math helps people make informed
purchases for major investments and expenses as well as everyday spending and
saving decisions," Dr. Hadley said. "Being comfortable with math is necessary
and deeply relevant to our personal and professional lives. As a result, we've
gone to great lengths to incorporate math into our undergraduate programs as
it relates to everyday financial decisions."
Dr. Hadley provides financial tips for areas where math skills are
1. Building a budget—A monthly
budget helps allot money for fixed expenses like mortgage payments as well as
how to plan for expenses that may vary from month to month, such as
groceries. Also knowing how much to dedicate each month for long-term savings
is helpful. Having this information can set the stage for making wise
2. Renting vs. buying a home—There
is no one-size-fits-all answer on whether to purchase a home or rent.
Research the real estate market in the area where you want to live. Determine
the mortgage or rent payment and the impact both options have on your
lifestyle and short- and long-term financial goals. Review your budget to
understand the financial implications of each choice.
3. Buying a car—People often
assume that a vehicle is an investment. However, vehicles quickly depreciate.
Be mindful of how much you are able to spend, financing options and, if you
decide to take a loan to make the purchase, what you will pay in interest
over the life of the loan.
4. Saving for college tuition—Start
planning early if you intend to send your child to college and will assume
responsibility for the cost or if you're planning on going back to school
yourself. Knowing the tuition breakdown per semester, costs for materials and
living expenses will help you factor them into your monthly budget and
savings goals. Searching for scholarship and grant opportunities and
researching student loan options will help with making sure you don't
overleverage and can repay those loans in full and on time.
5. Planning for retirement—Review
your budget regularly and determine what percentage of each paycheck you can
contribute to a 401(k) or individual retirement account (IRA) to save for
retirement. When determining the best strategy for building your retirement
savings, consult a financial adviser.
It's Never Too Late
Whether for business decisions or everyday life, it's never too late to
learn new things or refresh what you've already learned. Consider taking a
course that reviews mathematical concepts, economics, accounting and finance
applications for everyday life. Being comfortable with math will help you
determine how you can better allocate your money to make it work for you
while making better-informed decisions.
On the Net:North American Precis Syndicate, Inc.(NAPSI)