Financial education is not the most fun topic in the world, but it is important. Knowing how to effectively and efficiently do things like plan, budget and save, especially early on in life, can really set you up for financial success – or at least lessen the chances of you putting yourself in a not so desirable situation money wise.
Ever heard the statement ‘When you know better, you’ll do better?’ That’s sort of what financial literacy is about. Having the information to be able to make sound decisions.
If you know how interest works, you’ll be more likely to pay off your credit card balances, or opt for a cheaper, used car, instead of the newest on the market. If you know how putting a little money away today can help you in the future, you’re more likely to do so. If you’re aware of 401(k) plans, and how to go about investing in them, you’re more likely to start putting away sooner, rather than later.
There is a common misperception that making a lot of money will lead to financial freedom. Although more income gives you a cushion to save and take risks, you can still struggle if your finances are managed incorrectly – see these celebrities who learned the hard way here.
However, there are plenty of celebrities that you can take a few personal finance lessons from.
Jay Leno – “When I was a kid, I had two jobs. I worked at a Ford dealership and at a McDonald’s. I’d spend the money from one job and save the money from the other. That’s still the way I am now. I live on the money I make as a comedian, and I put all the TV money in the bank. I’ve never spent a dime of TV money — ever.”
Kawhi Leonard – NBA player for the San Antonio Spurs, who recently renewed his contract for $94 million dollars is probably one of the most frugal athletes ever. Can you believe he still drives the same 1997 Chevy Tahoe that he drove in high school? When asked about this, his response is ‘It runs, and it’s paid off.’ He also sponsors WingStop by showing support on social media and frequenting the San Antonio location, and reportedly freaks out when he loses his coupons for his favorite chicken wings – Mango Habenero.
Justin Timberlake – “I will just say that I am pretty frugal. I’ll probably shop [for clothes] for myself once a year, and that will last me for the rest of the year. What was it that Prince said? ‘Money can’t buy you happiness, but it can help pay for the pursuit.’”
Jennifer Lawrence – Although worth millions, Lawrence says “I was raised to have value for money, to have respect for money, even though you have a lot of it.” Instead of choosing a Range Rover or other luxury vehicle like many A-listers, Lawrence can be seen rolling in a Chevy Volt.
Invest and Diversify:
Jay-Z, worth an estimated $810 million dollars, is much more than a musician. He is an investor in several tech start-ups, owner of streaming service, Tidal, a luxury beverage and nightclub, holds stake in the Brooklyn Nets NBA team, owns the exclusive rights to his music, and much, much more.
See more money wise celebrities and what they have to say, here.