What is a bounced check? It’s one of those terms that a lot of people have heard, but not as many can explain. And the impacts of a bounced check can seem equally mysterious!

Of course, it’s important to understand all of these things, so you can avoid being put in a messy financial situation. Whether you’re the writer or depositor of a bounced check, it can have impacts on your finances.

So much in life is unexpected, but a bounced check doesn’t need to be one of them. In this article, we’ll answer questions like: what is a bounced check? What happens if a check bounces after I deposit it? How can I avoid writing a check that ends up bouncing? Let’s start learning!

What is a bounced check?

A bounced check, also known as a “rubber check,” is essentially a check that cannot be honored by a bank. This typically happens when the account holder has insufficient funds to cover the amount of the check.

Less commonly, a check can bounce if the check writer tells the bank to “stop payment” on it—even if there is enough money in the account.

When someone writes a check, they are essentially instructing their bank to transfer a specific sum of money from their account to the recipient’s account.

However, if there isn’t enough money in the account to fulfill this request, the check bounces. In turn, this can lead to a cascade of consequences for both the payer and the payee.

Bouncing a check is not always intentional. It can happen for various reasons, such as an unexpected expense, a miscalculation of available funds, or a delay in depositing money into the account. While these situations can be genuine mistakes, they can still carry financial repercussions.

What happens if a check bounces?

Your check can bounce when the amount in your checking account is less than the value of the check amount you wrote. If the receiver tries to cash or deposit your check before there’s enough to cover the full amount, the check will bounce due to “non-sufficient funds” (NSF).

When you write a check that bounces, you’ll probably be a bit embarrassed. While it’s not always your fault (maybe an automatic withdrawal happened before an automatic deposit cleared), you’ll still have to deal with the consequences. 

Let’s look at a few potential things that can happen.

Possible fees

One of the most immediate drawbacks of a bounced check are the fees that come with it.

Non-sufficient fund fee (aka NSF fee)

A non-sufficient funds fee is exactly what it sounds like. A financial institution charges an NSF fee when a check cannot be honored due to insufficient funds in the account. Normally, this type of returned check fee applies to the account holder who wrote the check.

Each state decides the fees owed for check payments that are returned for lack of funds. These “recovery costs” generally range from $20 to $40. Most of the time, you’ll pay a flat rate, but a few states base the fee on a percentage of the amount of the check.

Fees for non-sufficient funds are like a bad chicken-or-egg scenario. If you wrote the check and truly don’t have enough money to cover the cost, then with the new fees, you can go into debt over not being able to pay. That makes it even harder to right the wrong and pay the original amount you owed.

Merchant fees

In certain cases, merchants may charge additional fees for bounced checks. These fees are imposed to compensate for the inconvenience and potential costs incurred by the merchant when a payment does not clear. 

$30 is the average bounced-check fee from merchants. That said, in most states, they’re allowed to charge up to $40.

Overdraft fees

If you don’t have enough money in your account, but your bank covers the check for you instead of bouncing it, you may face an overdraft fee instead of an NSF fee.

When an account holder attempts to make a payment that exceeds their available balance, the bank may cover the difference through overdraft protection. This service is designed to prevent declined transactions due to insufficient funds.

However, this service often comes with a price—the overdraft fee. This fee applies when the account balance goes below zero, and the bank extends credit to cover the transaction.

Overdraft fees can also come into play if you deposited a bad check and didn’t realize it. You may assume you have more money in the account than you actually do, because the check bounced. Then, you might accidentally overdraw your account and incur a fee.

Some banks offer overdraft alerts or allow customers to link their accounts to savings to prevent overdraft situations.

Impact on your credit report & banking relationships

While your primary credit report will likely remain unaffected by your bounced check, some “alternative” checking account reporting companies, like ChexSystems or Telecheck, might ding you.

As a result, banks can deny your request to open a checking account if you have any red flags from these companies. In this case, be sure to ask for the report to make sure there aren’t any errors. You can also ask for a free report if you receive an “adverse action” notice, which the bank has to provide you if they turn you down.

Since a negative banking history may make it more challenging to open new accounts, it can also make it hard to build credit.

In the case of a loan payment, a bounced check is a bigger deal and could affect your main credit score. When your check bounces, it means that the transaction technically never went through. Unless you tried to pay early, that likely means you either missed a monthly payment or were late.

This unpaid balance could get you in trouble with a collection agency, which might report you to the credit bureaus. This is a fast track to lower credit scores.

Late payments will stay on your record for seven years, which can affect other loan eligibility and even insurance rates. Your top priority should be to get back on track with your original payment schedule.

Potential legal action against you

In addition to your credit score, debt collectors could mean bad news legally. Just like the recovery fees, each state determines the legal action you may face. You could be dealing with civil or criminal charges, ranging from a misdemeanor to a felony.

With civil charges, you’re in store for even more fees. (Remember that horrible cycle of being charged for having no money? It gets worse.) You might be able to avoid these charges if you can plead your case to the recipient before they file a lawsuit.

If you don’t reach them in time or they aren’t sympathetic to your situation, you’ll probably have to pay legal fees for yourself and them, as well as additional penalties.

In a criminal case, even higher fees might be in your future, along with a mark on your permanent record. In extreme cases, you might even go to jail. Usually, the amount of the check determines whether it is prosecuted as a misdemeanor or a felony. 

If someone is threatening you with criminal charges, be sure to seek legal counsel before things escalate.

Expert tip: Always negotiate fees

In some cases, banks (or merchants) may be willing to waive certain fees associated with bounced checks, especially if it’s a rare occurrence.

Contact them, explain the situation, and inquire about the possibility of fee waivers. Be gracious and understanding, even if they aren’t able to accommodate you this time.

Establishing a good rapport with your financial institution can lead to more favorable outcomes in lots of situations. Whether it’s waived fees, higher credit limits, or a better rate on a loan, it never hurts to get in touch and ask!

Steps to take if you bounce a check

Discovering that a check you wrote has bounced can be a stressful situation, but it’s essential to approach it with a proactive mindset.

In this section, we’ll outline practical steps to take if you find yourself in the unfortunate circumstance of having a check bounce. 

1. Contact the person you wrote the check to (and the bank) 

It may feel like an uphill battle, but you need to take fast action. Contact your bank and the payee (the person you gave the check to) as soon as you realize the check will bounce or has already. Make sure you’re all on the same page—that you’re going to make things right as quickly as possible.

2. Deposit funds as soon as possible

Deposit funds into your account as soon as you’re able. Decide if you can pull from a different account or even borrow from a loved one. Speed is key here. If you’re lucky, you’ll be able to deposit enough funds before the check officially bounces.

If you have multiple bank accounts at the same financial institution, you might also be able to arrange for your bank to pull money from your savings account in the case of insufficient funds in your checking account.

Note: An electronic transfer or check deposit might be immediate, or it could take days to hit your account. To be extra safe, bring cash to your bank branch in person.

3. Figure out what you’ll owe in fees

Next, figure out how much you’re going to owe in returned check fees. Work to bring your account current ASAP to avoid any additional fees.

While you’re at it, look into overdraft protection to avoid facing this situation again. With this protection, your bank will cover the amount of your bad check (up to a certain amount). Then, you’ll simply pay the overdraft fees to the bank, rather than suffering any additional processes or penalties.

The overdraft fees might even cost you less than bounced-check fees without protection, which you would possibly owe to retailers and your bank.

How to avoid having a bounced check

With technology speeding up the exchange of funds, you can no longer write a check and cross your fingers that the recipient will wait a few days to get to the bank. After all, they might just snap a picture from their phone to deposit it!

That said, if you realize after writing the check that you’re not in the clear, consider reaching out to the person or business and asking for a bit of a grace period. They may be willing to wait to process the check until you can refill your account with funds.

However, the best line of defense is good personal finance habits from the get-go. Here are a few tips that can help you avoid writing a bounced check in the first place.

Create a budget

Plan, then plan some more. Map out recurring expenses and income. Leave a cushion for unexpected costs. (You might not know the amounts and causes, but you can bet on something unforeseen popping up. Pencil that in.) Your budget is a useful framework to keep you in line with your priorities and means.

Build up your savings  

In your budget, consider how you can make room for savings. Every little bit helps and it adds up over time. Focus on building up your emergency fund and rainy day fund.

Your savings will help you avoid a crisis that sets you up for writing a bad check. It’s so reassuring to have money to fall back on when things go awry.

Balance your checkbook 

Keep your checkbook in check by setting money dates with yourself, and potentially your partner if you share bank accounts. Balancing your checkbook is especially important if you use a debit card or share an account with someone because your account balance may be different from when you last looked.

You need to have a handle on what’s going out and what’s coming in to see if your budget and savings are on track.

What happens if I deposit a check that bounces?

If someone else wrote you a check that bounces, it means the funds will never settle, or “clear,” in your account. 

The money might show up temporarily (depending on your bank’s procedures for pending deposits), but it will leave your account once the check officially bounces. Sometimes, the bank will also charge you a returned check fee or impose other penalties for depositing the bad check.

Your bank may notify you about the bounced check, but they are not required to. It’s important to monitor your own accounts to make sure the funds from a check clear in your account. This way, you can also protect yourself from spending money you don’t actually have (hello, overdrafts!).

Do you still get paid if a check bounces?

No, you won’t get paid if a check bounces. Since the money from a bounced check will never clear in your account, the person who wrote it will still owe you the money. They’ll need to send another payment—whether this is a new check or a different form of money transfer.

If you deposited a check that bounced, get in touch with the person who was trying to pay you. Hopefully, they’ll work with you to resolve it quickly. In a worst-case scenario where they refuse to reissue payment, you might have to pursue legal action.

Do bounced checks affect your credit?

What happens if a check bounces as far as your credit is concerned? Whether you were the payer or payee, can it ding your score?

The good news is, bounced checks themselves do not typically appear on credit reports. Credit bureaus primarily focus on credit-related activities such as loans, credit card payments, and debt collections. 

However, as we touched on earlier, the consequences of bounced checks can indirectly affect credit scores if they lead to a damaged banking relationship or other financial problems.

In extreme cases where a bounced check remains unresolved, the payee or the bank may take legal action to recover the funds. If the matter escalates to collections or court, your credit score can suffer significantly. 

To protect your credit, it’s crucial to address bounced checks as soon as you can.

Planning will help you avoid having a bounced check

Living within your means is important for your financial and mental health. So when times are tight, be extra sure you have the funds before writing a bad check. When your check bounces, it costs you more time, money, and energy in the long run.

Even if you work hard to avoid having non-sufficient funds in your account, accidents can happen. If a bounced check leaves your checkbook, don’t despair! Be proactive in handling the aftermath as quickly as possible, resolve the situation, and move forward with renewed confidence.

The post What Happens If You Have A Bounced Check? appeared first on Clever Girl Finance.

Retail therapy might be your old standby, but that doesn’t mean it always has to be. Instead, consider a more minimalist and classic wardrobe to protect your budget and your closet space. Whether you go for a strict capsule wardrobe, choose to become a fashion minimalist, or simply invest in better items less often, your budget will love the refresh. The best place to start is with minimalist clothing brands.

With minimalist clothing brands, you won’t just save money and help the planet, you’ll also create a wardrobe that is unique to you and allows you to create multiple outfits. This list will help you get started. That said, be sure to always research brands to make sure they align with your values before buying from them.

Why minimalist clothing brands are worth it

Minimalist brands often care about more than just the clothing they make. They’re also invested in helping others and creating items that last a long time. Here are the benefits of a minimalist wardrobe:

Items are made to last

Minimalist fashion brands focus on top quality and a tight supply chain. You might pay a bit more, but you’ll be buying items that you can wear for years.

Since these minimal clothing brands tend to focus on classic pieces and avoid fast fashion, you can find something you really love that will be wearable for many seasons instead of wearing it twice and then doing a closet purge.

Minimalist brands focus beyond just profits

Minimalist fashion brands can also have many different focuses. These brands may help you learn how to build a capsule wardrobe or invest in multi-functional clothing so that you can buy fewer items.

They may focus on better materials and craftsmanship or use evergreen designs instead of trendy styles. They could also focus on small batches that are high ticket but don’t go to waste because they don’t produce in surplus.

Overall, minimalist brands tend to have a focus beyond just making money.

You save money in the long run

Though buying from high-quality companies may at first be more expensive, you can save money on your wardrobe over time.

First of all, you’ll have fewer items when you choose to go minimalist. Additionally, you could pay more upfront but less money replacing items over the years, as they will last much longer.

27 Minimalist clothing brands to check out!

Remember that minimalism and living a minimalist lifestyle don’t have a set definition. So it can mean anything you want for whatever phase of your life.

Personal style is super subjective, but so is your budget. That said, here are 27 minimalist fashion brands with different prices to get you started!

1. Vetta: The archive shop

Vetta aims for a “thoughtful wardrobe” through capsules.

Likewise, mix and match is the name of their game. They have pre-made capsules with five garments that can be styled into 30 outfits.

Though the online store has closed, you can still buy Vetta pieces by shopping at their second-hand store. It might take a bit of work, but you can find thoughtfully made designs that you’ll love.

Affordability ranking: Under $100

2. Encircled

Encircled creates comfortable workwear staple pieces. They’re a B Corp, Canadian-based brand.

Although their clothes are a bit too casual for a corporate job, if you have flexibility in what you wear to work, this could be a great place to build outfits you’ll actually want to wear all day long.

Affordability ranking: Under $300

3. Cuyana

Cuyana offers luxe basics you can dress up or down. So they focus on natural fibers, have a “fewer, better” philosophy with their classic items, and even sell accessories. The brand offers a sophisticated but minimal look.

In addition, they’re women of color founded and a woman-led company.

Affordability ranking: Under $300

4. Pact

Pact is an affordable organic cotton minimalist clothing brand. They’re also Fair Trade certified and have tons of comfy basics and loungewear. Their casual basics are the perfect thing for everyday wear.

Their items are great to stock up on if you want to be fashionable on a budget, especially during the sale season!

Affordability ranking: Under $100

5. Universal Standard

Universal Standard is a female-founded brand that’s all about size inclusivity and good fit. Their clothing is made to last and is also available in a wide range of sizes from 00 to 40.

As a result, this makes Universal Standard more inclusive size-wise than many other brands.

In addition, the brand’s Fit Liberty collection allows you to swap out purchased clothing for a different size within one year.

Affordability ranking: Under $300

6. Everlane

Everlane has made a pledge to “radical transparency” and the choice to showcase their factories.

The brand also promotes a “no new plastic” campaign, which focuses on the use of sustainable materials for its products.

In addition, their clothing features timeless yet modern designs and fabrics that have become important pieces for city dwellers, and it’s a great minimal clothing brand.

Affordability ranking: Under $200

7. COS

COS is a brand that sells elevated essentials as well as basic cuts and colors that stay in style. They aim for their clothes to carry you through the years instead of focusing on trends, making a minimalist lifestyle easier.

Additionally, sourcing is also critical to the brand, and they explain it in detail on their sustainability page, so COS is another minimalist clothing brand that is pretty popular.

Affordability ranking: Under $200

8. Amour Vert

Amour Vert has sustainability at its core. They have a “give-back” program where one t-shirt sold equals one tree planted, and their packaging is also compostable.

With a strong focus on fabric manufacturing and treatment, they even sell a zero-waste collection. Overall, the Amour Vert style is laid back and feminine, and you can find some iconic pieces for your wardrobe.

Affordability ranking: Under $300

9. Able

Able is a brand that creates ethically-made clothing and accessories with a specialty in leather goods. Worker empowerment is a focus for Able.

As a result, they have the commitment to post their wages publicly.

96% of their Nashville staff identify as women. While their jewelry is made in the U.S., handbags are made by women in Ethiopia and Mexico. This approach provides jobs to women in these countries. So you can take part in helping others as you build your wardrobe.

Affordability ranking: Under $200

10. Organic Basics

With Organic Basics, the name says it all. This brand is quick to get you basics you can believe in. While undergarments are their bread and butter, they also sell other great items, e.g., activewear, loungewear, and other relaxed outfit options.

You’ll have no problem finding a wide variety of tee shirts and other basics for your wardrobe. This brand also focuses on their environmental impact and how their workers are treated.

Affordability ranking: Under $100

11. The Nisolo brand

The Nisolo brand is an ethical and sustainable company focusing on fashionable and classic shoes and accessories, e.g., boots, sandals, sneakers, and dressier shoes. Their products are well-made and practical to help you reach your fashion goals. The company also focuses on:

• Pursuing 100% living wages for their employees
• Pursuing 0% Net Carbon

The classic look that the Nisolo brand offers means that the items you purchase are sure to go with many other items in your closet.

Affordability ranking: Under $300

12. MATE the Label

MATE the Label creates sophisticated loungewear with impact in mind.

For instance, they use organic materials, ethical factories in LA, and non-toxic dyes. Additionally, you can even return your items at the end of their life cycle, and MATE will turn them into new garments.

Their collections are full of muted colors, which is great if you want to look chic in earthy tones and keep a color palette that matches well.

Affordability ranking: Under $200

13. Fair Indigo

Fair Indigo aims to be “forever in fashion” with its simple designs. They partner with Peruvian farmers for top-of-the-line Pima cotton, and they also have a foundation that supports educational opportunities for children.

They sell comfortable outfit staples and dressier items, so all your wardrobe essentials are covered.

Affordability ranking: Under $100

14. Reformation

Reformation is a climate-neutral certified clothing and accessories brand firmly committed to sustainability.

Additionally, the brand has ambitious plans to be climate-positive, earning them a place as one of the most desirable minimalist clothing brands out there.

That said, there are plenty of pieces for everyone (for instance, dresses, sweaters, shoes, bags, and wedding attire), with new styles added to the site weekly. If you need some trendier pieces that are still minimalist, this is a great shop to check out.

Affordability ranking: Under $300

15. Arket

Arket is a sustainable clothing brand dedicated to providing its customers with information on how to care for garments to extend their lifespan.

Additionally, their in-store recycling services make them an excellent choice for environmentally conscious people.

The brand is fashion-forward while still being simple enough to be minimalist. In addition to selling sustainable fashion for women, men, and children, they also sell responsibly crafted home accessories.

Affordability ranking: Under $200

16. Sezane

Sezane is known for maximizing the lifespan of garments through the quality of pieces they sell and by sticking to the model of four seasons per year, with smaller collections throughout the year.

Additionally, Sezane’s sustainability commitments are proudly displayed on its website, demonstrating its passion for a more ethical future in fashion.

So you’ll find everything you need from this forward-thinking brand, from dresses and knitwear to jewelry, belts, and accessories. The products are colorful, classy, and well-made, so you can add a few interesting items to your minimalist clothing collection.

Affordability ranking: Under $300

17. Eileen Fisher

Eileen Fisher is a great brand to consider if you’re looking for ethical and timeless fashion pieces to add to your wardrobe. Choosing a piece from this collection means you’ll always look elegant, and it’s an excellent example of sustainable fashion.

For instance, they focus on reselling clothing that is pre-owned and repurposing materials. You can purchase stunning wool, velvet, and silk pieces from this brand.

Affordability ranking: Under $300

18. & Other Stories

& Other Stories has an innovative approach to the materials that are used in their pieces, they focus on sustainable and recyclable materials. They use fabrics like cotton, silk, linen, and recycled polyester.

In addition, their minimalist fashion range is made up of versatile collections that include outerwear, stylish dresses, and accessories. So whatever your unique style is, you’ll find some pieces here to add to your wardrobe.

Affordability ranking: Under $100

19. Frank & Oak

Frank & Oak state that 100% of their products are created with sustainable processes and, additionally, with eco-friendly materials. Their clothes are designed to give you a timeless fit and look, perfect for fashion minimalists.

They stick to neutral and simple patterns, so your clothes will be in style for years to come.

Affordability ranking: Under $200

20. NA-KD

Swedish brand NA-KD is another minimalist clothing brand with a wide range of items, from tops and dresses to accessories and footwear. They’ve created a unique, sustainable womenswear collection to aid you with how to be elegant and minimalist at the same time. They aim to have a 50% reduction of climate emissions per product by 2025.

The company is also committed to boosting its products’ circularity by improving its supply chain model.

They offer truly unique but simple looks that can be at once trendy and minimalist.

Affordability ranking: Under $100

21. Jenni Kayne

Jenni Kayne is your go-to brand if you want a minimalist wardrobe suitable for all seasons. The brand offers a truly essential yet sophisticated look that is memorable and pretty. With recycled knits and eco-friendly homewares, there’s plenty for even the most environmentally conscious shoppers.

Without a doubt, you’ll love the brand’s high-quality, timeless, and versatile pieces, as well as their regular sales!

Affordability ranking: Under $500

22. Allbirds

Allbirds creates comfortable and sustainable footwear for the whole family. The brand hopes to reduce its carbon footprint to almost zero by the year 2030, and they focus on natural materials for their products.

They offer quite a variety of running shoes and other comfortable options that you’ll wear on repeat for years. As a bonus, you can easily wash Allbird shoes, meaning you can keep them in good condition for longer, and even owning one pair can give you multiple styling options.

Affordability ranking: Under $100

23. Patagonia

The Patagonia brand focuses on outdoor and active wear with a sustainable focus. For many years, the company has given 1% of its sales to help the environment.

Their commitment to helping the planet and creating great basics makes it the perfect store to shop for outdoor gear.

Affordability ranking: Under $100 to over $500

24. UpWest

UpWest is an excellent option for a comfortable, environmentally-conscious, and wallet-friendly wardrobe. Great for those who prefer a casual look. They recycle old clothing to create new products with their program, Recircled.

Their clothing features a relaxed and simple look that any minimalist will love.

Additionally, UpWest’s partnership with Give Back Box is a fantastic and easy way for you to donate your used clothing and accessories and do your bit for the environment.

Affordability ranking: Under $100

25. Kotn

Kotn’s garments are beautifully made and a great addition to your collection. It’s a great assortment of basics you won’t soon tire of. Their products feature high-quality Egyptian cotton, linen, lyocell, and more. The company is committed to making its supply chain as transparent as possible, earning them a place as one of the best minimal clothing brands.

As a result, their products are designed in a considerate way to provide their buyers with high-quality clothing that has a positive impact on the environment.

Affordability ranking: Under $300 

26. Secondhand retailers

You don’t have to buy anything new! Shopping secondhand is perfect if you want to afford luxury items but have a limited budget.

You can check out local thrift shops. However, online secondhand retailers make it even easier to search by size, brand, style, and color. You can even search “new with tags”! Check out ThredUp or a site like Poshmark.

Affordability ranking: Prices range from $100 to $500+

27. Curated retailers

Curated retailers like Made Trade or Done Good vet a variety of different brands and make them accessible in one place. With this in mind, you can feel confident about shopping with ethical, sustainable brands.

Affordability ranking: Prices range from $100 to $500+

Expert tip: Add your unique personal style to outfits

Remember that even if you choose to create a minimalist wardrobe, it doesn’t mean you can’t add your own unique personal style to your outfits.

For example, consider various types of jewelry, accessories, and great shoes. Even if your closet is full of minimalist designs, it will never feel boring if you take the time to be creative with your outfits.

What makes a great minimalist clothing brand?

A great minimal clothing brand provides its customers with a wide range of high-quality pieces that can be used to create several looks.

Additionally, the designs of the clothing are classic and timeless. You can wear your pieces for many years to come (all while having a minimalist budget).

Given that, there are some things to consider that will help you decide what makes a great minimalist clothing brand.

First, think about sustainability. Are natural and regenerated materials being used? Does the company have methods in place to subsequently reduce energy and water usage?

Consider the ethics of a company, as well. Are they transparent on who makes the clothes and where they are made? Do they ensure that their workers are treated fairly?

And last, find out about the brand’s circular practices. For example, does the brand have a recycling initiative to avoid sending clothing to landfills?

All of these things tie together to make clothing more sustainable. When clothing is more sustainable, it fits better into a minimalist wardrobe since your clothing will be high quality, and you’ll need fewer items.

It also allows for opportunities to recycle and reduce waste, and less waste due to ethical practices means we can all live more minimally and also learn how to live sustainably.

What are some of the most affordable minimalist clothing brands?

There are plenty of affordable options when it comes to minimalist clothing brands. As a result of these options, you don’t have to compromise on quality or sustainability values either!

Our favorites are:

• Vetta
• Pact
• Everlane
• COS
• Organic Basics
• Fair Indigo
• Arket
• & Other Stories
• NA-KD
• UpWest

Buying garments from high-quality, minimalist companies helps with how to save money in the long term!

Can I still be stylish with a minimalist wardrobe?

Yes, you can, as the best thing about minimalist fashion is that it always stays in style. So you’ll always be stylish, no matter how you mix and match your wardrobe.

To achieve a minimalist wardrobe, be sure to add a few classic and timeless garments to your closet. It will help you look and feel your best with minimal effort and a simple wardrobe.

Whatever your motivation for creating a minimalist wardrobe, enjoy the process and then be proud of the difference you’re making to the world (and your confidence).

How many pieces of clothing does a minimalist have?

There’s no rule regarding how many pieces of clothing a minimalist should have. The key is to keep things simple! One minimalist could own 10 items, while another could have 40.

For example, here’s a list of ideas for staple pieces that will allow you to create more looks with less:

• Vests or bodysuits for layering
• Casual T-shirts (black, white, and grey work well!)
• Workout tops
• Long-sleeved tops/shirts
• A durable blazer/jacket
• Smart black trousers
• Skinny or straight-leg jeans (black and blue)
• Sweater
• Two casual skirts or dresses
• Running shoes
• A pair of comfortable heels
• A few pairs of flats
• A set of loungewear/pjs
• Two swimsuits
• Three good quality bras
• Seven panties

How do minimalists buy clothes?

Minimalists buy clothes after careful consideration, and they tend to buy high quality rather than something that needs to be replaced often. You should focus on purchasing things that you’ll wear often and that pair well with your other clothing items.

In addition, a good way to shop minimally is to make a list and know exactly what you need. Then, go through the list and cross off anything impractical or anything that you already own using the “shop my closet” technique. See what you already have that you enjoy wearing and don’t need to buy.

You can use the list above of minimal clothing brands to help you find what you need to purchase.

Articles related to a minimalist lifestyle

If you enjoyed this article on the best minimalist clothing, then check out this related content:

• Why Is Fast Fashion Bad? 20 Fast Fashion Facts
• Living A Minimalist Lifestyle To Improve Your Finances
• How To Live Sustainably And Save More
• Minimalist Finances And How To Become A Financial Minimalist

Minimalist clothing brands are definitely worth considering!

If shopping for clothes is your biggest budget buster, then going for minimalist clothing brands might be the quickest way to maximize your spending. And it can definitely help if you wonder, “Why can’t I save money?” and need to be mindful of purchases. Remember: it’s not necessarily about a target number of garments in your closet.

Instead, it’s about considering what you need, what you’ll wear, and what makes you feel fantastic (this can also help you beat a shopping addiction!). Subsequently, the items that check those boxes are worth your hard-earned cash. Anything else is just a waste.

After you get acquainted with this new minimalist fashion approach to shopping, do your own research, too. Go down the rabbit hole and search for brands based on your needs or concerns, e.g., multi-use garments, natural fabrics, ethically made, plastic-free shipping, etc. There’s a solution out there that fits your style and budget. Happy shopping (or saving)!

The post 27 Minimalist Clothing Brands Your Budget Will Love appeared first on Clever Girl Finance.

Does it feel like the holiday season sneaks up on you every year? Instead of getting caught with a cash shortage come year-end, it’s a great idea to put money aside earlier in the year for gifts and travel. That said, you can leverage Christmas Club Accounts to automate your savings to make the holidays a lot more affordable!

With Christmas season/holiday debt continuing to grow year over year, saving money has never been more important. In fact, 4 in 10 people say they expect to go into debt over the holidays, according to a U.S. News & World Report study.

That said, by using a Christmas club, you’ll have a chance to experience less stress and enjoy the holidays more by avoiding credit cards, saving money, and using cash instead.

Do people still use Christmas clubs?

The short answer is yes, people do still use Christmas clubs. While Christmas clubs may have had more popularity in your parents’ (or grandparents’!) generation, they still exist.

According to AGFinancial, the 1950s and 60s were the most popular times to have an account like this, with less popularity in the 1970s.

But they’ve stood the test of time because the holidays return every year. And seemingly with more elaborate celebrations and wish lists and a more expensive holiday shopping season.

It makes sense to siphon off a little of your paycheck every month rather than blowing your budget out of the water once the holidays roll around.

What is a Christmas club account?

A Christmas Club, also called a holiday club account, is a type of savings account that’s been specially tagged for your holiday fund. It’s essentially there to help you with how to prepare for Christmas, similar to how vacation clubs can help you pay for travel.

Most people use their Christmas club savings on Christmas gifts, travel, and other holiday spending. Things like more expensive meals, outfits, and outings, as well.

The Christmas club savings is just one type of savings club. Another popular example is the Susu (find out “what is a Susu” here).

How does a Christmas club account work?

Many community banks and credit unions offer Christmas club savings accounts where you can start saving money for Christmas. The idea is to open an account as early in the year as possible so you have time to save for the upcoming holiday season.

You can then make consistent payments when you choose (weekly, bi-weekly, monthly, or quarterly) into the account with the intention of withdrawing the cash from the account around November 1 of each year.

Many accounts have a low minimum opening deposit to get started, as well. That said, it’s a good idea to make automatic deposits as you budget by paycheck in order to save for the holidays.

However, if you find that you need to make a withdrawal before the set time, you may get an early withdrawal penalty. Think of this penalty as a way to ensure you don’t get tempted to spend the money you have in the account before the holidays!

Why should you use a Christmas savings account?

Using a Christmas savings account can save you the stress of feeling like you don’t have enough money when the holidays approach. Your Christmas shopping is easier if you plan for it all year.

When you open your Christmas savings account, you can generally choose to have your contribution as a direct deposit from your paycheck.

Setting up this direct deposit can help you save without “feeling” the deduction or handling any transactions. Often, you can even set up an automatic transfer from the Christmas club account to your normal account on November 1st.

Now you have a general idea of this account type, let’s get into the pros and cons.

Pros of Christmas clubs

Contributing to a Christmas club is a hands-off way to build positive money habits of saving. You’ll quickly see that every little bit adds up.

Additionally, spreading out the expenses across the entire year makes the holidays much more manageable.

A Christmas savings account is perfect if you (or your partner) lack self-restraint or lose track of your money goals and prefer set-it-and-forget-it style savings.

A Christmas club account might even help you avoid credit card debt if you have a tendency to overspend around the holidays. Plus, it feels like a bonus at the end of the year. You’ll access all this cash you probably didn’t feel was missing in the first place.

In addition, Christmas savings are a great way to know in advance how much you want to spend on the holidays and force yourself to stick to a budget. You can know exactly how much you have to spend by checking your account balance.

Cons of Christmas clubs

Most Christmas clubs don’t earn great interest.

Additionally, in most cases, your money is tied up until around November 1, making it unavailable if you need emergency cash. Otherwise you might have to pay a fee to access your money early.

Plus, just because you open a Christmas savings account doesn’t mean it’ll be enough to cover all your holiday expenses. If you didn’t budget correctly throughout the year, you might still feel some holiday financial strain.

Additionally, if you have an irregular income or are on a strict budget, you may find that the money you want to deposit to your Christmas fund needs to pay for other things. In this case, a direct deposit each month may not be the best choice.

Expert tip: Stretch your Christmas budget with inexpensive ideas

Christmas clubs can help you save a good amount for the holidays. But remember that you can also stick to a budget and find inexpensive ways to celebrate.

For instance, can you bake cookies for your co-workers and friends instead of buying expensive gifts? Or perhaps you can send homemade cards rather than spending a fortune on holiday cards.

If you cut back on certain things, then there will be more money left for the more expensive items on your list, such as travel or a costly Christmas present.

Where can you open a Christmas club account?

You can open a Christmas club account in a couple of different places. Check out these options:

Credit unions

When it comes to Christmas clubs, credit unions are your best bet. 

What are some of the differences between credit union and banks? Well credit unions are non-profits and generally community-focused, have accessible customer service, and low fees. Banks, on the other hand, are for-profit.

If you bank at a credit union, ask them what they offer as far as Christmas savings.

Community banks

You can also check with your community bank and see if they offer Christmas savings accounts. Community banks usually focused on serving customers in the community where they live and work. This allows the community to grow.

As a result, it is not uncommon for community banks to offer Christmas savings accounts. If not, they will certainly have regular savings account options that you can use instead. Remember, there are many ways to save up for the holidays.

Other types of Christmas Savings Accounts

Having an account that is labeled as a Christmas fund isn’t the only way to save. Here are some other smart solutions:

Cash envelopes

Christmas savings accounts are like an automated digital envelope system. The principle of allocating funds to specific causes extends beyond the holidays.

If you prefer to work with cash or find it easier, then try out the cash envelope system. Keep an envelope labeled “holiday expenses” and add money to it each month. Or do a digital version of this by setting money aside each month.

Certificate of Deposit

You can also do a “DIY” Christmas savings account by putting your money into a Certificate of Deposit (CD).

A Certificate of Deposit locks your money away for a set amount of time, after which you can receive a higher amount of interest than a standard savings account.

High-yield savings account

Even a non-specific high-yield savings account could be a useful option for your holiday savings if you know you’ll be able to let the money grow and resist the urge to take it out before the holidays. (Because, in this case, the account itself won’t block you from withdrawing early like a Christmas club or Certificate of Deposit does.)

Traditional savings account

Another option is to simply use a regular savings account. If you aren’t overly concerned about earning interest (and since it’s a short term savings goal, interest isn’t the main factor), you can try this out instead.

Just open a regular savings account at your bank and then mark it for holiday expenses. Even utilize direct deposits if you want. It will help you do Christmas on a budget.

Are Christmas Clubs worth it?

Christmas clubs can be worth it if you want an easy way to save for the holidays. They enable you to save up money almost without thinking about it, which can be great.

Then, by the time you’re ready to consider a holiday budget, the funds are already there.

However, there are also many other ways to save for the holidays, and this idea doesn’t work well for everyone, particularly if your bank or credit union doesn’t offer a holiday club option.

What can I use instead of a Christmas club?

You can use many other accounts instead of a Christmas club, including a savings account, a CD, or even try saving money in a jar that you add cash to throughout the year.

There are a variety of ways to save up money. The most important thing is to be consistent with your savings rate and budgeting so you have what you need when December rolls around.

Do Christmas club accounts still exist?

Yes, these accounts do still exist. They are not as popular as they were decades ago, but you can still use them to fund your holiday goals.

Opening an account like this is a great way to save and can also make your other short term savings goals easier. When you automatically deposit money, you won’t miss it, and you can focus instead on other expenses.

Do banks have Christmas club accounts?

Yes, many banks have a Christmas club option, specifically community banks and credit unions. That said, it never hurts to ask your traditional bank about this.

Find out if your financial institution offers this holiday savings option that can help you save money, or if not, consider their other savings account options.

Articles related to saving for Christmas

If you enjoyed reading about Christmas clubs and would like to hear more, check out these other posts!

• Christmas On A Budget: How To Save Money For Christmas!
• Are You Ready For Christmas? How To Avoid The Last Minute Rush!
• What Are Savings Clubs And How Do They Work?
• How To Build A Holiday Fund!

Leverage Christmas club accounts to save stress-free!

There are plenty of sources of stress in life—celebrating the holidays with your loved ones or taking part in impulse spending at Christmas shouldn’t be one of them. Regardless of how you choose to save, don’t let the holidays derail your budget.

Close out the year thankful for what you have and what you’ve earned. In fact, why not try a 30 days of gratitude challenge in December? Then head into the new year feeling grateful and with your budget on point!

The post How Does A Christmas Club Account Work? appeared first on Clever Girl Finance.

With all the resources online, it can be easy to overlook financial literacy books. However, books allow you time to reflect as you read.

Because they’re long-form, books are a great way to dive into topics you care about. That said, you can use some of the best finance books to achieve financial wellness. Check out this list!

We have put together a great list of personal finance books to help you get the knowledge you need. Additionally, these books will help women take control of their financial situations.

Financial literacy basics

Before we talk about the best books to help you, let’s discuss what is financial literacy.

Financial literacy is essentially is knowing how to make smart money choices and decisions. The more you know about money, the more you’ll feel confident and stable in your financial situation.

The three basics to practice for financial literacy are earning, saving, and growing. Earning involves simple money management, such as budgeting and debt management. Once those foundations are established, you can focus on other aspects, such as saving an building an emergency fund. Once you’ve built good savings, you can focus on growing your money through investments. 

While these concepts may be simple, much effort is required to navigate the different areas of financial literacy successfully. Fortunately, our list of books can help you learn and master new skills regarding your money.

Why reading financial literacy books is helpful

A basic understanding of financial literacy will set you on the right track for financial stability. However, if your long-term goals are to be more secure with your money and gain financial freedom, then books are necessary.

Financial literacy books go into the details, give examples, and better explain financial literacy concepts. In addition to providing helpful information, many books offer real-life insights and guidance from finance professionals. Books can help you humanize, simplify, and apply the different concepts of financial literacy.

23 Top financial literacy books

That said, here are 23 of the best financial literacy books you should check out. Note: These financial literacy books are linked via affiliate links that help us grow Clever Girl Finance! Please see our disclosures for more information.

1. Clever Girl Finance: Ditch Debt, Save Money, and Build Real Wealth by Bola Sokunbi

Clever Girl Finance’s Founder, Bola Sokunbi, has spent her career helping women achieve financial independence. In Clever Girl Finance, Sokunbi focuses on the three personal finance pillars money-savvy women must master.

Bola is a self-made money expert and finance influencer who shares real-world examples from her own life.

In addition, she also shares proven financial wellness processes. They include how women can leave debt behind, start saving, and invest in ways that build wealth for the rest of their lives. These ideas make it one of the best financial literacy books you can read.

The book aims to teach and empower women. It helps them identify their needs, challenges, and relationships with money. There are also stories from other women’s journeys that make financial security feel accessible.

2. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner

Written by financial journalist Beth Kobliner, the Get A Financial Life financial literacy book is for millennials wanting to explore their financial prowess.

Today’s young adults are faced with managing their money through societal challenges. We’re in the age of student loan debt and a nationwide housing crisis.

So Get A Financial Life gives concrete, actionable tips. The book promotes healthy financial habits that will benefit readers now and in the future.

3. Real Money Answers for Every Woman: How to Win the Money Game With or Without a Man by Patrice C. Washington

Patrice C. Washington draws from her own experience with student debt and overspending. She shares how women can dig themselves out of bad money habits in Real Money Answers.

Using a Q & A format, Washington covers how to truly own your finances. Additionally, she covers building credit, buying a home, and negotiating higher pay.

Whether readers are new to money management or need a financial reset, Washington’s advice shows how freedom comes with financial security

4. Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry

Broke Millennial shows that being young doesn’t mean you have to be broke. It’s among the best financial literacy books for women who want to become better with money.

Erin Lowry writes in a relatable style that encourages action in readers. In fact, her philosophy is “Get Your Financial Life Together” (#GYFLT).

So beyond the budgeting and debt repayment basics, Erin dives into the mindset and a practical approach. For instance, if you’re planning a life with a partner and controlling your money habits in social situations.

5. On My Own Two Feet: A Modern Girl’s Guide to Personal Finance by Manisha Thakor and Sharon Kedar

Co-authored by Harvard Business School graduates and investment experts Manisha Thakor and Sharon Kedar, On My Own Two Feet provides a roadmap for money management.

Thakor and Kedar guide their readers through all the personal finance basics, from spending and saving habits to big-purchase goals and safeguards. With the aim of relieving money stress, this book is packed with useful advice.

6. You Are a Badass at Making Money: Master the Mindset of Wealth by Jen Sincero

Motivational writer Jen Sincero dedicated this book to the internal work needed to earn and grow the money you deserve. Therefore, it’s useful for entrepreneurs, freelancers, and women wanting to negotiate their salaries.

You Are A Badass focuses on the psychology of money. It identifies and addresses the barriers to earning that you’ve created in your own head.

In addition to humor and moxie, each chapter uses personal anecdotes of transformation. And there are self-reflection exercises for you to reach your earning potential.

The book is for anyone with a financial scarcity money mindset who wants to feel abundant with their money.

7. The 21-Day Financial Fast: Your Path to Financial Peace and Freedom by Michelle Singletary

This financial literacy book by Michelle Singletary is perfect to read if you need a clearly defined game plan for finance.

The 21-Day Financial Fast takes you through a three-week spending hiatus (except for essentials). In addition, it gives you time to address bad spending habits. Also, the book helps you create a plan for paying down debt and prepare for future expenses.

Michelle recognizes that money can be a source of stress and limitations. Consequently, this 21-day “fast” promotes financial peace and freedom.

8. Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence by Vicki Robin and Joe Dominguez

Vicki Robin and her co-author, Joe Dominguez, have sold over one million copies of this book.

Your Money Or Your Life teaches you to have agency over how you feel about and deal with money. You’ll work through a nine-step program. Robin explains everything from mindfulness and decluttering to side hustles and money conversations.

The book focuses on intentionality in your spending and investing. In addition, it explains how to make your money work for you and the world around you. So, much of the book’s content ties into Robin’s background in the sustainable living movement.

9. The Feminist Financial Handbook: A Modern Woman’s Guide to a Wealthy Life by Brynne Conroy

The Feminist Financial Handbook uses a feminist lens to approach personal finance.

We live in a society controlled by whoever can pay. Brynne Conroy argues that women can create a more fair world by building their own wealth.

It draws from stories of women of varying races, sexual orientations, abilities, and financial situations. Conroy provides motivation and resources to achieve personal success.

10. Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required by Kristy Shen and Bryce Leung

Quit Like A Millionaire was written by married couple Kristy Shen and Bryce Leung. It’s absolutely on the list of the best financial literacy books for wealth building. Both authors are champions of the FIRE (Financial Independence, Retire Early) movement.

Basically, this unique approach advocates for retiring at any age. You do this by spending less and investing. Shen uses a numbers-driven system that readers can adapt to live life on their own terms and grow rich.

In addition, you can do this away from day jobs and standard retirement savings. Find financial freedom with the money lessons in this book.

11. We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth, and Gaining Economic Power by Rachel Rodgers

We Should All Be Millionaires offers a powerful perspective on becoming rich. Rachel Rodgers shares ideas for earning more money. In addition, you’ll find advice for shifting your mindset about wealth.

Overall, it’s a refreshing look at why and how to be successful as a woman today.

12. Clever Girl Finance: Learn How Investing Works, Grow Your Money by Bola Sokunbi

Bola Sokunbi’s second book goes beyond everyday money management. Instead of focusing on budgeting and saving, it demystifies the investment world.

Likewise, it’s just as approachable as her first book. Learn How Investing Works guides novice investors to take action toward long-term financial gain.

Sokunbi also gives examples of the difference between making money and building wealth. In addition, she includes pitfalls to avoid and knowledge to use to become a successful investor.

Even on a modest salary, readers should feel confident enough to grow a nest egg for the future after reading this book.

13. The Black Girl’s Guide to Financial Freedom: Build Wealth, Retire Early, and Live the Life of Your Dreams by Paris Woods

If you are tired of feeling broke, The Black Girl’s Guide to Financial Freedom will help you craft a plan to build wealth. Based on the author, Paris Woods’s personal experience, it outlines a simple path to creating financial freedom for yourself.

After years of working in education, Woods figured out her wealth-building blueprint without changing careers. As a result, she wrote a book to show you how to do the same.

Although the focus is on Black women, this book will resonate with women of all ages, especially young professionals just starting their careers.

14. Women with Money: The Judgement-Free Guide to Creating the Joyful, Less Stressed, Purposeful (and, Yes, Rich) Life You Deserve by Jean Chatzky

In Women With Money, readers are encouraged to use money to build a more relaxed life that aligns with their values. It includes an organized system that helps you think through how you view money. In addition, you’ll learn to use your money to make strides toward the things you want most in life.

It features incredible research and sound advice. Jean Chatzky reminds us what money is really about.

15. Get Good with Money: Ten Simple Steps to Becoming Financially Whole by Tiffany Aliche

If you want to live your best money life but need a system to help you, this book is for you. Tiffany Aliche explains in a 10-step plan how to assess, organize, and control your money. In addition, she shares her own money mistakes and recipes for success.

Get Good With Money advises those new to finance. You’ll learn all the basics and the best way to structure your money.

16. Rich Dad Poor Dad: Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki 

Author Robert T. Kiyosaki uses his book, Rich Dad, Poor Dad, to tell his life story about how he learned to manage money well and build wealth. Based on Kiyosaki’s experiences growing up with his real dad and his friend’s wealthy father, the book highlights different perspectives on acquiring wealth.

The book focuses on risk management, investing in assets, and the importance of learning. Since it was published 20 years ago, Rich Dad, Poor Dad has become the #1 book in personal finance.

17. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley, Ph.D., and William D. Danko Ph.D

The Millionaire Next Door will help you re-evaluate your spending habits and look at wealth obtaining and retention in a new way. The books show how greed or the need to demonstrate wealth can lead to financial disparity.

Written by Thomas J. Stanley and William Danko, who help you to see the benefit of saving for the long run. While many people may think there are secrets to getting rich, The Millionaire Next Door shows you that being rich is more about managing your money well than having a lot of money.

18. Think and Grow Rich: The Landmark Bestseller Now Revised and Updated for the 21st Century By Napoleon Hill

Think and Grow Rich was published in 1937, and in its updated version, it shares the classic insights from the original version with newer information. Author Napoleon Hill spent 20 years interviewing wealthy and successful people and sharing their wisdom.

Still, one of the best finance books because it focuses on mindset, staying focused on your goals, and surrounding yourself with people who help you grow. The book isn’t as direct as other financial books but includes timeless lessons you can use throughout your life. 

19. I Will Teach You How to Be Rich by Ramit Sethi

Author Ramit Sethi teaches readers how to save money and have the freedom to spend money on desired things. This New York Times Bestseller will give you a realistic approach to saving money. 

Reading I Will Teach You How to Be Rich, will help you take responsibility for your current financial situation and confidently move forward. In addition, it’ll help you start investing with very little money. 

20. The Intelligent Investor Rev Ed.: The Definitive Book on Value Investing by Benjamin Graham and Jason Zweig 

Benjamin Graham is a wealthy and famous investor whose book will teach you how to invest and think like an investor. The Intelligent Investor focuses on essential aspects of investing, such as diversifying and knowing which stocks to invest in and which to avoid.

With the revised edition, you still get Graham’s advice but with commentary from journalist Jason Zweig on today’s market. The book benefits anyone looking to make investing a part of long-term financial plans. 

21. Money Out Loud: All the Financial Stuff No One Taught Us by Berna Anat

Author Berna Anat called herself the financial hype woman. In her relatable and practical book, Money Out Loud, she simplifies personal money management, making it less scary for the average person.

Anat breaks down how to successfully and efficiently create a budget. But what makes Anat’s book a page-turner is that she takes serious money topics and makes them fun. Her book also tackles significant issues, such as how the wealth system is designed to keep many people from reaching financial success.

It’s a book that will have you feeling inspired to use money in a way that can help make the world a better place.

22.  The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime by MJ DeMarco

In MJ DeMarco’s book, The Millionaire Fastlane, he challenges conventional ways of obtaining wealth. He criticizes the traditional methods of relying on the stock market, relying on your savings or 401K to be rich. Ironically, he calls most conventional forms of wealth building the slow lane. This book emphasizes that if you continue on those paths, it’ll take years to acquire the wealth you desire.

Instead, DeMarco”s book introduces valuable insights into the different and faster ways of obtaining wealth. He helps readers reach their financial goals faster without sacrificing their free time or giving up buying Starbucks every day.

23. Money: Master the Game 7 Simple Steps to Financial Freedom by Tony Robbins

In his book, Money Master The Game, Tony Robbins takes financial advice straight from millionaires and shares it with average people. Over ten years of research was put into this book, along with the wisdom and guidance from wealthy professionals such as Warren Buffet, Ray Dalio, and Jacke Bogle.

The book includes the original transcripts to get the full knowledge and experience. In addition, Money helps you to create practical goals around your finances.

Expert tip: Read books related to your financial situation

While there are many bestselling financial books to choose from, it’s crucial you select the book that is right for you.

Consider your financial situation and the goals you want to achieve. Ask yourself which book will help you reach the success you desire. Just because a book is popular doesn’t mean it’s the right book for you.

What books do I need to read for financial literacy?

The best financial literacy books are often bestsellers, such as ” I’ll Teach You How to Be Rich,” ” Rich Dad, Poor Dad,” and our very own “Clever Girl Finance” book series.

In addition, the best financial literacy books should focus on different aspects of budgeting, saving money, money management, and investing. It’s best to choose books with practical advice and relatable content.

Where do I start with financial literacy?

The first step is understanding what financial literacy actually is. Reading the definition of the term is a great start, but to really understand, it’s best to read articles or watch videos on the topic. Once you understand what financial literacy is, you can start expanding your knowledge and applying what you learn by reading financial literacy books.

By reading financial literacy books, you gain a better understanding of the concept and are able to incorporate different elements of financial literacy into your life.

What are the 5 pillars of financial literacy?

The five pillars of financial literacy include earn, spend, save, borrow, and protect. Earn involves understanding how you make and understanding your gross vs. net income. Spending focuses on how you spend your money and is tied to budgeting. Saving focuses on saving money, such as having an emergency fund, a retirement, or a sinking fund.

Borrowing money is expected. Often, you borrow money for student loans or with credit cards. However, with financial literacy, you are paying attention to how much you are borrowing and making sure you are making regular payments on what you owe. Financial literacy helps you to borrow money in a responsible and manageable way.

Lastly, there is protection, which means you protect the money you’ve earned. Protection can look like monitoring your accounts regularly or having some insurance for your investments.

What is the best book to read on finance?

Determining which is the best book to read on finance can be tricky. While bestsellers such as our very own “Clever Girl Finance: Ditch Debt, Save Money And Build Real Wealth” are a great option, or classics such as “Think and Grow Rich” are also helpful, the best book to read on finance depends on different factors.

Overall, the best book gives practical advice that can be applied to your situations and has insights from professionals. Usually, books that successful people highly recommend are some of the best books to read on finance.

Related articles on financial literacy

• 10 Lessons To Learn From Everyday Millionaires
• How To Get Rich From Nothing!
• Rich Mindset Vs Poor Mindset: How to Develop a Rich Mindset!
• How To Become A Millionaire (It’s Simpler Than You Think!)
• 7 Financial Literacy Basics We All Need To Know

Start reading these top financial literacy books today!

Money management is different for every person because everyone’s lifestyles are different. Whether you are in your 20s with some debt or married and have an investment portfolio, it’s up to you to make an effort to succeed.

Fortunately, reading some of the best finance books and careful planning will help you reach financial freedom and independence.

Knowledge is the first step to taking charge of your journey. As you work on achieving financial wellness, consider joining the Clever Girl Finance book club and free financial courses.

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