Five Everyday Reasons You Need To Know Math (NAPSA)—Many people may shy away from the subject of math, butit is important to understand mathasit 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 percentstated 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 andtherole it plays in financial decision making. “Having a foundational knowledge of math helps people make informed purchases for major investments and expensesas 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 programsasit relates to everydayfinancial decisions.” Dr. Hadley providesfinancialtips for areas where mathskills are important: 1. Building a budget—A monthly budget helps allot money for fixed expenses like mortgage paymentsas well as howto plan for expenses that may vary from month to month, such as groceries. Also knowing how muchto dedicate each month for long-term savings is helpful. Having this information can set the stage for making wise spending choices. 2.Renting vs. buying a home— There is no one-size-fits-all answer on whether to purchase a home orrent. Research the real estate market in the area where you wantto live. Determine the mortgage or rent payment and the impact both options have on yourlifestyle and short- and long-term financial goals. Review your budget to understand the financial implications of each choice. The better you understand numbers, the better able you'll be to plan for your financial future. 3. Buying a car—People often assume that a vehicle is an investment. However, vehicles quickly depreciate. Be mindful of how much youare able to spend, financing options and, if you decide to take a loan to make the purchase, what you will pay in interest over thelife of the loan. 4. Saving for college tuition—Start planning early if you intend to send yourchild to college and will assumeresponsibility for the cost or if youre planning on going back to school yourself. Knowing the tuition breakdown per semester, costs for materials and living expenseswill help you factor them into your monthly budgetandsavings goals. Searching for scholarship and grant opportunities and researching student loan options will help with making sure you dont overleverage and can repay those loansin 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 everydaylife, it's never too late to learn new things or refresh what youve already learned. Consider taking a course that reviews mathematical concepts, economics, accounting and finance applications for everydaylife. 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.
