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Financial Literacy

What is Financial Literacy?

“Possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual’s personal, family and global community goals.” - National Financial Educators Council

 

"The ability to make informed judgments and to take effective actions regarding the current and future use and management of money. It includes the ability to understand financial choices, plan for the future, spend wisely, and manage the challenges associated with life events such as a job loss, saving for retirement, or paying for a child’s education.” - U.S.Government Accountability Office (GAO)

 

Personal finance describes the principles and methods that individuals use to acquire and manage income and assets. Financial literacy is the ability to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security. Financial literacy is not an absolute state; it is a continuum of abilities that is subject to variables such as age, family, culture, and residence. Financial literacy refers to an evolving state of competency that enables each individual to respond effectively to ever-changing personal and economic circumstances.” -  Jump$start Coalition on Personal Financial Literacy

Topics in Financial Literacy

Relevant topics include:

  • Budgeting and money management
  • Establishing and maintaining credit
  • Reviewing credit reports and scores
  • Saving money
  • Financial goal setting 
  • Major purchases (car, house)
  • Filing taxes
  • Student loans