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Financial Literacy: Getting Started: Home

This LibGuide provides a framework for learning about the fundamentals of personal financial responsibility.

Find Your Way Back!

 

ermurrowhs.libguides.com/financialliteracy

Why It Matters

 

As a young adult, one of the keys to your success will be learning to manage your personal finances.  To be financially capable, you will need to understand topics related to finance, such as making money, spending money and saving money.  Your "financial fitness" begins with identifying the values and goals that are most important to you and then figuring out how to use your resources to achieve it.  (Campbell, Foundations of Financial Literacy)

What is Financial Literacy

 

Financial Literacy:   having a body of financial knowledge plus a set of basic skills, and the ability to apply that knowledge and those skills to making informed, responsible financial choices.  Key aspects of financial literacy are budgeting, saving and managing debt. 

How To Become Financially Literate

Setting financial goals is an important step in creating financial independence.  The 50-20-30 rule is a good formula for helping you manage NEEDS, WANTS and SAVINGS.  50% of your after-tax income should go to your needs and obligations; 20% should go to your savings; and 30% can be spent on your wants.  But first, set your financial goals, then:

  • create a plan for independence
  • handle your income responsibly
  • spend less than you make
  • borrow no more than you can repay
  • live within or under your means

Keywords Related to Financial Literacy Foundations

 

  • budget
  • saving vs. savings
  • credit
  • debit vs. debt
  • loans
  • interest
  • compound interest
  • payment methods (cards: i.e debit/credit/ prepaid; digital wallets:  i.e. ApplePay/PayPal; online banking; buy now/pay later; cash; paper checks; e-checks; money orders
  • peer-to-peer payments (exs Venmo, Cash App)

Improving Your Financial Health

 

Also includes a short video.