Financial Literacy
Which groups face financial literacy barriers?
College students, people of color, women
What is budgeting?
A strategic plan for managing your money.
What is credit?
The ability to borrow money or access goods and services with the understanding that you'll pay for them later
What does it mean to invest?
Allocating money with the expectation of generating a return or profit over time
Which resource offers free courses and tools on budgeting, saving, investing, and managing debt Smart About Money or MyMoney.gov?
Smart About Money
Why is financial literacy important?
It's crucial for managing student loans, building credit, and planning for your future
What does budgeting outline?
income, expenses, financial goals
What are three tips for building and maintaining a good credit score?
Pay Bills on Time, Keep Credit Card Balances Low, Diversifying Credit Types
What are the three basic investment options?
stocks, bonds, mutual funds
What does Khan Academy offer users?
Free courses on personal finance, investing, and economics, interactive lessons and quizzes
What can college students gain from financial literacy?
it helps college students navigate expenses like tuition, housing, and everyday costs.
What are the three elements of the 50/30/20 rule?
50% for Needs, 30% for Wants, 20% for Savings
What two resources provide your credit score?
Credit Karma & Experian
What is compounding?
The process where an investment's earnings generate additional earnings over time
Name two topics that investopedia covers?
Articles, tutorials, and educational content for beginners to advanced users
Planning for this stage of life involves preparing financially for retirement years
Retirement Planning
What is Saving?
The difference between your income and your expenses; the act of setting aside money now in preparation for the future. One important savings rule to keep in mind is “pay yourself first.”
What is a credit score, and what factors influence it?
A credit score is a numerical representation of a borrower’s creditworthiness, influenced by payment history, amounts owed, length of credit history, types of credit, and new credit inquiries.
What are some benefits from investing?
Builds wealth over time, teaches risk management, ability to achieve long term goals
What is an emergency fund, and how much should you ideally have saved?
An emergency fund is money set aside for unexpected expenses; ideally, it should cover three to six months' worth of living expenses.
What does it mean to live within your means?
Living within your means means spending less than or equal to your income, avoiding debt, and maintaining financial stability.
What are common tools that can help me budget?
Excel Sheets, Google Sheets, Paper & Pen
Why is Credit important?
Good credit opens doors, impacting lending decisions, loan terms, rental opportunities, and job prospects
What does real estate cover?
All infrastructure buildings & land
In this Financial Series, what does the J.E.W.E.L.S. stand for?
J - Justify Your Expenses
E - Earning Opportunities
W - Wise Investments
E - Efficient Saving
L - Learning Financial Literacy
S - Setting Financial Goals