Financial Literacy is the knowledge gained to implement the most effective and successful money management practices. Financial Literacy is vital for an individuals’ professional and personal growth.
Our key goal is to provide students with the information and tools to be financially literate and successful. We will provide information and tools on the following financial literacy topics:
Spending Plans 101 (1/2) Spending Plans 101 (Building Your Financial Foundation 1/2) – YouTube
What are budgets and why should I have one?
A budget is a record of an individual’s income and expenses that will guide the individual to be financially successful. A budget can be as simple as writing down basic monthly income and expense amounts on a piece of paper or creating a detailed worksheet with information for each day of the week. A budget can help individuals reach a variety of financial goals such as saving for a car or encourage an individual to spend less money on clothes or eating out.
Funding your Future (2/2) Funding Your Future (Building Your Financial Foundation 2/2) – YouTube
Guideline for Creating a Budget
Credit Cards 101 (Credit Card Basics 1/3) – YouTube
What is Credit?
Credit is your reputation as a borrower. It tells others how likely you are to repay your loans. Credit is made up from information about your borrowing history. Most of the information comes from your credit reports.
What is a Credit Report? Credit Scores and Reports 101 (Credit Card and Loan Basics 2/3) – YouTube
A credit report contains information about your borrowing history. Lenders provide information that ends up on credit reports. How much you borrow, your repayment history and other details about your borrowing behaviour are on your credit report. When someone wants a credit report, it is requested from a credit reporting company. These agencies collect and distribute all of your information.
What is a Credit Score? Credit Scores and Reports 101 (Credit Card and Loan Basics 2/3) – YouTube
Credit agencies use your credit history to determine a credit score. These scores are determined by a computer program that runs through your credit report. It looks for patterns (such as on time payments), characteristics and any red flags that may need to be tended to. Credit scores are used for multiple areas in your life such as lending decisions for cars or mortgages, insurance and even employment approvals.
The Need to Build Credit
If you do not have a credit history, lenders do not know if they should lend you money. It is not able to be determined if you are a responsible debt-payer or a bad risk. You need to build credit in order to prove your creditworthiness. Young adults who are just starting to learn about financial responsibilities need to build credit. However, remember that credit can be a useful tool but it can also get you into trouble. After you begin building credit you may be inundated with tempting new credit offers. Banks, credit card companies and others will want to loan to you as you are a good borrower. Don’t take every offer — only borrow money when it is truly beneficial to you.
How to Monitor Credit
After you build credit, you must monitor it. The US Government requires that the credit bureaus provide an annual free credit report to you and you should take advantage of this right by visiting the site below under additional resources.
Basic Guidelines for Credit Card Use
If having a credit card turns into a problem, stop using it for a while until it is back under control.
Personal Loans 101 (Debt Management 4/4) – YouTube
What is Personal Finance?
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend monetary resources over time, taking into account various financial risks and future life events. Components of personal finance might include checking and savings accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies, and income tax management.
The key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and reevaluation. In general, it has five steps:
What is Debt Management?
To put it simply, debt management is the act of managing debts. However, it can also refer to a credit counseling service that consolidates your unsecured debt into one monthly payment, which is sent directly to your creditors by the credit counseling service.
Debt management is one of many options that consumers have for reducing their credit card debts. Consumers can try to manage their debts on their own. Financial experts recommend that consumers should be tracking how much money they pay out every month, not only in terms of what they pay to reduce their various debts, but also for everyday and cost-of-living expenses. By doing so, they may be able to identify ways to cut costs for luxuries and other purchases even before making more radical decisions.
Basic Rules to Budgeting and Money Management