Financial Literacy : A Means To An End


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Financial Literacy is the set of skills and knowledge that allows someone to have the ability to read, analyze, manage and communicate about their personal financial conditions that affects their well-being. Financial Literacy includes the ability to discuss money and financial issues, plan for the future and respond the events in our everyday life. There are four standards that are in the financial literacy. The first standard is the decision making and goals. The second standard is the income and careers. The third standard is savings, investing and retirement planning. The fourth and final standard is principles of money management. The top focus is to manage personal financial matters efficiently and make appropriate decisions. 

There are six ways to improve your financial literacy. First use resources from our government. Second is to read the newspapers and magazines. Third to do research on the internet or online. Fourth take financial literacy courses. Fifth listen to the radio and the sixth way is to purchase financial tools. The five key components of financial literacy are as follows: one -basic budgeting, two -impact interest, three -save money, four -credit debt roller coaster, and five -identity theft issues. 

The main goal of financial literacy class is to provide student or individual with the information and tools to be financially literate and successful. Knowing a Financial Literacy Class Model is the key to a better future. Financial literacy is the credit and debt management that is necessary to make financial responsible decisions. Teaching financial literacy to the kids of our community will help reduce the economic impact of recession. This will have a great impact on their future. 

Some topics of financial literacy are as follows: Basic Banking and Budgeting, Credit and Debt, Income planning risk management and taxes, Money flow and asset creation, and Individual development account. Some lessons that are taught in financial literacy are Planning and goals, Career preparation, Spending and credit, Consumer protection, Income, Money management, Savings and investing, and Risk management. 

Financial illiteracy affects people of all ages and social economic levels. This causes many people to fall as victims of high interest rates for loans, bad credit and also bankruptcy. Without any financial knowledge this can lead to large amount of debts and poor financial decisions. Teaching kids the basic financial lessons may help them avoid personal debt and improve their financial security. 

In my opinion, financial literacy should be taught in every high school as taking the class in college maybe a little late, so the students will know what to expect in life when they graduate. Without any knowledge of the real world how can anyone achieve their goal. If what we now, we knew back then, how would our life be? Without this knowledge how can anyone right out of high school know the next step. The students in school do not know how to budget a checking account. What is a credit report. How to obtain credit. What is the difference between savings and investing.


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