Free Financial Literacy Resources
April is National Financial Literacy Month, a month dedicated to raising awareness about the importance of money management skills. Consolidated Creditâs free financial literacy resources will expand your knowledge and provide the tools necessary to make wise financial decisions.
What is financial literacy?
Financial literacy is an understanding of essential money management concepts such as saving, budgeting, and investing and being able to apply this knowledge in daily life. Itâs the foundation for making wise financial choices and plays an important role in overall financial well-being. In a real-world scenario, financial literacy looks likeâŠ
- Deciding whether a windfall of extra cash should go towards paying off debt or into a savings account
- Understanding why it might be better to buy a new vehicle with cash instead of credit
- Contributing to a 401K even on a tiny salary because waiting a few years to start saving for retirement can mean a difference of tens of thousands of dollars
How to Become Financially Literate
Financial literacy isnât something you learn in school, but itâs essential for your success with money. This video teaches you how to find free financial literacy education so you can become financially literate and achieve your goals. Learn why financial literacy is important and how to use free one-on-one coaching to build financial literacy.
Maria A. Gaitan, Director of Housing Counseling & Community Outreach: Class is in session!
Financial literacy isnât something we learn in school, but it is crucial to your success. Stay tuned to learn how to become financially savvy using free financial education and one-on-one coaching.
[On-screen text] Consolidated Credit: Ask the Expert
Financial literacy is the ability to understand money and how it works, including its management, investment, and how we spend it. The benefits of a financial education are far-reaching and it forms the foundation of an abundant life.
Properly managing your finances gives you peace of mind, improves self-esteem, and garners the respect of friends and family. Financial education enables you to make informed choices. One-on-one financial coaching allows you to get help to analyze your current situation, so you can then create an action plan to help you reach your financial goals.
Goals can be purchasing a home, paying for your childrenâs college education, or how about taking that dream vacation or building a nest egg for retirement. Financial education puts you in the driverâs seat and a financial coach will help you create a plan to achieve your financial goals.
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3 ways to improve your personal finance knowledge
Like any other subject taught in school, personal finance is something you have to learn, but itâs a topic many people arenât ever formally taught. Fortunately, anyone is capable of being better with money with a little practice.
Identify what areas of personal finance need improvement
Financial literacy can be divided into five key categories. You might be more familiar with some categories than others or are completely unfamiliar with them entirely. Take our quick 20-question financial literacy test to gauge your financial knowledge.
- Budgeting. Daily money management is the foundation for financial wellness. Covers concepts like income sources, different types of expenses (e.g. fixed vs. variable), and the various budgeting methods.
- Saving. Setting money aside and allocating funds for the future is essential for financial security. Concepts include savings accounts, interest, and yields.
- Debt management. Debt can be a helpful financial tool if used correctly. Doing so requires an understanding of the different types of credit products and debt relief methods, why carrying balances can cause further debt, and the difference between good and bad debt.
- Credit management. Managing and maintaining your credit profile (your credit score and credit report). Also covers understanding how credit bureaus work and what to do if you need to dispute an error or violation.
Investing. Plays an important role in retirement planning. Accounts like 401Ks or IRAs allow a person to grow their money much faster than traditional savings accounts but require an understanding of the different types of investments and how to manage risk.
Follow this 30-day financial checklist
Brush up on some basic personal finance concepts and review your finances with this free financial literacy checklist. Each day has a different goal that will help you gain a more intimate understanding of your finances and help you improve them in just 30 days.
Get a 30-day road map for building your knowledge base »
One-on-one financial coaching
You can talk to a Consolidated Credit counselor for a free debt evaluation and free advice. Give us a call today!
Get your finances in order, talk to a certified credit counselor for free.
How Much MONEY is Financial Illiteracy Costing YOU?
Financial Illiteracy is estimated to be costing American adults $352 BILLION nationwide. With younger generations knowing less and less about basic financial concepts, the burden is on you to educate yourself and your family. If you feel that you are struggling with financial literacy, head over to ConsolidatedCredit.org or a host of free resources we put together for Financial Literacy Month!
The National Financial Educators Council conducted a survey to see how much financial illiteracy cost people. Of the 3,389 respondents, the average estimated cost was $1,389 dollars. If we use this to represent the 254 million U.S. adults, the estimated loss is $352 billion dollars. That number may sound high, but not when you consider that just four in seven American adults can be considered financially literate, and that lack of financial knowledge may become a generational problem. Only 24 percent of millennials aged 26 to 41 understand basic financial concepts and 8 in 10 American teenagers don’t have a savings account. While there has been significant growth in employer-based financial literacy programs since the start of the pandemic, it’s ultimately up to you to educate yourself and your family, because education is key to financial stability.
