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Free Financial Literacy Resources

Contributors:
Director of Education and Corporate Communications
Financial Literacy Specialist

April is National Financial Literacy Month, a month dedicated to raising awareness about the importance of money management skills. Consolidated Credit’s 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. It’s 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 like…

  • 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

3 ways to improve your personal finance knowledge

Like any other subject taught in school, personal finance is something you have to learn, but it’s a topic many people aren’t 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.  

  1. 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.
  2. Saving. Setting money aside and allocating funds for the future is essential for financial security. Concepts include savings accounts, interest, and yields.
  3. 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.
  4. 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!

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