Welcome to our Financial Literacy page!
Financial literacy is a critical life skill that empowers youth to make informed and effective decisions about their financial resources. As you prepare for college and enter the workforce, understanding how to budget, save, invest, and manage debt will set a strong foundation for your financial future. Our resources are designed to provide you with the knowledge and tools you need to navigate the financial challenges ahead, helping you to achieve your personal and professional goals. Explore our interactive tools, educational materials, and practical resources to start building your financial confidence today.
Understanding Financial Literacy
Definition: What is financial literacy?
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. It involves having the knowledge necessary to make informed and effective decisions about managing financial resources.
Here are some key components of financial literacy:
- Budgeting: Understanding how to create and maintain a budget, track expenses, and manage cash flow.
- Saving and Investing: Knowing the importance of saving for the future and understanding different investment options to grow wealth over time.
- Credit Management: Understanding how credit works, including credit scores, credit reports, and how to manage debt responsibly.
- Financial Planning: Being able to plan for short-term and long-term financial goals, such as purchasing a home, paying for education, or preparing for retirement.
- Risk Management: Recognizing the importance of insurance and other strategies to protect against financial loss.
Financial literacy is essential because it equips individuals with the knowledge and skills to manage their finances effectively, reducing the risk of financial difficulties and improving overall financial well-being. For youth, especially those preparing for college and entering the workforce, financial literacy provides a foundation for making sound financial decisions that can lead to financial independence and stability.
Importance: Why is financial literacy essential for youth?
Financial literacy is crucial for youth as it provides them with the necessary tools and knowledge to make informed financial decisions that will impact their futures. Understanding how to budget, save, invest, and manage debt is essential for achieving financial stability and independence. For those preparing for college or entering the workforce, these skills are particularly important as they navigate significant financial responsibilities for the first time, such as student loans, credit cards, and living expenses.
Financial literacy also helps youth avoid common financial pitfalls, such as accumulating high-interest debt and falling victim to financial scams. By equipping young people with financial skills, we empower them to plan for their short-term and long-term financial goals, reduce financial stress, and improve their overall quality of life. Additionally, financial literacy fosters economic inclusion and stability, contributing to a healthier economy and society as a whole.
One of the 14 Program Elements for the WIOA Youth Program
Financial literacy education is one of the 14 program elements for the WIOA youth program. Financial literacy education refers to activities that provide youth with the knowledge and skills that they need to achieve long-term financial stability. Financial literacy education encompasses information and activities on a range of topics, such as creating budgets; setting up checking and saving accounts; managing spending, credit, and debt; understanding credit reports and credit scores; and protecting against identify theft.
Financial Literacy Resources
- Youth Employment Resource Center (FDIC) June 2021 Resources that support financial education and access to federally insured accounts for youth participating in employment programs, particularly those funded through the Workforce Innovation and Opportunity Act (WIOA).
- Our Journey Together: Youth Financial Literacy Series September 2018
- Building Financial Capability in Workforce Programs - Webcast Series
- CFPB: Resources for Youth Employment Programs Finding answers to all your money questions.
- MyCreditUnion.gov Offers a variety of lesson plans, guides, and other financial education materials.
- Money Smart FDIC Money Smart financial education program can help people of all ages enhance their financial skills and create positive banking relationships.
- Youth Money, Your Goals Toolkit developed by the Consumer Financial Protection Bureau (CFPB). Is a set of financial empowerment materials for organizations that help people meet their financial goals by increasing their knowledge, skills, and resources.
- Money As You Grow See if your child is reaching age-appropriate money milestones. Activities to keep youth on track.
- Meet the Money Monsters, these stories introduce ideas, habits, and activities that youth will need as they grow up and start to manage their own money.
- Consumer Financial Protection Bureau
- Hit the Road Financial Adventure Hit the Road takes users on an interactive, virtual road trip across the country, but the journey is not easy. They must save and spend money wisely to complete challenges along the way.
- World of Cents Game NCUA's World of Cents is an engaging, kid-friendly game for ages 5 and up. This interactive game teaches kids about the value of money while reinforcing basic math skills.
- CashCourse is an online financial education resource designed specifically for students. It takes a whole-life approach to personal finance, offering six main areas of learning:
- Earn: Estimate financial effects of current and future employment.
- Save and Invest: Grow personal assets to build savings and financial security.
- Protect: Protect financial resources, personal property and identity.
- Spend: Manage cash flow to meet financial goals and navigate financial obstacles.
- Borrow: Control personal credit and debt.
- Pay for Education: Create and implement a strategy for funding higher education.
- Intuit for Education: Free and Interactive Curriculum
- National Center on Leadership for the Employment and Economic Advancement of People with Disabilities (LEAD Center) developed the Secure Your Financial Future- A Financial Toolkit for People with Disabilities as a universally designed tool to support people with disabilities in navigating the various phases of work and career development.
- What To Know And Do from Consumer.gov, the Federal Trade Commission, created a series of resources to help consumers, educators, advocates, and trainers to get ready for the “real world.”
- Your Financial Path to Graduation Make smarter decisions about how to pay for school.
- Map your Money Journey Understanding money is lifelong journey. Take these survey’s to see where you are on your journey today and learn about steps you can take for your future.
- CSBC Statutory Requirements for Opening Bank Accounts for Minors by State
- MyMoney.gov Included are online calculators, budget worksheets, planning checklists, and other helpful resources from the federal government for making financial decisions.
- U.S. Department of Education: College Scorecard Search schools that might be a good fit, and add to your compare list to see how they match up.
- Financial Glossaries There are a lot of financial terms, this website has complied several glossaries targeted at specific sub-groups of the financial niche.
- Youth Savings Calculator
- Savings Goal Calculator
- Compound Interest Calculator
- Arizona Central Credit Union’s Financial Calculators
- Financial Aid Calculators, numerous financial aid calculators, including a college cost projector, a savings plan designer, a student loan advisor and a loan repayment calculator.
- FAFSA Estimator
- Student Loan Calculator
- NerdWallet: Financial Calculators
- Financial Education Resources for Young People
- Financial Literacy for Youth
- Webinar: What’s in Your Piggy Bank? Motivating Young First-Time Workers to Save
- Teaching Children About Money Now, Pays Dividends Later
- The Go-To Guide for College Financial Aid, Information on financial aid for college and tips on how to help ease the burden of college expenses.
- Mapping Your Future, A free resource on career, college, financial aid, and money management.
- FAFSA, use this online form to file the Free Application for Federal Student Aid (FAFSA)
- #GetBanked The #GetBanked initiative began at the onset of the COVID-19 pandemic with the goal of informing consumers about how to open a bank account online and ensuring that people could receive economic impact payments safely through direct deposit. Through #GetBanked, FDIC collaborates with financial institutions, local governments, and community organizations to raise awareness of the benefits of bank account ownership. Use FDIC's information to learn key financial skills — and teach those skills to others.
- Financial Literacy Resources for Veterans
- Financial Literacy Education and Resource Center
- Consumer Resource Center