2. America’s financial literacy
- The Federal Reserve is looking at $2.4 trillion in
unsecured debt and the numbers keep rising.
- One in 10 consumers has more than 10 credit
cards.
- One in 50 households carry more than $20,000 in
credit card debt.
- The rise in the cost of living has outpaced income
growth over the past 12 years.
3. America’s financial literacy
• Two out of 3 households will probably fail to
realize life goals
• Financial illiteracy is passed to the next
generation
• Only five states require high school students
to take a class about money (VA is one of
them)
5. Financial literacy
• The ability to effectively evaluate and
manage one’s finances in order to make
prudent decisions toward reaching life’s goals
• The understanding of:
- Money
- Cash flow
- Basic economic/financial concepts
- Debt/risk management
6. Achieving financial literacy
• Five Key Areas of Personal Finance:
- Money and income
- Money management
- Spending and debt
- Savings and investments
- Risk management
7. Money and income
• Time is money
• How many hours do you need to work to pay
for your mortgage, car insurance, electricity
bills, extras, etc?
12. Financial literacy isn’t just
a matter of knowing what you
have and knowing your options.
It is a matter of planning for
life’s milestones.
Financial literacy isn’t just
a matter of knowing what you
have and knowing your options.
It is a matter of planning for
life’s milestones.
14. Buying your first home
• Establish good credit
• Understand “real costs”
• Assess risks
15. Getting married
• Understand “financial partnership”
• Establish separate and joint credit and bank
accounts
• Create wills and trusts
• Identify beneficiaries
• Choose owners on title assets
16. Financing a family
• Budget
- Education, health care, child care
• Manage risk, insurance
• Create wills
• Instill financial literacy
17. Starting a business
• Understand
- cash flow
- expense timing
• Manage income and expenses
• Taxes
18. Planning for Retirement
• Determine how much money you will need.
• Determine where your retirement income will
come from.
• Devise a budget and investment strategy to
help you meet your goals.
19. Preparing a will
• Designate beneficiaries
• Determine asset distribution
• Identify insurance
23. Financial Literacy:
Knowing What You
Need To Know To Achieve
Your Financial Goals
Financial Literacy:
Knowing What You
Need To Know To Achieve
Your Financial Goals