Understand the basics of budgeting and saving. Learn how to read financial statements and documents. Gain knowledge on financial products such as investments and insurance.
Financial Literacy 101
Budgeting: Budgeting is the process of creating a plan to spend your money. This plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Savings: Savings is the practice of setting aside a portion of your income for future needs or goals. Having savings helps you prepare for unexpected expenses, such as car repairs or medical bills. Investing: Investing is the practice of putting money into assets with the expectation of increasing its value over time. Examples of investments include stocks, bonds, mutual funds, real estate, and commodities.
What things can you budget for?
Do you think it's important to learn about financial literacy in school?
- Yes, definitely.
- No, not necessary.
- It's important, but not necessary.
Financial literacy is not taught in most US schools, so the average American only knows basic personal finance principles. The CFA Institute has started a global financial literacy initiative to help people make better financial decisions. Financial literacy is not just about money management; it also covers topics such as investing, insurance, and taxes.
Did you know?
Most elite mario characters
What are the basics of financial literacy?
What common financial mistakes do people make?
Draw a banana driving a car and talking on a cell phone at the same time.
How have you handled money in the past?
What do you think are the most important financial lessons to learn?