FINANCIAL LITERACY MONTH

National Financial Literacy Month

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National Financial Literacy Month

April was National Financial Literacy Month, which is designed to create awareness about the importance of personal financial education. Throughout the month, we shared different financial tips designed to enhance your financial well being. Be sure to check out the page for financial tips and children's stories.

Money Strategies

  1. Have an emergency fund for unexpected events. These could include a job loss, car repairs or unplanned medical bills.
  2. Pay off the “right” debt first. Paying off a debt with a high interest rate usually makes much more sense than paying off a low interest debt.  Experts suggest tackling your high-rate credit cards first, then moving on to lower rate debt, like cars loans and mortgages.
  3. Maximize your employers 401K contribution. Be sure to contribute at least the percentage they are matching, to take full advantage of that benefit. By not contributing, you are leaving free money on the table.
  4. Avoid the “lifestyle creep”. When your income increases, you may find yourself splurging more often than you used to. This is “lifestyle creep”.  Instead, take that extra money and pay down debt or increase your savings goals.
mother and daughter looking over finances week 1

Steps to Budgeting

  1. Set your financial goals. Determine your financial goals by breaking them into short term and long-term goals. Short term is 0-5 years and long term is anything over 5 years.
  2. Track all your spending. Write or record all transactions for 30 days. Remember to include the little expenses too (coffee, pop, snacks etc.).
  3. Create spending categories. Examples of spending categories would be housing, transportation, savings, entertainment, daycare etc.
  4. Track your income. Track all the income that you receive monthly. If your income varies, compute the average income you receive each month over a 12-month period as your monthly income. Do not forget to include alimony, child support, social security, or any other monetary assistance.
  5. Reevaluate your budget frequently. Examine your budget and make the necessary adjustments on at least a quarterly basis. Remember, the goal is to spend less than you make.
man and woman looking at a laptop week 2

Budgeting Guidelines

budgeting pie chart week 2

Teaching Your Child How to Save

mother and daughter stacking coins near a piggy bank week 3

Younger Savers

  1. Start the conversation. Explain the differences between needs and wants. Show them items in your home that would illustrate these examples. All the “extra’s” are considered wants, and people often have to save for these.
  2. Start with a Piggy Bank. Set a goal of filling the bank with dollars and coins. Allowance can be a great tool to teach children about money if the structure works for your household.
  3. Open a Savings Account.  Using the money from their piggy bank, open a savings account for them. Be sure to show them how much money was deposited and how the value can grow in their account.
  4. Use Savings Jars. Let them know they must save up for items they desire. Encourage multiple savings jars for multiple goals. That way they can decide how much money to put towards each goal, and that it takes time to be able to buy items they want.
  5. Lead by Example. The best way to teach your child about saving money is leading by example. Have your own savings jar that you use for something “extra” and add funds regularly. When shopping, show them how items cost different prices and how buying one item makes better sense than buying the other.

More Youth Learning

teen boy boy on his phone holding a debit card week 3

Teen Savers

  1. Make saving money a rule. Have them set aside a certain percentage of anything they earn or receive, that goes into a “hands-off” savings account for later. Have financial discussions about money and the importance of saving.
  2. Match kids savings deposits. It can be a great incentive for teens to save money with a matched percentage amount from parents. The percentage match is up to you.
  3. Teach them how to budget and make savings a budgeting piece. Tracking spending can be a real eye opener, at any age! Encourage them to think about how they’re spending and how much faster they could reach their savings goal if they were to change their spending habits.
  4. Let them make money mistakes. When you put teens in charge of their money, there will be some spending blunders. But using these money mistakes creates a teachable moment. It’s tempting to step in and steer them another way, but they will learn what not to do in the future.
  5. Lead by example. If you want your teen to become a good saver, set the example. Do you have your emergency fund established (3-6 months of expenses)? Can you increase or start your 401(k)? How about a family savings goal, such as a new tv or a family vacation?

More Teen Learning

Financial Boardgames (Ages 5-8)

  1. The Allowance Game (ages 5-10)
  2. Monopoly Jr (ages 5+)
  3. Buy It Right (ages 6+)
  4. Cashflow For Kids (ages 6+)
  5. Card Game: Exact Change (ages 6+)
  6. Money Bags (ages 7+)
  7. Pay Day (ages 8+)
  8. Making Change Octominoes (ages 7+)
  9. Managing My Allowance (ages 8+)
  10. The Game of Life (ages 8+)

Financial Boardgames (Ages 9+)

  1. Monopoly -various versions (ages 9+)
  2. Act Your Wage! (ages 10+)
  3. The Stock Exchange Game (ages 10+)
  4. Millionaire Maker Board Game (ages 10+)
  5. The Stock Exchange Game (ages 10+)
  6. Millionaire Maker Board Game (ages 10+)
  7. Act Your Wage! (ages 10+)
  8. The Stock Exchange Game (ages 10+)
  9. Millionaire Maker Board Game (ages 10+)
  10. Thrive Time for Teens (ages 13+)
  11. Cashflow 101 (ages 14+)
  12. Bulls and Bears (ages 15+)

Tips to Raise Your Credit Score

  1. Credit does not have to equal debt. On a credit card,it is best to pay off your balance in full each month. By doing so, you will avoid finance charges. This will ensure you have good credit history when you need it.
  2. Pay your bills on time. Regular, consistent loan payments including credit cards, will raise your credit score over time. Your payment history is the largest percentage of your credit score.
  3. Try to keep your credit utilization low. Credit utilization refers to how much of your available credit that you use at a time. Keeping this number low will have a positive effect on your credit score over time.
  4. Time is Key. It takes time to build a credit history. Always have a plan on how to pay your debt back when you take it on. In addition, establishing a credit history early and creating longevity will impact your score in a positive way.
credit score chart week 4

The Makeup of a Credit Score

vantage score pie chart

Story Time Videos