What is Personal Finance and Financial Literacy?

According to National Financial Educators Council, they estimated that a "lack of financial knowledge cost Americans more than $295 Billion dollars in 2018."

Brian O'Connell, from TheStreet, a popular financial website, states this:

"Financial literacy is defined as being educated about money and finance, with a special focus on an individual's personal finances. Being financially literate enables you to make smarter money management decisions that lead directly to a financially secure future, one that protects the assets built by you and your loved ones."

Financial literacy can include understanding a variety of topics including but not limited to:

  • Budgeting

  • Spending (Essential and Non-essential)

  • Saving (Short-term, long-term, retirement, college, etc.)

  • Investing

  • Taxes

  • Debt

5 Questions to consider:

1) Do you have trouble creating and sticking to a budget?

2) Are you in debt?

3) Do you have an emergency fund?

4) Do you understand compound interest?

5) Do you know the value of investing?

 "Improving people's ability to make informed financial decisions by teaching personal finance and increasing access to financial education classes is more important now than ever before."

                                                     -Vince Shorb, CEO of the NFEC