Elon Academy Mu Families Financial Literacy By Ifeoma Udeh February 23, 2019

Objectives Explain what financial literacy is. Discuss how to achieve financial stability.

What is Financial Literacy? Ability to manage financial resources, primarily money, to attain financial stability, at the least.

My Money Five Source: Department of Treasury

Earn = Money Making Know your “regular” money Gross Pay – Taxes – Deductions = Net Pay Can you grow your “regular” money? Weekends Evenings

Save Start saving and form a savings habit. Pay yourself! Consider using a bank or credit union account Track your savings Plan for short-term goals (emergencies, vacation, major purchases) Plan for medium-term goals (e.g. children’s education) Plan for long-term goals (e.g. retirement)

Protect Keep important financial records in order. Beware of fraud and scams, and protect your identity. Be familiar with your bills. Consider insurance to meet your needs (e.g. health insurance).

Spending Think about your spending and develop a budget Live within your budget/means Think before you buy (why, what etc.) For big purchases (e.g. furniture) comparison shopping is recommended. Consider long-term and short-term goals

Borrowing Know your borrowing habits and what drives it. If you MUST borrow, have a plan. Pay ALL bills on time (helps build a good credit history). Consider microfinance

Plan for Life New child Retirement Higher Education – College Major health issue Death of a family member Unplanned events (natural disasters)

Budgeting Guidelines

Source Department of Treasury. https://www.mymoney.gov/Pages/default.aspx Credit Counselling Society. https://www.nomoredebts.org/budgeting-guidelines

Other Resources U.S.News: https://money.usnews.com/money/personal-finance/articles/2014/06/03/a-guide-to-creating-your-ideal-household-budget The Ways to Wealth: https://www.daveramsey.com/blog/7-signs-your-budget-needs-fresh-start