1. MoneyCounts: A Financial Literacy Series
10 Principles of Personal Financial Literacy
11-A Grange Building
University Park, PA 16802
financialliteracy.psu.edu

2. Description
A Young person starting out his/her future needs to know the basics of personal Financial Literacy, this workshop is to arm you with 10 principles of personal financial literacy that should guide you throughout your life.

3. Understand the “must-know” personal finance principles
Be able to apply these principles to one’s life
Assess your relationship with money management
Theory
Action
Behavior
Learning Outcomes

4. Lets watch a video!
In the Media!

5. Map Your Financial Future

6. Know Your Take Home NET Pay
Why is this important to understand now?

7. Know Your Take Home NET PAY

8. Budget Your Money

9. A Healthy Budget Sample

10. Pay Yourself First

11. Save and Invest at Early AGE

12. Needs Versus Wants

14. Don’t Borrow What you Can’t Pay Back

15. Borrow What you Can Pay Back
Student Loans
Make friends with your loan servicers
Do it early….
Understand Repayment Plans
pay- loans/understand/plans#estima tor
Use the repayment plan estimator.
Pay what you can afford. Avoid negative amortization.
Borrow What you Can Pay Back

16. Know the Rules
Rule of 20/10
Total Debts excluding mortgage should not exceed 20% of net yearly income
Monthly payment should not exceed 10% of monthly net income
Example: Your net yearly income is $60,000 your total debts should not exceed $12,000. Your net monthly income is $5,000, your monthly payment should not exceed $500
Rule of 72
To determine how long it will take for your money to double, divide the interest rate into 72
Example: an account earning 6% interest will double in twelve years
(72 divided by 6 equals 12)

17. Protect your Credit History

18. Stay Insured

19. Healthy Relationship with Money
In summary, financial well-being can be defined as a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life.
The four elements of financial well being (cfpb)
Present
Future
Security
Control over day-to-day
Capacity to absorb financial shock
Month to month finances
Freedom of Choice
Financial freedom to make
On track to meet financial goals
Choices to enjoy life
Consumer Financial Protection Bureau (Jan 2015)

20. MoneyCounts: A Financial Literacy Series
Comments and questions
11A Grange Building
University Park, PA 16802
financialliteracy.psu.edu