1. MoneyCounts: A Financial Literacy Series
Financial Literacy Overview (FLO)
11-A Grange Building
University Park, PA 16802
financialliteracy.psu.edu

2. Description
The Pennsylvania State University is committed to provide students with the resources needed to make informed decisions regarding their money management
But what is Financial Literacy? What are the main principles that a student should explore? And what is the purpose of becoming financially literate?
Financial Literacy is not just about managing your money, it dives deep to help you question your attitudes and values toward money and guides you to reach a life full of financial security and freedom

3. Learning Outcome Identify the core competencies for financial literacy
Explore the knowledge using the KAB concept
Knowledge, Action, Behavior
List practical strategies to becoming financially literate
Discuss financial security and freedom goals

4. Why do we need financial literacy?
For your future financial freedom!

5. KAB Principle
Financial Literacy
Knowledge
Action
Behavior

6. Core Competencies

7. Earning – Core Competency #1
Knowledge
Action/Behavior
Gross versus net paycheck
Benefits and taxes
Education is important
Understand your paycheck
Verify and adjust your exemptions and deductions on your W4 (withholding)
Learn about potential benefits and taxes
Invest in your future, plan for your career through education – search the market

8. Saving & Investing – Core Competency #2
Knowledge
Action/Behavior
Saved money grows
Banking – saving and checking accounts
Long-term financial planning
Eliminate or reduce waste
Start saving early, pay yourself first
Comparison shopping for a financial institution – reconcile your accounts
Plan for retirement, child education, renting versus owning a home
Replace with saving

9. Spending – Core Competency #3
Knowledge
Action/Behavior
Difference between needs and wants
Develop a quantitative awareness of your spending habits
Get the most/best value for your money
Develop a spending plan
Track spending habits
Live within your means
Understand the social and environmental impact of your spending decisions

10. Borrowing – Core Competency #4
Knowledge
Action/Behavior
Distinguish net income from loans
Cost of borrowing: Penalty, interest, late fee, surcharges (PILS)
Amortization schedules
Credit Score – FICO: Equifax, Experian, TransUnion
Credit cards
Borrow only what you need (rather than what you want)
Avoid high cost loans, penalties, late fees, and surcharges
Minimize interest payments
Get your free annual report, check your financial grade, review and correct if necessary
Shop for low interest cards, use only in emergencies, avoid paying PILS

11. Protecting – Core Competency #5
Knowledge
Action/Behavior
Risk management and insurance coverage
Identity theft
Fraud and scam
Shop for insurance, review and update insurance, build up an emergency fund
Watch for your social security number and cards, your date of birth, and your banking information
It is too good to be true, it most certainly is

12. Budgeting

13. Increase income

14. Decrease Spending

16. Quick tips for students
Find an app to help you create and stick to a budget
Use bank accounts that offer free saving, checking, and ATM services & watch for overdrawing funds
Avoid impulse buys
Find free social activities on campus
Use the free CATA Bus service
Pack healthy snacks
Establish an emergency fund
Pay credit card balance in full and on time

17. Scholarships
Scholarships are a form of gift aid that does not need to be re-paid. The Penn State scholarship awarding process is very de- centralized, with each College having its own awarding process.
aid/scholarships

18. Health Insurance Requirements
Penn State requires all international students to have health insurance and will be implementing a University-wide health insurance requirement for all students during the academic year.
wellness/health-insurance

19. Student Financial Responsibility Agreement
Penn State students have to sign a financial responsibility agreement prior to enrolling in classes to certify their obligation to pay all outstanding balance, together with all fees and costs, due Penn State
ublic/Docs/FRA.pdf

20. Elements of financial well-being
Present
Future
Security
Control over day-to-day, month-to-month finances
Capacity to absorb financial shock
Freedom of choice
Financial freedom to make choices to enjoy life
On track to meet financial goals

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