Financial literacy affects your financial decisions every day. If you want to make informed decisions, it is crucial that you understand the fundamental concepts that underpin financial knowledge. Read the summary of the national standards, developed by the Council for Economic Education (CEE).
Soon enough you’ll be making your own money, if you aren’t already. It’s important to understand the different ways you can earn money and what you need to know to reach your goals.
You already do it. You buy snacks and movie tickets. You get your haircut. Your parents may be helping out now, but soon you’ll be doing it on your own. It is helpful to understand how to make informed decisions about spending.
You may already know that saving is a good thing. However, do you know how much you should save and what should you save for?
Credit allows people to borrow money to buy goods and services today and pay for them later, with interest. Whether or not you want to get a credit card, it is good to know how loans work, what a credit score is, and when and if borrowing money is a good decision for you.
By understanding the basics of investing—like not putting all of your eggs in one basket—you will be ahead of the game when it comes to the different types of financial products out there. Have you ever heard of a 401(k) or a Roth IRA? They might soon be in your future.
What would happen if you lost your phone? Would your cell phone company replace it or would you have to pay for a new one? It’s good to know why people have insurance and whether and when you might need it.
