Financial literacy isn't just about speaking the language of money; it’s about having the tools to assess where you are and where you'd like to be financially and building the confidence to make important personal finance decisions. The President’s Advisory Council on Financial Literacy defines personal financial literacy as, "The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being." (2008 Annual Report to the President). Personal financial literacy is more than just being able to balance a checkbook, compare prices, or get a job. It also includes skills like creating a long-term vision and planning for the future, and the discipline to use those skills every day.
Financial literacy can help you:
- Create specific, measurable goals for yourself.
- Make smart investment decisions to align with your goals.
- Choose the right accounts to organize your income.
- Take control of spending habits.
- Understand the full spectrum of financial resources available.
Financial Literarcy Resources:
- The Emotional Side of Money
- Financial Goals Worksheet
- Financial Planning and Goal-Setting Overview
- Glossary of Financial Terms
- Recommended Resources for Financial Literacy
- Evaluating Savings and Checking Account Options
- Steps for Managing Debt