Welcome to Financial literacy

How to Teach Financial Literacy: 15 Steps (with Pictures)

2021.01.05 16:06


MESSAGES LOG IN

Log in

Facebook Google wikiHow Account No account yet? Create an account EXPLORE Random Article Categories Arts and Entertainment Cars & Other Vehicles Computers and Electronics Education and Communications Family Life Finance and Business Food and Entertaining Health Hobbies and Crafts Holidays and Traditions Home and Garden Personal Care and Style Pets and Animals Philosophy and Religion Relationships Sports and Fitness Travel Work World Youth About Us HELP US Community Dashboard Write an Article Request a New Article More Ideas... EDIT Edit this Article Home Random Browse Articles About wikiHow Easy Ways to Help Approve Questions Review Tech Feedback Fix Spelling Quiz App More Things to Try... Log in / Sign up Terms of Use We use cookies to make wikiHow great. By using our site, you agree to our cookie policy . Cookie Settings Okay ✖ wikiHow is where trusted research and expert knowledge come together. Learn why people trust wikiHow Categories Family Life Parenting Teaching Children Skills

How to Teach Financial Literacy

Download Article Explore this Article parts 1 Introducing Budget Management 2 Explaining Credit and Debt 3 Spelling out Savings and Investments Other Sections Questions & Answers Related Articles References Co-authored by Samantha Gorelick, CFP®

Last Updated: December 5, 2020 References

Download Article X

This article was co-authored by Samantha Gorelick, CFP® . Samantha Gorelick is a Lead Financial Planner at Brunch & Budget, a financial planning and coaching organization. Samantha has over 6 years of experience in the financial services industry, and has held the Certified Financial Planner™ designation since 2017. Samantha specializes in personal finance, working with clients to understand their money personality while teaching them how to build their credit, manage cash flow, and accomplish their goals.

There are 19 references cited in this article, which can be found at the bottom of the page.

This article has been viewed 13,979 times.

Learning how to manage personal finances is vital, but financial literacy is rarely taught in schools. Whether your child or student is in elementary school or in their late teens, teaching them about finances can set them up for success later in life. Start by teaching them about budgeting and managing expenses. Explain how credit works, why it’s important, and how to use credit cards responsibly. Stress the importance of saving, and introduce the basic ways to invest money. Since money management can be abstract and complex, use apps and other resources to simulate concrete real-world scenarios.

Steps

Part 1 of 3: Introducing Budget Management

{"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/cd\/Teach-Financial-Literacy-Step-1.jpg\/v4-460px-Teach-Financial-Literacy-Step-1.jpg","bigUrl":"\/images\/thumb\/c\/cd\/Teach-Financial-Literacy-Step-1.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-1.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 1 Explain how to accurately estimate income and expenses. Make a spreadsheet or write a sample monthly budget with a pen and paper. List total income, and break expenses up into categories, such as car payments, insurance, a cell phone bill, and entertainment. [1] X Research source Mention that income and expenses can fluctuate month to month, so tracking them over time is important. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/3\/3a\/Teach-Financial-Literacy-Step-2.jpg\/v4-460px-Teach-Financial-Literacy-Step-2.jpg","bigUrl":"\/images\/thumb\/3\/3a\/Teach-Financial-Literacy-Step-2.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 2 Make the sample budget relevant for your student or child. For instance, include your teenager’s actual income and spending from last month. List after-tax income from their part-time job and add up their car insurance, cell phone bill, clothes, haircut, and money spent going out with friends. [2] X Research source Start with these basic examples, then introduce a more complex sample budget that includes rent, utilities, and groceries. For younger students, use simple values, such as a $10 weekly allowance and candy, toys, and other small expenses. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/1\/10\/Teach-Financial-Literacy-Step-3.jpg\/v4-460px-Teach-Financial-Literacy-Step-3.jpg","bigUrl":"\/images\/thumb\/1\/10\/Teach-Financial-Literacy-Step-3.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 3 Explain the difference between a need and a want. Tell your learner that housing, utilities, and other core bills are spending priorities. If money’s tight, paying rent or car insurance is more important than going out to eat or buying a new cell phone. [3] X Research source Subtract their expenses from income, and discuss how balancing needs and wants impacts their budget. Ask them to identify needs that take priority and wants that can be cut to save money. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/2\/25\/Teach-Financial-Literacy-Step-4.jpg\/v4-460px-Teach-Financial-Literacy-Step-4.jpg","bigUrl":"\/images\/thumb\/2\/25\/Teach-Financial-Literacy-Step-4.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-4.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 4 Show them how to make bill payments. Mention that the most common ways to pay bills are via check or debit. Show them a physical check and explain how to fill in the date, payee, payment amount, and signature fields. Then go to an online bill payment portal and explain how to fill in debit card billing information. [4] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/a\/a7\/Teach-Financial-Literacy-Step-5.jpg\/v4-460px-Teach-Financial-Literacy-Step-5.jpg","bigUrl":"\/images\/thumb\/a\/a7\/Teach-Financial-Literacy-Step-5.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-5.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 5 Introduce the importance of saving money. While saving money is a distinct topic with its own lesson plan, you’ll need to mention it when you explain budgeting. Let them know that saving 10 to 20 percent of their income is crucial, and they’ll need to save more of their income as they get older. [5] X Research source Include specific reasons to save, such as for an emergency, a down payment on a home, and retirement. You can also teach them to create different savings to help them save for multiple goals. Show them that they can even physically put money into separate jars or envelopes to keep track of how much they've saved. [6] X Expert Source Samantha Gorelick, CFP®
Financial Planner Expert Interview. 6 May 2020.
{"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/2\/20\/Teach-Financial-Literacy-Step-6.jpg\/v4-460px-Teach-Financial-Literacy-Step-6.jpg","bigUrl":"\/images\/thumb\/2\/20\/Teach-Financial-Literacy-Step-6.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-6.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 6 Use budgeting resources to simulate real-world scenarios. After covering the basics, have your learner create and manage hypothetical budgets using smartphone apps. Personal finance simulators can provide accessible, concrete examples and reinforce budget management skills. [7] X Research source For example, use the Budget Challenge app, which is free for iOS and Android devices: https://www.budgetchallenge.com . Advertisement

Part 2 of 3: Explaining Credit and Debt

{"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/2\/25\/Teach-Financial-Literacy-Step-7.jpg\/v4-460px-Teach-Financial-Literacy-Step-7.jpg","bigUrl":"\/images\/thumb\/2\/25\/Teach-Financial-Literacy-Step-7.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-7.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 1 Define credit and its broad impacts on life. Explain that credit is when a lender gives you money and expects you to pay it back by a due date or with interest, which is an added percentage. Tell them that if they don’t repay a line of credit, they’ll have a harder time getting leases, mortgages, cars, jobs, and other life essentials. [8] X Research source Understanding credit is an important first step towards financial literacy. If the person already has some debt, you can also help them come up with a basic payment plan for handling that debt. [9] X Expert Source Samantha Gorelick, CFP®
Financial Planner Expert Interview. 6 May 2020.
{"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/e\/e1\/Teach-Financial-Literacy-Step-8.jpg\/v4-460px-Teach-Financial-Literacy-Step-8.jpg","bigUrl":"\/images\/thumb\/e\/e1\/Teach-Financial-Literacy-Step-8.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-8.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 2 Describe how interest works. Explain that they won’t have to pay interest if they pay off a credit card balance by its due date. Mention that the better credit you have, the lower your interest rate will be on credit cards, mortgages, and car loans. Explain that interest on a loan can capitalize if it’s not paid, which is when it becomes part of the principle, or original loan amount. [10] X Research source Compare a credit balance with library books to help them understand. If they return the book they borrowed, they won’t have to pay extra. If they keep the book past its due date, they’ll have to pay extra, or interest. [11] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/0\/06\/Teach-Financial-Literacy-Step-9.jpg\/v4-460px-Teach-Financial-Literacy-Step-9.jpg","bigUrl":"\/images\/thumb\/0\/06\/Teach-Financial-Literacy-Step-9.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-9.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 3 Explain how credit scores are calculated. Tell your student that it takes time to earn a good credit score. Explain that the score is based on payment history, amounts owed, length of credit history, new credit and recently opened accounts, and types of credit in use. Stress that a low number will negatively impact their ability to get loans, leases, jobs, and other necessities. [12] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/c0\/Teach-Financial-Literacy-Step-10.jpg\/v4-460px-Teach-Financial-Literacy-Step-10.jpg","bigUrl":"\/images\/thumb\/c\/c0\/Teach-Financial-Literacy-Step-10.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-10.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 4 Stress the importance of using a credit card responsibly. Let them know that having a credit card is an important part of building credit, but they must use it responsibly. Tell them they can’t use the card to make a purchase they can’t afford. Remind them of the library book analogy to stress the importance of paying of a balance by the due date. [13] X Research source Mention that if they don’t pay off a balance and credit card debt piles up, their credit score will take a major hit. Advertisement

Part 3 of 3: Spelling out Savings and Investments

{"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/2\/2d\/Teach-Financial-Literacy-Step-11.jpg\/v4-460px-Teach-Financial-Literacy-Step-11.jpg","bigUrl":"\/images\/thumb\/2\/2d\/Teach-Financial-Literacy-Step-11.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-11.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 1 Discuss the importance of saving and growing money. Remind them of the reasons that they need to save, from emergencies to retirement. Explain that money can grow when invested properly. Mention that, while there are risks, if they invest $10,000, they can earn tens of thousands of dollars over the course of 20 years. [14] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/7\/7d\/Teach-Financial-Literacy-Step-12.jpg\/v4-460px-Teach-Financial-Literacy-Step-12.jpg","bigUrl":"\/images\/thumb\/7\/7d\/Teach-Financial-Literacy-Step-12.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-12.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 2 Describe how checking and savings accounts work. Explain that a checking account is primarily used for making payments and a savings account is for holding money. Mention that bank accounts earn interest, and a savings account earns more interest and should be left alone. [15] X Research source Teach them to automatically put away a little money each time they receive any. For instance, if they're working, they might put $25 out of each paycheck into a savings account. [16] X Expert Source Samantha Gorelick, CFP®
Financial Planner Expert Interview. 6 May 2020.
{"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/c6\/Teach-Financial-Literacy-Step-13.jpg\/v4-460px-Teach-Financial-Literacy-Step-13.jpg","bigUrl":"\/images\/thumb\/c\/c6\/Teach-Financial-Literacy-Step-13.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-13.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 3 Explain the various types of investments. Tell your learner that, as they get older, they should think about investing money in the stock market. Let them know that there are risks, but investments are a good way to grow money for retirement. Explain that there are a variety of ways to invest money, and go over the basic types of investments. [17] X Research source Stocks are when you purchase a small amount of ownership in a company. If the company performs well, your investment becomes more valuable. Mutual funds and exchange-traded funds (ETFs) are pools of money from lots of investors that are used to purchase a diverse range of investments. Since they hold dozens or hundreds of securities, or investments, they’re less risky than purchasing stock in a single company. Bonds are when you lend money to a government or a business for a specific length of time at a fixed interest rate. While they’re lower risk, bond earnings are lower-yield investments. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/c8\/Teach-Financial-Literacy-Step-14.jpg\/v4-460px-Teach-Financial-Literacy-Step-14.jpg","bigUrl":"\/images\/thumb\/c\/c8\/Teach-Financial-Literacy-Step-14.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-14.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 4 Discuss risk and diversification. After introducing basic types of investments, tell your learner that each has a degree of risk. If they invest in 1 company that goes under, their investment will lose value. In order to lower their risk, they need to diversify, or invest in many companies and other investment categories (such as natural resources or real estate). [18] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/0\/0e\/Teach-Financial-Literacy-Step-15.jpg\/v4-460px-Teach-Financial-Literacy-Step-15.jpg","bigUrl":"\/images\/thumb\/0\/0e\/Teach-Financial-Literacy-Step-15.jpg\/aid9668898-v4-728px-Teach-Financial-Literacy-Step-15.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":" div class=\"mw-parser-output\" p License: a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\" Creative Commons \/a br \n \/p p br \/ \n \/p \/div "} 5 Use stock market games to simulate investing. After introducing the basics, have your student play investment simulation games. Smartphone apps can help make complex, abstract aspects of investing more concrete and accessible. [19] X Research source Wall Street Survivor is a helpful free resource: http://www.wallstreetsurvivor.com . Advertisement

Community Q&A

Search Add New Question Question What are the first things I should teach someone about managing money? Samantha Gorelick, CFP®
Financial Planner Samantha Gorelick is a Lead Financial Planner at Brunch & Budget, a financial planning and coaching organization. Samantha has over 6 years of experience in the financial services industry, and has held the Certified Financial Planner™ designation since 2017. Samantha specializes in personal finance, working with clients to understand their money personality while teaching them how to build their credit, manage cash flow, and accomplish their goals. Samantha Gorelick, CFP® Financial Planner Expert Answer I would start with explaining how credit works. If they have any debt, take a look at that and come up with a payment plan for it. I would also teach them how to build a cash savings and emergency fund, as well as how to create different saving pots for different goals. Thanks! Yes No Not Helpful 0 Helpful 0 Ask a Question 200 characters left Include your email address to get a message when this question is answered. Submit
Advertisement

Related wikiHows

How to

Calculate Daily Interest

How to

Calculate Effective Interest Rate

How to

Start a New Life with No Money

How to

Calculate Marginal Utility

How to

Calculate Cost Increase Percentage

How to

Keep Track of Your Personal Finances

How to

Prepare for Economic Collapse

How to

Write a Personal Financial Plan

How to

Calculate Price Earnings Ratio

How to

Ask Your Family for Money

How to

Become Financially Stable in Six Months

How to

Deal With Losing Your Wallet

How to

Stop Being Broke

How to

Deal with Relatives Who Take Financial Advantage of You
Advertisement

References

https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-budgeting.asp https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-budgeting.asp https://www.theguardian.com/education/teacher-blog/2013/mar/04/financial-education-teaching-resources http://www.tdbank.com/wowzone/lessons/Gr2-3Lesson3.pdf https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-budgeting.asp Samantha Gorelick, CFP®. Financial Planner. Expert Interview. 6 May 2020. https://www.usnews.com/education/blogs/high-school-notes/2014/03/03/3-ways-to-engage-high-schoolers-in-personal-finance https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-credit-and-debt.asp Samantha Gorelick, CFP®. Financial Planner. Expert Interview. 6 May 2020. More References (10) ↑ https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-credit-and-debt.asp http://www.tdbank.com/wowzone/lessons/Gr4-5Lesson3.pdf https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-credit-and-debt.asp https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-credit-and-debt.asp https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-investing.asp http://www.tdbank.com/wowzone/lessons/Gr2-3Lesson3.pdf Samantha Gorelick, CFP®. Financial Planner. Expert Interview. 6 May 2020. https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-investing.asp https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-investing.asp https://www.investopedia.com/university/teaching-financial-literacy-teens/teaching-financial-literacy-teens-investing.asp

About This Article

Co-authored by: Samantha Gorelick, CFP® Financial Planner This article was co-authored by Samantha Gorelick, CFP® . Samantha Gorelick is a Lead Financial Planner at Brunch & Budget, a financial planning and coaching organization. Samantha has over 6 years of experience in the financial services industry, and has held the Certified Financial Planner™ designation since 2017. Samantha specializes in personal finance, working with clients to understand their money personality while teaching them how to build their credit, manage cash flow, and accomplish their goals. This article has been viewed 13,979 times. 3 votes - 100% Co-authors: 6 Updated: December 5, 2020 Views:  13,979 Categories: Managing Your Money | Teaching Children Skills In other languages Español: enseñar educación financiera Print Send fan mail to authors Thanks to all authors for creating a page that has been read 13,979 times.

Did this article help you?

Yes No Advertisement Cookies make wikiHow better. By continuing to use our site, you agree to our cookie policy . Co-authored by: Samantha Gorelick, CFP® Financial Planner Co-authors: 6 Updated: December 5, 2020 Views: 13,979 100% of readers found this article helpful . 3 votes - 100% Click a star to add your vote % of people told us that this article helped them.

Related Articles

How to

Calculate Daily Interest

How to

Calculate Effective Interest Rate

How to

Start a New Life with No Money

How to

Calculate Marginal Utility


Categories Family Life Parenting Teaching Children Skills wikiHow Newsletter You're all set! Helpful how-tos delivered to
your inbox every week! Sign me up! By signing up you are agreeing to receive emails according to our privacy policy. Home About wikiHow Experts Jobs Contact Us Site Map Terms of Use Privacy Policy Do Not Sell My Info Not Selling Info Contribute

Follow Us

×

True or false?

Paying off student loans increases your credit score.

Get the Answer X

We noticed you’re using an ad blocker.

We know ads can be annoying, but they’re what allow us to make all of wikiHow available for free. Please help us continue to provide you with our trusted how-to guides and videos for free by whitelisting wikiHow on your ad blocker. If you really can’t stand to see another ad again, then please consider supporting our work with a contribution to wikiHow .

Let's do this! 548



  • Financial Literacy Definition - investopedia.com
    Financial Literacy Book Review: A globally acclaimed book on value investing (It is an investment tactic to select the under-valued stocks). Investopedia says serious physicists read about Sir Isaac Newton’s theories about gravity and motion.
  • How to Develop Financial Literacy (with Pictures) - wikiHow
    What Is Financial Literacy? Managing your money is a personal skill that benefits you throughout your life – and not one that everybody learns. With money coming in and going out, with due dates and finance charges and fees attached to invoices and bills and with the overall responsibility of making the right decisions about major purchases ...
  • Financial Literacy - Guide to Personal Finances
    What Is Financial Literacy? Financial literacy is the possession of skills that allows people to make smart decisions with their money. And don’t be misled by the word literacy. Although understanding stats and facts about money is great, no one has truly grasped financial literacy until they can regularly do the right things with money that lead to the right financial outcomes.
  • How to Teach Financial Literacy: 15 Steps (with Pictures)
    Financial Literacy 1. FINANCIAL LITERACY Anne A. Alban Family Welfare Officer Albanne_10 2. REALITY CHECK 3. ANG PERA, PARATING PA LANG… PAALIS NA! 4. NABUBUHAY A-KINSE,A- TRIENTA 5. RASON:“Culprit” Instant Gratification 6. PERSONAL FINANCE & FINANCIAL LITERACY Is nothing but knowing How to keep whatYOU earn and do More with what you Keep ...
  • What is Financial Literacy? - Definition | Meaning | Example
    Financial literacy is knowing the basic financial management principles and applying them in our day-to-day life. Financial Literacy – What does it Involve? From simple practices like keeping a track of our expenses and understanding the need to spend money if we like a product to striking a balance between the value of time saved and money ...
  • What Do You Need to Know About Financial Literacy ...
    Learning how to manage personal finances is vital, but financial literacy is rarely taught in schools. Whether your child or student is in elementary school or in their late teens, teaching them about finances can set them up for success later in life. Start by teaching them about budgeting and ...
  • (PDF) FINANCIAL LITERACY: FROM THEORY TO PRACTICE
    Thus, financial literacy affects stock ownership above and beyond the effect of cognition and the ability to perform calculations. The second important change in the Netherlands that we considered concerns the health system. A new law was passed in 2005 that introduced more freedom of choice into the Dutch health insurance system.
  • Financial literacy and stock market participation ...
    Financial literacy is a missing component in our school systems. As a result, Americans have not prepared for basic expenses. The widespread lack of a financial education is concerning.
  • Financial Literacy 101 Personal Finance Guide
    Data & research on financial education and financial literacy inc. national strategies for financial education, financial education and women, financial education in schools, consumer protection, G20, Assessing the levels of financial literacy in the population is a key component of a successful national strategy for financial education, enabling policy makers to identify gaps and design ...
  • Financial literacy in Canada - Canada.ca
    About Financial Literacy 101. Financial Literacy 101 is a service of Decision Partners. Since 2004, we've helped students succeed through personalized financial education. We work in partnership with colleges, universities, and other student-serving organizations.