Are You Financially Literate?
By: Nancy | November 20, 2008 | Category: Money
I used to think it was just a cliché. But in the middle of this financial crisis we're facing together in the U.S. right now, the phrase "Most Americans are just two paychecks away from financial disaster" seems frighteningly true.
You don't have control over when a job or income loss or a serious illness will throw you into financial trouble. But not having a handle on the basics of saving and investing, taxes, mortgages and insurance can leave you even more vulnerable when bad times—or scam artists—hit.
Right now, more than any time in our recent memories, it’s critical to brush up on financial literacy. My office works with a couple organizations that are helping adults and kids do just that.
The U.S. Financial Literacy and Education Commission operates MyMoney.gov, a site to help you make sense of practical money management, financial planning, saving for retirement, and getting familiar with financial scams so you can avoid them. Their online calculators help you estimate college costs, how much mortgage you can afford, what your Social Security benefits will be at retirement time and a lot more.
Through MyMoney.gov and 1 (888) MY MONEY, you can also get the free "My Money Toolkit," a collection of popular booklets that can help you learn to get your spending, saving and investing on track. You can check out the publications online or order copies for yourself, your friends or family.
The Jump $tart Coalition is involved in providing resources to help students kindergarten through college age grow up learning and exercising practical money skills. Whether you're an educator or a parent wondering how to start teaching your kids about money and financial responsibility, Jump $tart lists a terrific collection of fun websites for kids that'll teach them about saving, investing and making smart choices as consumers.
One other financial literacy website that I like a lot is from Visa. PracticalMoneySkills.com takes a comprehensive approach to teaching adults and kids better money management skills. The site is available in English, Spanish and Chinese and features videos and articles covering topics like setting a child's allowance, financially weathering a divorce, reducing your debt and understanding compound interest.
What do you wish you'd learned earlier in your life about managing your finances?
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I was lucky. In high school we had to take consumer ed and that class dealt with managing your money.
I guess the one thing I wish I had known earlier is how to be content with what I have. I have learned that I do not need a lot of money or the newest and greatest thing in the world to be happy.
Thomas
Comment Permalink | Post a New CommentI guess in tough times like these we all learn lessons. Maybe dealing with our own finances more effectively will be the very expensive lessons learnt by the current situation. Personnally I know I am taking a different view on my financial situation and trying to make a better life for myself especially as the industry I have worked in for a number of years has been heavily affected by recent events.
Annabel
<a href="http://www.tradeforexfromhome.com">http://www.tradeforexfromhome.com</a>
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