What’s Financial Literacy?

Financial literacy is the ability to understand how money and finances work. From personal budgeting to investing, to paying for college, and to tax planning, it’s important to understand your finances to make sound long-term and short-term decisions. Financial literacy involves being proficient in financial concepts such as planning budgets, compound interest, the time value of money, and managing debt. Unfortunately, unless you’re an Economics and Accounting major, you’ll almost never encounter these concepts in your classes, but don’t let this be the reason for justifying financial illiteracy! The lack of financial literacy can lead to poor financial decisions which can negatively impact your life. You can help yourself by tracking your spending, and learning techniques to pay off debt, and plan for retirement.

Community Financial Fund (CFF) is a resource available to Gauchos funded by Gauchos to help you become financially successful!

The following are some interesting facts that may surprise you*:

  1. 65% of Adults don’t have a budget
  2. The total U.S. consumer debt is $2.40 trillion
  3. Nearly 1/3 of adults don’t know their credit score.
  4. The Average APR on a new credit card is 14.73 percent (that’s pretty high!).

 

*Source: http://www.financialliteracymonth.com/About/Statistics.aspx