What is important to know about Financial Literacy?

     Financial literacy is a language that students should be able to comprehend, especially with today's society being so keen on having and making money.  Financial literacy should not just be for those who have a surplus of money, but also for people who are struggling with it or even just passing by in life.  It is important that the youth of today could learn the fundamentals of financial literacy and to add onto it as they get older.  According to the article "Money Matters", there has been a proposed plan where kindergarteners learn about counting money and currency, and later on in eighth grade go onto learning more about economics and finances.  This will allow them to be more knowledgeable in the financial world and will allow them to take on financial opportunities they would know have been able to recognize without the classes.  Financial literacy also teaches people about entrepreneurship, and as "Money Matters" mentions that people will "be able to create products, ideas, and jobs that artificial intelligence can't replace". Upon meeting my group we were able to conclude that there are some basic concepts of financial literacy that are important to grasp like credit score, saving money, managing debt, and a checking account.  There are plenty more aspects of financial literacy that are important, but these aspects are important as we are just being more familiarized with the financial world. 


    Establishing a good credit score is important for shifting into the life of adulthood where you need to build credibility so that the financial world can trust you. It is essential for making big purchases, making loans, and having a good score is overall beneficial as your traverse through the financial world. 

    In saving money, there is more profit being made than you earn.  When you have a job there are deductions to the money that you earn, so it is simply better to save what you have earned already.  While it is important to know about saving for emergency funds, saving money for it to accumulate, it is also important to know to invest into retirement.  Most Americans do not have enough money saved up for retirement, but it is never too late to start saving now.  A general rule of thumb for budgeting in order to save money is to have 70% of your monthly earnings to go into general fees, 20% into emergency money, and 10% into retirement or investment funds. 
    
    While it is important to know about how to improve your financial life and maintain it, it is also important to know what to do when you've reached rocked bottom or are spiraling into debt.  Having debt can certainly keep people up at night and some children may even have parents in debt without them even knowing.  With them having this knowledge it can probably help push forward an initiative for children to feel even a bit less helpless in a financial situation and to know the protocols to prevent it from happening in their own lives. 


    As rising adults it is important for us to be knowledgeable in checking accounts where we could store our money and be able to use it for transactions.  It is important to create a good relationship between you and your bank and also to choose the right plans for yourself that fit your lifestyle.  The world of financial literacy is a large one to tackle, but it gives so many opportunities when you know what you're getting yourself into. 





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