Financial Literacy

Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

3-6 months worth of expenses.

A need is something necessary to live, while a want is something that is desired but not essential.

Saving is setting aside money for future use, typically for emergencies or specific goals.

Investing is using money to purchase assets with the expectation of generating a return or profit over time.

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Your money grows faster when it is compounded.

A Roth IRA is a retirement savings account that allows you to pay taxes on your money before you invest it, and then your money grows tax-free.

A Traditional IRA is a retirement savings account that allows you to deduct contributions from your taxable income, but you pay taxes on withdrawals in retirement.

A budget is a plan that helps you track your income and expenses to manage your finances effectively.