Introduction to Financial Literacy

Financial literacy means..

• Knowing how to manage money

• Understanding how to budget, save and spend wisely

• Helps people make smart decisions to avoid debt and plan for the future

• All of the above

How does financial literacy contribute to personal financial well-being?

• Helps you make better choices with their money

• May cause you to go into debt

• May cause you to file for bankruptcy

• All of the above

Which of these outcomes become more likely for someone with strong personal finance skills? Check all that apply.

• A person can avoid opportunity cost.

• A person can be more prepared to meet basic needs.

• A person can avoid financial decision-making

• A person can spend money thoughtfully to accumulate assets.

• A person can spend wisely to avoid financial problems.

Budgeting is ..

• understanding the importance of saving money for the future

• understanding debt

• knowing how to plan and track spending

• learning how to grow money through things like stocks and bonds

Saving is

• knowing how to plan and track spending

• understanding the importance of saving money for the future

• making thoughtful choices about what to buy

• knowing how loans and credit work and how to use them responsibly

Spending wisely is ...

• knowing how to plan and track spending

• knowing how loans and credit work and how to use them responsibly

• making thoughtful choices about what to buy

• learning how to grow money through things like stocks or bonds

Understanding debt is ...

• Knowing how loans and credit work and how to use them responsibly

• knowing how to plan and track spending

• learning how to grow money through things like stocks or bonds

• none

Investing is ....

• Learning how to grow money through things like stocks or bonds

• understanding the importance of saving money for the future

• knowing how to plan and track spending

• all of the above

Financial Literacy is important for community well-being because it alleviates poverty.

• True

• False

Financial Literacy is important for community well-being because it will increase employment opportunities.

• True

• False