Financial literacy is the ability to understand and effectively use financial skills such as saving, budgeting, and investing. The earlier you start learning the skills that encompass financial literacy, the better you will be at making well-informed decisions regarding your finances. For example, when saving for education or retirement, managing potential debt, running a business, and more.
If you are interested in learning more about financial literacy concepts, check out this EVERFI training course!
This video illustrates how college students struggle with financial literacy. Many did not know their credit score, what loan default is, and the interest rates of their loans and credit cards.
Over 85% of students surveyed did not know their credit score, whereas over 80% of students knew that Kim Kardashian was married exactly 72 days. For more financial literacy resources, click HERE.
A budget is a financial plan that will help you make smart decisions today while planning for tomorrow. This video breaks down budgeting basics. To learn more about how to create a budget, visit Student Aid Budgeting.
Grants, work-study, and scholarship might not cover the full cost of school. When more help is needed, loans come in. Watch this video to learn more about responsibilities as a borrower and what students should consider when taking out loans for college.