Financial Literacy is the education and understanding of various financial concepts that include personal finance and helps consumers make appropriate and prudent decisions. To have healthy finances, individuals must create and maintain a reasonable and attainable monthly budget that takes into account variable income, monthly, quarterly and yearly expenses, and purposefully saves money for emergencies and the future.
Retirement planning should begin early and purposefully. In order to decide how much is needed to sustain a desired standard of living in retirement, consult a financial planner, resources online, or an employer’s financial advisor. Knowing the end savings goal will help individuals decide how much should be set aside each month.
Insurance is a necessary piece of a healthy financial plan. There are various types of insurance that cover liability, health, life, property, dental, vision, pets, and various other areas of an individual’s life. In order to avoid paying too much for any insurance, consult the Human Resources office, internet resources, financial advisors, or credit unions.
It is wise to set aside at least 10% of monthly income in savings to protect against emergencies, save for large purchases, and be prepared for the future.
For more information about ways to be financially literate, reach out to the Career Services Office.