April is Financial Literacy Month

What does this mean? 

Why is it important to you and your family?

Financial Literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turns it into more) and how that person donates it to help others.

The keys to managing your money include:

  • Pay yourself first.

    • Before you spend one dollar on rent/mortgage, car payment, credit cards or any other bill, set aside $10 out of every $100 or ten percent of your take home pay.
    • Make savings automatic by setting up direct deposits.
  • Build an emergency savings fund.

    • Experts agree that three to six months of your monthly living expenses is the ideal. However, for most people that is not possible but almost anyone can manage to set aside $200-$500.
  • Reduce your spending leaks.

    • Many of us spend money on things that are not necessary to life. Think of stopping for coffee, sweet tea or soda and of course fast food. If you reduce some of those items, you can put money you are already spending into your emergency fund. Spending Leaks Worksheet

Talking about money with your family

It is vital that families begin talking about money while children are young to help them be ready for the challenges they will face as adults. Make it simple and age appropriate. Pointers for Parents at Every Stage

  • Make the concept of money real by showing youth how much things cost like your electric or cable bill.
  • Show them an ATM machine and explain how you have to put money into your account from working so you can have cash when you need it. Bring them inside your financial institution for a tour and to take some of the mystery out of what happens there.
  • Use going to the grocery or retail store as way to show them how much things cost, to compare prices and when older, what discounts and clearance items are all about.
  • Involve your children in budgeting by planning a family activity that will require them to give up something like a trip to McDonalds or the movies to save for an activity that will leave a memory.

Increasing your own financial knowledge

At the Center for Smart Financial Choices (CFSFC) we help individuals find out what their habits and attitudes are towards money and the things they value most in life. Then, we guide them to accomplish the goals they desire and fulfill our vision of “Helping people build assets leading to a comfortable financial future for them and their family.” We offer this assistance to adults through a Financial Wellness Checkup.

 Celebrate Financial Literacy Month by “Investing in our Youth”

on April 18, 2017.

 Register now

Youth-Our Future Promise

The future promise of any nation can be directly measured by the present prospects of its youth.

President John F. Kennedy acknowledged that the present prospects of our youth will affect the future.  How are we doing in this area? Youth unemployment is very high for those 16-24 without advanced education.  Millions of youth are unable to find full-time opportunities that match their skills, or use their formal job training or education. All of this comes at great cost to the future with college graduates holding a diploma and an enormous financial burden of credit card and student loan debt.

One key to building a strong future for youth is increasing their financial capabilities. The economic system of the world today requires youth to be taught how to handle money at home and in school. Organizations like the Center for Smart Financial Choices, Junior Achievement, NC Jump$tart, banks and credit unions work to help youth through financial literacy initiatives.

One of our scholarship participants Miah shared what she wants for her future, “College is a time to learn, discover, find myself and create new paths. One thing I will work to not discover, find or create is unnecessary debt because I want total control in my choices, life and future.”

 Help Miah and other youth like her succeed by contributing to our #GivingTuesday campaign.

 GIVE NOW!

CFSFC helps start youth on the path to financial competency by introducing and expanding on the basic concepts of: Earn, Spend, Save/Invest, Borrow and Protect. Our workshops offer this education beginning at age ten and continue through college. We help prepare high school seniors for the cost of going to college through our Financial Education Scholarship Program.

Fifth Graders explore budgeting

Fifth Graders explore budgeting

To “cultivate our youth for a future of financial wellness” requires all of us to strive to share positive personal finance knowledge before they move to full adulthood. This is a crucial life skill that will ensure a comfortable financial future for all youth.