Archive for financial literacy

Micro Money Lessons Teens Should Know

As teens become more independent and take on more responsibilities, they must learn about money management. Understanding the basics of personal finance can set them up for a more secure financial future. From budgeting to saving to investing, teens can learn money lessons now that will serve them well in the coming years – while with the safety net of home. This blog post shares vital money lessons you can help your teenager know.

Money Lessons for Teens:

1.Create a budget: Track your income and expenses to understand where your money is going.
2. Save early and often: Make it a habit. Even small amounts can add up over time.
3. Understand credit: Know the difference between good and bad debt, and the importance of building good credit.
4. Avoid overspending: Learn the difference between needs and wants.
5. Understand investing: Learn how investing can help you grow your money over time. 
6. Understand taxes: Understand how much you are paying in taxes and how to file your taxes correctly.
7. Earn and manage money responsibly: Save a portion of your earnings, and spend the rest wisely.
8. Be prepared for emergencies: Start building an emergency fund to cover unexpected expenses. 
9. Shop around: Avoid making impulse purchases. Compare prices and look for discounts and promo codes. 
10. Give back: You can make a difference, even on a tight budget.

These are just a few examples of financial goals that may be appropriate for teenagers. It’s important to set goals that are realistic and achievable based on individual circumstances. Help your teen start on the right financial track with ACT 1st Federal Credit Union.

April: Financial Capability Month

April is National Financial Capability Month. Originally designated as National Financial Literacy Month in 2004, this observance has evolved to focus on financial literacy and ensure that Americans have access to unbiased and trustworthy financial education and understanding of financial services and products. This observance also includes raising awareness of consumer protection laws as well as consumer education, helping Americans recognize, avoid, and report frauds and scams.

The U.S. Treasury defines financial capability as “the capacity, based on knowledge, skills, and access, to manage financial resources effectively.” In other words, it’s your ability to put your financial knowledge and skills to work. This translation of knowledge to action (behaviors) helps you manage and protect your money, build productive financial habits, and move closer to your present and future financial goals.

Building and maintaining financial capability is a lifelong journey. It’s a cycle of learning and leveraging what you know. It’s about understanding and assessing your situation, including your beliefs and feelings about money. It’s also about processing knowledge and information, evaluating options, making informed decisions, and taking action. The more informed you are about your financial choices, the better your financial outcomes are likely to be.

No matter where you are on your financial journey, increasing your financial capability can be as simple as:

Under the Federal Credit Union Act, promoting financial literacy is a core credit union mission. While credit unions serve the needs of their members and promote financial literacy within their communities, the NCUA works to reinforce credit union efforts, raise consumer awareness and increase access to credit union services. The NCUA also participates in national financial literacy initiatives, including the Financial Literacy and Education Commission(Opens new window), an interagency group created by Congress to improve the nation’s financial literacy and education.

In addition, the NCUA partners with the Federal Deposit Insurance Corporation and the U.S. Department of Education in a Youth Financial Education Collaboration Agreement aimed at helping students and families save for college and encouraging the development of smart money habits. The NCUA is also a national partner of the Jump$tart Coalition(Opens new window) for Personal Financial Literacy.

Related Resources:

Financial Literacy Tools and Resources

MyMoney.gov

FDIC Money Smart

ConsumerFinance.gov

Youth.gov

Hidden Savings: Commonly Overlooked Tax Deductions

Budget, Learn, Grow: Free Financial Literacy Essentials

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