Financial Literacy Infographic

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FINANCIAL LITERACY

Everyone should understand money because proper management allows us to


comfortably live the way we want to. Here are some important things to know about
financial literacy.

BUDGETING

Whether you have a job, an allowance, or birthday money, it is


always important to track your spending and set up a budget.
You can track your spending with budgeting apps such as Wally
or EveryDollar.*
Once you see how you are spending your money, you will be
more conscious about what you spend it on.
Budget templates for Excel could also be found online.
A budget should consist of categories such as:
Needs
Wants
Savings
Investments
Needs vs. Wants
Needs and wants are two of the main spending categories
you should learn more about to ensure that you are spending
your money wisely.
Need: Spending money on something that is necessary to
live or function.
An example of “needs” are a water bill, your phone bill,
or groceries.
Want: Something that can improve your quality of life but
is not necessary.
An example of "wants" would be something such as
the latest iPhone or ordering take-out food every night.
Remember, you can always save for these things
while you focus on your immediate needs.
*We are not sponsored by these organizations and individuals should do their research to better determine which platform better meets their needs.

START SAVING AND



INVESTING

Spending all your money can put you in a


predicament of not being able to buy something
you need.
Spend less than you earn and save the rest.
If you are spending more than you make, you
will end up with a negative account balance.
By starting a savings account at your local bank,
you can have a safe place to put your savings.
Once you have saved a decent amount of money
you can start thinking about investing.
Investing is putting your money in a place for a
while to make it grow.
Some popular options for investing are stocks,
bonds, and real estate.
The best time to start investing is now, but
make sure to make smart investments.
Talk to your parents/guardians and ensure
that you meet the minimum requirements
to invest.
Start with a small investing goal
For example: Save your money in an APY
savings account for a year and see how your
money can grow.
The longer you leave your money, the more it
will grow!

LOANS AND

CREDIT
Sometimes to make large purchases you will need to take out a loan and pay
the loan over time.
You cannot take out a loan until you are 18.*
Loans can follow you around for a long time, so be mindful about making
large purchases.
Some examples of purchases that might require using loans are:
Buying a car
Buying a house
Financing a degree
For most loans, banks will look at your credit score to see if you qualify for
their loans.
A good credit score shows the bank that you are a trustworthy person and
will make payments on time.
Credit scores are based on an analysis of your credit history, such as:
Your purchase history
How long you have had credit.
Type of credit you use (credit cards, loans etc.)
Recent credit searches
Your credit score can range from 300-850:
300-599 is very bad
600-649 is poor
650-699 is fair
700-749 is good
750-799 is very good
800-850 is excellent
*You must be at least 18 years old to take out a loan.

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