Federal Aid - Understanding Financial Literacy
What is Financial Literacy?
- The ability to understand financial information and make informed decisions using various financial information. It involves understanding financial principles, including managing your financial resources effectively and responsibly. It includes an understanding of budgeting and investing concepts. Such knowledge will increase your chance for financial success.
What are Some Key Concepts of Financial Literacy?
- Time value of money
- Cost of debt, including compound interest
- Managing debt
- Financial planning
What can you do to be financially literate?
- Learn how to budget your finances (weekly, monthly, annual)
- Track your spending habits
- Learn the difference between something you “need” and something you “want” to prevent overspending.
- Learn the ABCs of debt: Always Borrow Conservatively
- Understand the cost of using credit cards
- Learn techniques to pay off debt
- Open a savings account
- Establish an emergency fund to plan for unexpected expenses
- Build and establish credit
- Start planning for retirement by researching different types of retirement accounts and any associated risks.
- Protect your assets through insurance
- Protect yourself from fraud
Contact us Today!
Erica Willis
Interim Director of Financial Aid
1.800.351.4040 Ext 7527 or 334.387.7527 334.387.3878
Email: financialaid@amridgeuniversity.edu