FINANCIAL LITERACY
In Focus
"See more clearly when you are informed"
Financial literacy is crucial for making informed decisions about saving, investing, and managing money. It can empower individuals to achieve personal goals and have long term security. Below you will find key terms, statistics, and other useful tools to understand and talk about Financial Literacy. If you would like to know more, consider coming to an IYC event. Our next one can be found below in the section labeled Our Events. We host them virtually, on a wide range of topics, discussing policy, civics, and current events.
Key Terms You Should Know
Student Loan Debt Forgiveness:
Elimination of some or all debt from college loans. Compounded interest, inadequate financial advisement, rising college costs, flawed student loan system are rationales for forgiveness.
Asset:
An item you own w/ financial value (e.g., stocks, bonds, 401Ks, IRAs, CDs, 529 accounts, jewelry, crypto-currency, art/NFT art, precious metals & stones, & real estate). Some have more volatility in value than others.
Credit Union:
DNot-for-profit financial institutions similar to banks; require membership; often have better terms; different from SuSu (informal loan club).
Financial Abuse and Predatory Lending:
Deceit and/or concealment of information that is illegal or improper in order to deprive of money, property, etc. The elderly, spouses, students, and the disabled are typically at higher risk. Includes financial and/or property exploitation, identity theft, fraud, loan sharks, misappropriation of funds, scams, predatory student or mortgage lending.
Unbanked:
Households w/out a checking or savings account insured by a FDIC or NUA institution; more likely for young, Black, or Latinx people; can have implications for credit history, higher transaction fees, limited financial options, ability to receive government benefits, etc.
Moments In History
1737 - Ben Franklin notes a penny saved is a penny earned.
1989 - FICO credit scores created.
2022 - Inflation Reduction Act, w/ implications for personal finance, is signed into law.
1914 - The Smith-Lever Act provides access to college financial readiness courses.
2000 - The start of April becoming
Financial Literacy Month.
Statistics
According to the National Library of Medicine, 36.7% of all divorces occur because of some financial problems.
According to the U.S. Census Bureau, 66% of people are homeowners.
According to Bankrate's 2024 Annual Emergency Savings Report,
20% Americans have no personal savings .
According to the National Library of Medicine, 41% of insured adults have received a surprise medical bill.
According to a 2023 Fidelity report, 20% of adults said retiring without having enough money set aside is top financial concern.
52% won’t afford retirement essentials.
Values
Safety Net
Stability
Risk Tolerance
Budget
Living Within Your Means
Notable Names
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Barbara
Ehrenreich
Ben Stein
Janet Yellen
Daymond John
Robert Kiyosaki
Symbols
Our Events
Past
Future
Further Resources
Financial Literacy Infographic
Share what you have learned about Financial Literacy. Our Infographic has been designed to be shared easily by printing, emailing, or posting on social media. Click on the image to view or download the PDF File. (Not for commercial use.)
Celebrate & Create Event Video
Our crafting event for kids was lots of fun! Use your own materials to participate in our craft project. This event was co-facilitated by Eric, a student at Stuyvesant High School and currently leads a nonprofit dedicated to improving financial literacy among high school students. Watch the video to learn how to make your own wallet! You can also make an event out of it by hosting your own Celebrate & Create: Financial Literacy crafting party. Feel free to share this video with others! (Not for commercial use.)
Craftivism Event Video
As you make your own scrapbook, you will learn about basic financial terms and investments. This event was co-facilitated by Dylan Stroup, a financial professional with Equitable Advisors LLC New York, NY. You can follow the instructions to make a version of this craft with your own supplies. No experience necessary. You can also make an event out of it yourself by hosting your own Craftivism: Financial Literacy. Feel free to share this video with others! (Not for commercial use)
Take Action
Get into the habit of avoiding impulse purchases.
Be a role model by ‘thinking aloud’ in front of the children in your life.
Commit to one financial goal a month to build personal wealth.
Seek the advise of an expert when you do financial planning (e.g., retirement advisor, financial advisor, estate planner, tax attorneys, debt consolidators, bankruptcy professional).
Share our Financial Literacy Infographic with friends, family, and anyone and everyone you think would appreciate becoming more informed!