Understanding the basic concepts of money management can help you reach your financial goals and avoid money problems. Financial education is a lifelong process. Whether you’re just starting your first job, saving for retirement or anything in between, learning how to improve your financial knowledge will pay off. NEBAT offers several financial education resources for children, teens and adults. Read on to learn about three components of financial literacy and the tools and resources that NEBAT has compiled to help you feel confident along your financial journey!
3 Components of Financial Literacy
Have you ever been shocked about your credit card bill or bank account balance? Tracking your money and budgeting it are great ways to improve your financial knowledge. Knowing your daily expenses, upcoming bills and income can help you avoid financial surprises. Budgeting is a powerful way to control spending and encourages saving for your financial goals.
NEBAT’s Personal Finance tool provides a categorized view of your finances and helps you stay on track. Start tracking your spending and budgeting your money today and soon enough you will have saved enough money to purchase a new home, take your dream vacation, or buy something you’ve been hoping for!
2. Saving & Investing
You don’t need to be a financial expert to know that over time, saved money grows. Investing money can complement saving as it can help build your wealth gradually. Out of the three components of financial literacy discussed, saving and investing can be the toughest for some people. The sooner you gain the financial skills of saving and investing, the better. That is why NEBAT offers financial education resources for children to learn about the value of saving early on and continues sharing age-appropriate resources to help those of all ages improve their financial education. Start the conversation tonight at the dinner table!
3. Decision Making
When exploring how to improve your financial knowledge, you will discover that when it comes to borrowing money, comparing loans, and maintaining a healthy credit score are indispensable. Decision making is one of the three components of financial literacy worth taking the extra time to understand the balance of saving and spending. NEBAT has a variety of financial education resources for different situations that involve borrowing money.
When to Start Your Financial Education
Did you know April is National Financial Literacy Month? A month dedicated to sharing financial education resources is a great time to reflect upon your own finances and take some time to improve your financial knowledge and skills.
Money Smart Week is April 9 – 16. Each day has a different focus from smart spending to understanding social security benefits.
Teach Children to Save Day is April 28 and is a great time to start the conversation on the three components of financial literacy with your children.
No matter what stage of your financial education journey you’re in, be sure to spread the wealth of knowledge to your children, family, and friends to help them become financially savvy!