Financial Literacy Resources (2024)

FAQs

What are the big 3 financial literacy questions? ›

Financial literacy is the knowledge and ability to manage your money in a way that helps you grow stability and feel confident and resilient. Key aspects of financial literacy are budgeting, saving and managing debt.

Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

Key steps to attaining financial literacy include learning how to create a budget, track spending, pay off debt, and plan for retirement.

By combining the golden rule of “Pay Yourself First” with the 50/30/20 rule, you create a comprehensive approach to managing your finances. The golden rule ensures that savings and investments are prioritized, while the 50/30/20 rule provides a framework for allocating your income across different expense categories.

1. Budget your money. In general, there are four main uses for money: spending, saving, investing and giving away. Finding the right balance among these four categories is essential, and a budget can be a very useful tool to help you accomplish this.

The countries with the highest financial literacy rates are Australia, Canada, Denmark, Finland, Germany, Israel, the Netherlands, Norway, Sweden, and the United Kingdom, where about 65 percent or more of adults are financially literate.

Can financial literacy be taught? ›

Key aspects of financial literacy include knowing how to create a budget, plan for retirement, manage debt, and track personal spending. Financial literacy can be obtained through reading books, listening to podcasts, subscribing to financial content, or talking to a financial professional.

Employers value both hard skills and soft skills when hiring candidates. Students completing a co-op placement may also be asked to complete a qualification test to validate their hard skills such as financial literacy.

When following the 10-10-80 rule, you take your income and divide it into three parts: 10% goes into your savings, and the other 10% is given away, either as charitable donations or to help others. The remaining 80% is yours to live on, and you can spend it on bills, groceries, Netflix subscriptions, etc.

The Bottom Line

Listening to podcasts and reading books about specific areas of finance that interest you help break down more complex financial topics and speed up the learning process. There are also many paid and free courses out there that offer courses in different areas of finance and investing.

It's not about earning a certain amount of money or having a specific figure saved; it's about your knowledge and comfort with the financial system. Financial literacy has five components: earn, spend, save and invest, borrow, and protect.

What are the three basic questions addressed by the study of finance? What long-term investments should the firm undertake? How should the firm raise money to fund these decisions? How can the firm best manage its cash flows as they arise in its day-to-day operations?

How do financial goals vary across a person's lifetime? In what ways does money management impact reaching financial goals? What constitutes sound financial decision making?

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

The passive index fund industry is dominated by BlackRock, Vanguard, and State Street, which we call the “Big Three.” We comprehensively map the ownership of the Big Three in the United States and find that together they constitute the largest shareholder in 88 percent of the S&P 500 firms.