Financial literacy is a missing component in our school systems. As a result, Americans have not prepared for basic expenses. The widespread lack of a financial education is concerning. According to Forbes, 33% of American adults have nothing saved for retirement and 44% of Americans don’t have enough cash to cover a $400 emergency. National Financial Literacy Month is recognized every April in the United States to help bring awareness and highlight the importance of financial literacy, to teach Americans how to establish good financial skills, and to encourage everyone to work on their financial wellbeing. Financial literacy is the foundation of your relationship with money, and it is a life-long journey of learning. The earlier you start, the better off you will be, because education is the key to. Jan 31, 2021 What makes Banktivity stand out is that its financial software designed specifically for Mac. The company claims customers can save $500 per year and about 40 hours of time by using the app. How to find a thesis in an article. Arts science educator recruitment in punjab facebook. Consumer report on keto boost. Top 100 universities for economics in the world. Ball so hard university shirt. Chemical engineering thesis example. Imo state university post utme past questions.

1. Financial Literacy Mac Os 11
2. Financial Literacy Mac Os Download
3. Financial Literacy Mac Os Catalina

What is financial literacy?

Financial literacy is defined as the possession of knowledge and skills that enable informed and effective money management.

That’s a broad definition, but the term can mean different things to different people.

To understand the nuances of what financial literacy is and how people understand it, we spoke to personal finance experts across a range of industries. They represent a wealth of different backgrounds and spaces in which financial literacy is taught and learned. We asked all of them a simple question with a not-so-simple answer: “What is financial literacy?”

Here’s what they had to say.

Expert perspectives: What’s the definition of financial literacy?

Components of financial literacy

Financial literacy breaks down into two parts: knowledge and skills.

For knowledge, financial literacy is defined by an understanding of the core concepts of personal finance—interest rates, credit scores, and the purpose of an emergency fund, for instance. When put into practice, this knowledge provides the foundation needed to make informed decisions that contribute to long-term financial health.

For skills, knowledge needs to be complemented by the ability to perform tasks that support robust personal finance. For instance, someone who is financially literate will know how to use online banking apps, request a credit report, and do something as simple as write a check.

The particular knowledge and skills that define financial literacy can be divided into six categories:

1. Spending and saving
2. Credit and debt
3. Employment
4. Investing
5. Risk management
6. Decision-making

These categories are reflected in the national financial literacy standards issued by Jump$tart Coalition and the Council for Economic Education.

Financial literacy: Knowledge

Spending and saving

• Understand different payment methods. There are important differences between credit cards and debit cards and other forms of payment. Credit cards are essentially a form of borrowing, but debit cards draw directly from your bank account. Checks also draw directly from your bank account, so make sure there’s enough to cover the expense.
• Understand how banking works. Banks provide a secure way to store money. Funds can be deposited or withdrawn in person, at ATMs, or by using the bank’s website or apps. Banks also offer useful services. A checking account is designed for everyday transactions. A savings account is better for accruing interest.
• Saving provides money for future purchases. Saving means choosing to set aside money now for future needs, goals, and emergencies. This might include short- or long-term financial goals, recreational activities and purchases, or an emergency fund. An emergency fund is money that is saved for unexpected costs such as job loss, medical bills, or car repair.
• Needs vs. wants. Expenses can be divided into two categories: needs and wants. “Needs” are essentials—food, housing, etc. “Wants” are luxuries—things that would be nice to have but can be done without. Some items can be both needs and wants. For instance, food is certainly a need. However, an expensive meal at a restaurant is a want.

Credit and debt

• What’s credit? Credit is a financial tool that allows you to buy something now and pay for it later. Forms of credit include credit cards, personal loans, and mortgages. Using credit comes at a cost—interest is charged.
• The difference between credit reports and credit scores. A credit report is a detailed account of a borrower’s credit history. It’s collected and maintained by the credit bureaus. Payment history and other factors contained in the report are used to generate a credit score (between 300 to 850) that reflects a borrower’s creditworthiness. The higher the score, the more confident a lender can be that a loan to the person will be repaid.
• Financial missteps can hurt your credit score. Missed payments and loan defaults are reported to the credit bureaus and added to your credit report. They can stay on your report for up to seven years and negatively impact your credit score. Since lenders look at your score when considering whether to grant a loan or offer a credit card, any negative marks will impact your ability to receive credit, a loan, and even rent an apartment. A lower score will also increase the cost of using credit.
• Credit has different costs. Credit isn’t free. You pay in the form of interest to borrow someone’s money. This is often expressed as an annual percentage rate, or APR. An APR is the annual amount owed in interest for borrowing money. The higher the APR, the more expensive the credit. Various types of fees—such as fees assessed for late or missed payments—also affect the cost of credit.
• A lower credit score affects creditworthiness and your cost of borrowing. Creditworthiness is the determination made by lenders of the possibility that a borrower will default on debt obligations. It considers factors like repayment history and credit score. Consumers with a history of missed payments—and thus a lower credit score—are considered to be high-risk borrowers. As a result, these borrowers pay higher interest and fees in order to receive credit.

Employment

• Choices about education and skills can affect income. Earning potential and job satisfaction can be affected by a worker’s education, skills, and supply and demand for their labor. Typically, workers with higher levels of education, training, and experience earn higher incomes.
• Income is taxed. There are two types of income: earned and unearned. Earned income would include salary or commissions. Interest, dividends, and capital gains are examples of unearned income. There are many ways that income is earned, and each may be taxed at a different rate.
• Understand worker benefits. In addition to pay, many workers receive benefits from their employer. These benefits might include health insurance or employer-sponsored retirement plans.

Investing

• Understand investing. Investing means using money to earn more money. Many people invest in order to achieve future financial goals by building wealth. There are risks to some types of investing, however, such as selling stock investments for a loss.
• Time value of money. The time value of money is an important concept for investors. It refers to the potential for money to grow in value over time. Because of interest earned, money that’s invested today has greater value than the same amount of money if it were to be acquired and invested at a later date. Thus, the sooner money is received, the greater benefit it offers.
• Consequences of delaying investment. Because of the time value of money, delaying investment wastes the potential of money to earn interest and grow. Think of a retirement fund. Younger workers have the greatest potential for higher return on investments simply because they have a longer amount of time for their earnings to accrue interest before retirement.
• Economic conditions affect the stock market and investments. There are many factors that affect the stock market. A low inflation rate may result in a surge of selling in the stock market, whereas deflation is caused by a decrease in spending and revenue. Rising interest rates mean higher borrowing costs causing consumer spending and business investments to slow and reduce economic growth. Conversely, falling interest rates can stimulate economic growth. Even economic trends in foreign markets may impact the U.S. stock market.

Risk management

• The purpose of insurance. Insurance can protect you from significant financial costs related to things like medical emergencies or property damage. It allows you to pay a small cost now to avoid a large cost in the future that may be unaffordable. People manage the risk of monetary or physical loss through avoidance, acceptance, and reduction. Several types of insurance—such as insurance for homes, cars, or medical bills—allow people to minimize risk.

Decision-making

• Financial responsibility requires active decision-making. Financial health requires active decision-making and planning. It requires the application of sound financial information to individual circumstances. Life events—like illness, job loss, or divorce—may change a person’s financial circumstances and require appropriate adjustments.
• Know where to get financial advice. We all have questions. Part of financial literacy is knowing the right places to go for answers. Libraries, reputable online sources, and financial advisers are all sources of sound financial information.

Financial literacy: Skills

Spending and saving

• Create a budget. Create a budget to balance your income and expenses. Use it to plan how to allocate income to meet financial obligations and work toward future goals. If your financial circumstances change, your budget, and how much you spend or save, will change too.
• Schedule and manage bill payments. Know how and when to schedule bill payments. Will you pay online, via automatic payments, through an app, or by sending a check in the mail? The important thing isn’t which you choose but rather that you have a method that ensures your payments are consistently on time. Keep track of when bill payments are due each month and opt to receive payment reminders either by email, phone, or mail.
• Comparison shop. Know how to research the best price for a product before making a purchase. This allows you to avoid overspending. When researching, find comparable alternatives. For example, when at the grocery store, compare the price per ounce (the total dollar amount divided by the number of ounces) of similar food products to get the most value for your money.
• Build savings through the “pay yourself first” method. The “pay yourself first” method, also known as reverse budgeting, is building a spending plan around your savings goals. First, list your short- or long-term savings goals. Then, decide how much to contribute each month. Finally, put that money toward your savings account before allocating the rest of your budget to expenses.

Credit and debt

• Request your credit report. All consumers are entitled to receive a free credit report once a year from each of the major credit bureaus—Equifax, TransUnion, and Experian. Review your credit report to catch problems early. To dispute an error, tell the credit bureau what information is inaccurate. After an investigation, corrections or deletions will appear in 30 to 90 days.
• Monitor your credit score. Yearly credit reports aren’t the only way to check your credit score. You can also access and monitor changes to your score at any time with a free online credit check company. These sites don’t provide your official FICO, but they do provide a close estimation. Be conscious of financial decisions that raise or lower your score, such as utilization rate, timeliness of payments, credit length, and inquiries.
• Determine the most cost-effective method of making a purchase with credit. When using credit, assess whether the purchase justifies the pitfalls. For example, ask if you will you be able to pay it off in the grace period or if you will have a balance carried into the next month. How about taking out a loan? Compare the costs of credit. This might include interest rates, compounding frequency, fees, and loan length. Calculate the total cost of repaying credit under various interest rates and over different lengths of time.
• Develop a plan to manage excessive debt. If your debt becomes excessive and you’re missing payments, it’s important to develop a plan to effectively manage it so you can work to reduce it. Consider contacting lenders directly to regain control, renegotiate a payment plan, consolidate loans, or enter a debt-counseling program. Another option is to pay a third-party credit repair company to handle the matter. Use a budget to reduce spending and focus on repaying debt.

Employment

• Use a career plan to determine income potential. Explore jobs related to a career that both interests you and draws on your strengths. Then, determine your potential earnings based on your desired job, educational attainment, and skills. Develop a strategy to minimize the costs of post-secondary education or job training by researching scholarships, federal subsidies, and part-time work. Finally, outline a career plan that takes all of these factors into consideration.
• File taxes from employment. Do you know how to file your taxes? While most people who earn an income are required by law to file a return with the IRS, not everyone is. First, figure out your filing status. Then, gather all of your documentation, including a W-2 from employers or a 1099 for contract work. Hire an accountant to sort out your taxes or file yourself with an e-filing company.
• Calculate the future income needed to maintain your lifestyle in retirement. How much money will you need in retirement to maintain your current or expected standard of living? Identify sources of income in retirement, such as a retirement-savings account like a 401(k) or IRA, pensions, annuities, investments, home equity, or part-time work. Make a savings goal based on your desired income and the length of time until you retire. Take advantage of compound interest since this is the most assured method of building wealth for the future.

Investing

• Implement a diversified investment strategy. Consider starting a diversified investment portfolio. Typically, diversified portfolios have stocks, fixed income, and commodities. Keep a watchful eye on the market to know when to divest.
• Identify warning signs of investment fraud. Investment fraud is the illegal sale of deceptive financial information. The government and independent agencies combat fraud and oversee the financial services industry. Be skeptical of unsolicited communications from strangers. Don’t trust anyone who promises a high return in a short period of time or no- or low-risk investments. Beware of a broker giving “inside” information.

Risk management

• Compare costs to purchase insurance. Categorize and then determine the types of insurance you may need—renter’s insurance, auto insurance, homeowner’s insurance, and liability insurance, among others. List the factors that determine insurance premiums. Determine if there are any legal minimums in your state. Calculate your payment after accounting for exclusions and deductibles. Then, learn how to file an insurance claim, if needed.

Decision-making

• Identify sources of sound financial information. Search for sources of information that are objective, accurate, and up-to-date. Financial advice is available from libraries, online, professional financial advisors, and friends and family members, but make sure to vet your sources. Understand the most important factors to consider before hiring a professional financial advisor, attorney, tax advisor, or financial planner.
• Prepare a contingency plan. Use sound financial decision-making to prepare a contingency plan for an unexpected change in financial circumstances. A comprehensive financial plan includes financial goals, a budget, cash-flow management plan, investment plan, insurance plan, net worth statement, a will, and estate plan. Discuss financial plans or contractual obligations with any dependents or beneficiaries you may have.

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Honors Theses

Date of Award

Spring 5-8-2020

Document Type

Undergraduate Thesis

Department

Accountancy

First Advisor

Jeremy Griffin

Second Advisor

Kendall Bowlin

Financial Literacy Mac Os Catalina

Third Advisor

Albert Nylander

Relational Format

Dissertation/Thesis

Abstract

This paper explores the backbones of economic growth and how the backbones influence economic development in three cities in Mississippi. It further seeks to promote education in financial literacy throughout the state to create a base for individuals to further their financial education, create small businesses, or to simply be a knowledgeable citizen. The research sifts through backbones such as population health and small & big business influence, to explore how financial literacy influences daily life and the catalyst for businesses to start and grow. The Mississippi cities Fulton, Clarksdale, and Oxford are studied more in-depth through photos of the cities, tables and graphs, and discussions with professionals pertaining to economic development. These resources provide support for the idea of how important financial literacy is to the survival of small businesses and the city itself. Overall, the research suggests that an investment in increasing financial literacy can help individuals be more successful and increase the economic development in cities.

Recommended Citation

Cleveland, Kellie Reed, 'A Tale of Two Cities, Maybe Three A look at financial literacy and economic development in three Mississippi cities: Fulton, Clarksdale, and Oxford' (2020). Honors Theses. 1308.
https://egrove.olemiss.edu/hon_thesis/1308

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