Financial Literacy

Overview: Budgeting is the foundation of financial literacy. It helps students understand income, expenses, savings, and how to live within their means. Topics should include creating a budget, tracking expenses, and setting financial goals.

• Key Concepts:

• Fixed vs. variable expenses

• Needs vs. wants

• The 50/30/20 rule (Needs/Savings/Wants)

• Budgeting apps (e.g., Mint, YNAB)

• Recommended Websites:

• Consumer.gov – Budgeting Basics

• Practical Money Skills – Budgeting

Overview: Credit is essential for future financial stability. This section should cover how credit works, credit scores, and responsible borrowing.

• Key Concepts:

• What a credit score is and how it’s calculated

• How to build good credit

• Dangers of high-interest debt (credit cards, payday loans)

• Student loans and repayment plans

• Recommended Websites:

• MyFICO – Understanding Credit Scores

• Consumer Financial Protection Bureau – Managing Debt

Overview: Taxes are a lifelong responsibility, and students should understand how they work before they start earning money.

• Key Concepts:

• What taxes are and how they’re used

• How to file a basic tax return

• Types of taxes (income, sales, property, payroll)

• Tax deductions and credits for students

• Recommended Websites:

• IRS – Tax Basics for Students

• SmartAsset – Tax Calculator

Overview: Understanding savings and investments is critical for building long-term wealth. This section should introduce high schoolers to saving accounts, interest, and the basics of investing.

• Key Concepts:

• Compound interest vs. simple interest

• Emergency funds

• Stock market basics

• Retirement accounts (401(k), Roth IRA)

• Recommended Websites:

• Investor.gov – Introduction to Investing

• Vanguard - How to Start Investing

Overview: Financial literacy includes understanding how to earn money, job options, and planning for a future career. This section should provide insights into career paths, salaries, and financial decision-making.

• Key Concepts:

• Different types of income (wages, salaries, passive income)

• College vs. trade school considerations

• How to read a paycheck and understand taxes

• Entrepreneurship basics

• Recommended Websites:

• Bureau of Labor Statistics – Career Exploration

• Federal Student Aid – Understanding College Costs

Overview: Students need to be aware of financial scams, predatory lending, and how to avoid common money mistakes.

• Key Concepts:

• How to spot financial scams (identity theft, phishing)

• Avoiding bad financial habits (overspending, impulse buying)

• Payday loans and high-interest debt risks

• Importance of financial security (protecting passwords, monitoring accounts)

• Recommended Websites:

• Federal Trade Commission – Avoiding Scams

• IdentityTheft.gov – Identity Protection