Issue
Choosing curricula for financial literacy training.
Action
Following is a list of topics commonly included in money management or financial literacy curricula. Find out from members of your target audience through needs assessments which topics are most useful to them:
- Understanding the Individual Development Account
- Setting up, maintaining and using the Individual Development Account
- Decision-making or problem solving
- Setting priorities
- Accessing resources -- community resources, financial assistance resources, credit counseling resources, financial planning resources, online resources
- Identifying values
- Setting goals
- Identifying barriers or obstacles to achieving goals
- Communicating about financial matters with family or household members
- Calculating income
- Identifying expenses
- Identifying and assessing assets and debts
- Avoiding money drainers (check cashing operations, rent-to-own stores, predatory lending)
- Reducing debts
- Developing strategies to cut expenses (plug spending leaks) and increase income
- Determining ways to save money
- Recognizing the range of saving options
- Calculating interest and understanding compound interest
- Using the IDA to build assets
- Developing a spending plan to achieve goals
- Monitoring plans (tracking progress)
- Keeping records
- Establishing or repairing credit
- Using credit
- Ordering and reading a credit report
- Financial planning for different stages on the family life cycle or for life events -- getting married or living together, separation or divorce, having children, personal or family illness or disability, buying a home, retirement, sending children to college, losing a job, death of a partner or family member
- Using financial institution opening accounts
- Reading statements from financial institutions
- Managing a checking account
- Using electronic banking services
- Getting loans
- Standing up for rights as a consumer
- Calculating net worth
- Recognizing accessible investment options
- Managing risk
- Determining insurance needs
- Reading a paycheck -- what is the difference between gross pay and net pay
- Identifying tax obligations
- Filing for Earned Income Tax Credit (EITC)
- Learning how to avoid tax penalties, underpayment, overpayment
- Understanding economic and financial terminology (understanding the evening news) Applying economic concepts to personal financial management
- Recognizing the interconnectedness of the economy
- Developing skills related to specific asset goals -- business development, homeownership, career enhancing education
Context
Financial Literacy is a process through which an individual, or a family, can gain a basic understanding of banking, savings, and the importance of good credit that allow an individual or family with low- or moderate-income to buy a home or start a small business -- and encourage increased economic stability in a given community.
