Financial Literacy

MoneyTalks is pleased to present resources for financial literacy.  We have listed a number of online programs aimed at Millennials – that’s you!

We also provide some interesting reading, tools, and articles.  If you use any of these resources, post a comment or email us at MoneyTalks@gmail.com to let us know how it worked for you.

What is Financial Literacy?

The RAND Corporation, a nonprofit research institution defines Financial Literacy as “knowledge of basic economic and financial concepts, as well as the ability to use that knowledge and other financial skills to manage financial resources effectively for a lifetime of financial well-being.”

Resources and Well-Being

Financial education provides experiences that promote financial literacy (President’s Advisory Council for Financial Literacy (PACFL), 2009).  Arguably,  persons and institutions with clear goals who engage and share resources in a well functioning economic activity system demonstrate the social impact of a financially literate culture.  That is, the well-being of both persons and institutions  provides the ultimate metric of the value of financial literacy.

Financial Literacy Programs

After the Financial Crisis of 2008, legislation increased regulation of financial industries at two levels. First, government regulatory organizations pursued greater oversight over the practices of the financial services.  Second, new regulations required attention to the financial literacy of consumers and other participants.  Financial education initiatives complied with the second regulatory initiative.  Given the all but nonexistent history of financial education, the curricula appeared to the public without preliminary evaluation about what programs worked.  This situation is generally the norm when programs emerge in the face of great crisis and need.  The upside is that the resources become available.  The downside is the uncertainty about program effectiveness and efficiency.

And so the cart left the barn before the horse knew it had someplace to go.

At present, evaluation of “What works” is a major concern of financial literacy.  The programs listed below were selected because they have some characteristics that are important for effective programs. That is, the programs are sustainable with strong program supports; the programs have clearly identified content and targets; the delivery of the programs is simple; training is available; the content is relevant, and the tasks are effective for mastering the content.

CashCourse: 

/home/

MoneySmart: 

360 Degrees of Financial Freedom

 

We also provide some helpful links to other sites:

Student Loans

The websites listed below cover a number of issues for students who borrow during their college years.  The last website called Mapping Your Future features a calculator for projecting appropriate debt load given your future career salaray projections.

  • http://www.ecmc.org/details/financialLiteracyLender.html:
  • http://projectonstudentdebt.org
  • https://www.aamc.org/services/first/first_factsheets/94382/borrowing_101.html
  • http://studentaid.ed.gov
  • http://www.mappingyourfuture.org/

Credit Scores

The Federal Trade Commission (FTC) website provides information about free credit reports.  In essence, the Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies – Equifax, Experian, and TransUnion – to provide a free copy f your credit report, at your request, every twelve months.  The FTC website is worth a look to stay current with the agencies they recommend and how you get free services.  There are numerous imposter sites that the FTC explains.

http://www.consumer.ftc.gov/articles/0155-free-credit-reports

In addition, a more comprehensive site is located at the website below and covers the statutes related to consumer protection and money issues.

http://www.ftc.gov/os/statutes/fcrajump.shtm

Identity theft is also addressed on the FTC web pages.

Financial Aptitude Tests

The FDIC website offers a Financial Aptitude Test the F.A.T.  IF you go to the website you can answer the 10 true/false questions and get immediate feedback as well as additional information on each topic addressed in the quiz.

http://www.fdic.gov/consumers/consumer/news/cnspr05/test.html

Money Apps

A free mobile Money Health Check app is published by the Australian Security and Investment Commission.  It gives you a personal assessment of your financial health and recommends action to improve.

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/mobile-apps

The links listed below will send you to a variety of articles that describe and recommend money apps:

http://www.dailyfinance.com/2012/04/09/5-money-smart-apps-for-business-travelers/

http://appcrawlr.com/ios-apps/best-apps-money-smart

http://www.moneysmartweek.org.au/media/439401/factsheet.pdf

 

 

 

 

 

 

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