FINANCIAL LITERACY Professional Development Office Indiana State Library
Jan 24, 2015
FINANCIAL LITERACYProfessional Development Office
Indiana State Library
Financial Literacy National Financial Educators Council (NFEC)
It is “possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual's personal, family and global community goals.”
Financial literacy has become a vital issue to our country. America is currently in dire straits because of the bad financial habits of our government and our citizens. We need to return to the values of financial responsibility that were practiced by our forefathers. These values -- thrift, accountability, work ethic -- are what made our country wealthy in the first place and if we don't return to them we will only continue to decline and go deeper in debt.
◦Money management◦Credit◦Loans and debt◦Identity theft
Topics
Who needs this info?
◦It’s never too early or too late to start understanding money!
◦Librarians/library staff need this info!◦Customize your materials to the group. Children/Young Adults Adults/Retirees
◦Know your community needs and find resources/organizations to whom you can refer patrons.
BudgetDetermine monthly billsRentUtilitiesInsurance – auto, medical, vet
Resources available: mint.com, Microsoft Excel, themint.org, Quicken
http://money.cnn.com/magazines/moneymag/money101/lesson2/index.htm
Managing Your Money
List down other expensesFoodFuelEntertainment ClothesCredit cardsLoansUnexpected and upcoming expenses
Create your own saving plan for short term expenses, retirement, and rainy day fund.
Budget
How much do you make? Total all your expenses.
-Spreadsheet-Check register
Simple Rule
Live within your means!
Safe places to keep your money. Checking Savings Loans – home, auto
http://www.allbanks.org/top_banks.html
Banks
Open checking account at the bank Convenient -ATM Treat it like cash Track your expenses
Debit Cards
Protect your debit card◦Keep PIN safe/private◦Report loss immediately◦Unauthorized purchases◦Avoid using it to purchase online
Know the policies of your bank – fees http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards
Remember…
Debit vs. Credit pre-paid Terms & Fees Keep track of your
expenses Good for improving
credit. . .if payments are made on time!
http://www.prepaidcards.org/
Prepaid Cards
Compare prices Favorite stores
◦ Good: Frequent shopper key fobs◦ Avoid: Retail credit cards
Coupons◦ Example: coupons.com
Sale (seasonal)◦ Buy winter clothes during the summer!
Bulk vs. retail
*Ask yourself: Is it a want or a need?
Shop and Save
A credit report contains information on where you work and live, how you pay your bills, and whether you’ve been sued or arrested or have filed for bankruptcy. Credit reporting agencies (CRAs) gather this information and sell it to creditors, employers, insurers, and others.
Credit History
Equifax: 1-800-685-1111 or www.equifax.com
Experian: 1-888-397-3742 or www.experian.com
TransUnion: 1-877-322-8228 or www.transunion.co
http://www.consumer.ftc.gov/articles/0155-free-credit-reports
Credit Reporting Agency
Pay your bills on time. Keep balances low on credit cards and other
“revolving credit.” Apply for and open new credit accounts only
as needed. Pay off debt instead of moving it around.
Owing the same amount, but having fewer open accounts, may lower your score.
Better Credit Score
Compare several credit cards Annual fees Low APR (Annual Percentage Rate)
Fine fine lines!
http://banktruth.org/rates-2012/
Credit Cards
Use it wisely Few times in a month Do not over-spend Pay whole bill every month. Pay on time. Cash advances!
Using Credit
Car loans◦ Lease◦ APR◦ Terms◦ Used car vs. brand new
Associated fees: Registration, Insurance
Loans and Debt
Home loans
RESEARCH, RESEARCH, RESEARCH
•Terms•Fixed Rate vs. Variable Rate•Adjustable Rate Mortgage (ARMs)
U.S. Department of Education’s website, www.studentaid.ed.gov, provides information on preparing for and funding education beyond high school with details on the federal aid programs.
Another source of information on financial assistance is www.finaid.org
529 plans and the plans available in each state, visit www.collegesavings.org
Student Loans
Identity Theft
◦Keep financial records safe◦Purchase a shredder◦Get your mail as soon as possible
Choose email option if possible◦Guard your SSN◦Phishing – spam mail◦Passwords – special characters, numbers,
upper cases◦CAPTCHA
Protect Your Identity
Retirement accountshttp://www.irs.gov/Retirement-Plans/Plan-Sponsor/Types-of-Retirement-Plans-1 Investment options Insurance
◦ Health Savings Accounts◦ Auto
◦ Use a retirement calculator◦ http://www.aarp.org/work/retirement-planning/reti
rement_calculator.html
What else is there?
Credit Reporting Companies◦ Equifax (1-800-525-6285)◦ Experian (1-888-397-3742)◦ Transunion (1-800-680-7289)
Federal Trade Commission (1-877-438-4338) Police Agency Financial Counselor
Resources
Publications.USA.gov◦ http://publications.usa.gov/USAPubs.php?NavCod
e=C National Financial Educators Council
◦ http://www.financialeducatorscouncil.org/ U.S. Department of Treasury
◦ http://www.treasury.gov/resource-center/financial-education/Pages/commission-index.aspx
Resources
Federal Trade Commission◦ http://www.ftc.gov/bcp/consumer.shtm
Mymoney.gov◦ http://www.mymoney.gov/index.html
Consumer Action Handbook Public Library Association Financial Literacy
Handbook◦ http://www.ala.org/pla/tools/financiallit