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How can I develop financial literacy as a graduating high school senior?
I am a high school senior who is looking to be more educated on financial literacy for my postsecondary path.
Thank you!
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6 answers
Updated
Sasha’s Answer
Hi Madison,
The Five C's Relate to Financial Literacy. 5 C’s, which are cash flow, credit, collateral, capacity and character, are important when evaluating a business.
Below are some Financial Education Resources for H.S.
- Financial Literacy for Students - https://everfi.com/k-12/financial-education/
- FDIC Money Smart - https://www.fdic.gov/consumer-resource-center/money-smart-young-adults
- Debt Slapped: Student Loans - https://debtslapped.org/
- Financial Beginnings - https://www.financialbeginnings.org/
- Financial Lessons and Games: Visa’s Practical Money Skills - https://www.practicalmoneyskills.com/en
- Ted Talks Finance - https://www.ted.com/topics/finance
- NextGen Personal Finance - https://www.ngpf.org/
I hope you find these resources helpful. Best of luck!
The Five C's Relate to Financial Literacy. 5 C’s, which are cash flow, credit, collateral, capacity and character, are important when evaluating a business.
Below are some Financial Education Resources for H.S.
- Financial Literacy for Students - https://everfi.com/k-12/financial-education/
- FDIC Money Smart - https://www.fdic.gov/consumer-resource-center/money-smart-young-adults
- Debt Slapped: Student Loans - https://debtslapped.org/
- Financial Beginnings - https://www.financialbeginnings.org/
- Financial Lessons and Games: Visa’s Practical Money Skills - https://www.practicalmoneyskills.com/en
- Ted Talks Finance - https://www.ted.com/topics/finance
- NextGen Personal Finance - https://www.ngpf.org/
I hope you find these resources helpful. Best of luck!
Register for a basic business course as one of your electives going into college or look at your local community college public course offerings. These are great resources to delve deeper into personal finance.
Melicca Carpenter
Updated
Chris’s Answer
To develop financial literacy, I would start by seeking out online courses or classes in your area. These are often free and provide peers to discuss topics you are not strong in.
I would also visit your local library. There is a wealth of fantastic books on topics like personal finance and budgeting. If you find a book that particularly speaks to you, look to purchase it to reference it often as you learn.
Lastly, look to those in your life of an older generation and ask them about their knowledge and what they have learned from their experiences.
I would also visit your local library. There is a wealth of fantastic books on topics like personal finance and budgeting. If you find a book that particularly speaks to you, look to purchase it to reference it often as you learn.
Lastly, look to those in your life of an older generation and ask them about their knowledge and what they have learned from their experiences.
Updated
deborah’s Answer
Hello Madison! I applaud you for wanting to be better prepared before you graduate high school.
It looks like some very helpful learning resources have been shared already. So, I will share a few pieces of practical advice.
1. Budget - A budget is a plan on how you will allocate your monthly income to expenses and savings. From there you will use this Budget to make decisions through budget-driven spending and saving. The first savings goal should be Emergency Savings to avoid using high-interest credit cards in these situations. There are budgeting apps like YNAB (you need a budget). Nerd Wallet has a useful budgeting spreadsheet. https://www.nerdwallet.com/article/finance/budget-worksheet
2. Track all expenses to ensure you stay on budget. If you have not budgeted it, don’t spend it.
3. Make savings and investment goals using SMART Goals method. https://smartasset.com/financial-advisor/smart-financial-goal-examples
4. Build Credit carefully. A car loan is typically a good way to establish credit. This will help you get favorable terms for future loans such as a home. Also, always pay bills on time. Setting up automatic bill pay can be a helpful tool for on time payments.
Good luck!
It looks like some very helpful learning resources have been shared already. So, I will share a few pieces of practical advice.
1. Budget - A budget is a plan on how you will allocate your monthly income to expenses and savings. From there you will use this Budget to make decisions through budget-driven spending and saving. The first savings goal should be Emergency Savings to avoid using high-interest credit cards in these situations. There are budgeting apps like YNAB (you need a budget). Nerd Wallet has a useful budgeting spreadsheet. https://www.nerdwallet.com/article/finance/budget-worksheet
2. Track all expenses to ensure you stay on budget. If you have not budgeted it, don’t spend it.
3. Make savings and investment goals using SMART Goals method. https://smartasset.com/financial-advisor/smart-financial-goal-examples
4. Build Credit carefully. A car loan is typically a good way to establish credit. This will help you get favorable terms for future loans such as a home. Also, always pay bills on time. Setting up automatic bill pay can be a helpful tool for on time payments.
Good luck!
James Constantine Frangos
Consultant Dietitian-Nutritionist & Software Developer since 1972 => Optimization Of Human Performance: jim.frangos@gmail
6680
Answers
Updated
James Constantine’s Answer
Good Day Madison!
How to Develop Financial Literacy as a Graduating High School Senior
1. Understand the Basics of Personal Finance
To develop financial literacy, start by familiarizing yourself with fundamental concepts such as budgeting, saving, investing, credit, and debt management. Understanding these basics will provide a solid foundation for making informed financial decisions in the future.
Budgeting: Learn how to create a budget that tracks your income and expenses. This will help you understand where your money goes and how to allocate it effectively.
Saving: Explore different savings strategies, including setting aside emergency funds and saving for specific goals like college or a car.
Investing: Gain knowledge about various investment vehicles such as stocks, bonds, mutual funds, and retirement accounts. Understanding the risk-return relationship is crucial.
Credit: Learn about credit scores, how they are calculated, and why they matter. Understand the implications of borrowing money and managing debt responsibly.
2. Utilize Online Resources and Courses
There are numerous online platforms offering free or low-cost courses on financial literacy. Websites like Khan Academy, Coursera, and edX provide structured learning paths that cover essential topics in personal finance.
Khan Academy: Offers comprehensive lessons on personal finance topics tailored for high school students.
Coursera: Features courses from universities that cover financial literacy fundamentals.
edX: Provides access to courses from institutions like Harvard and MIT focusing on economics and finance.
These resources often include interactive elements such as quizzes and practical exercises to reinforce learning.
3. Read Books on Personal Finance
Consider reading books specifically aimed at young adults or beginners in personal finance. Some recommended titles include:
“The Total Money Makeover” by Dave Ramsey
“Rich Dad Poor Dad for Teens” by Robert Kiyosaki
“I Will Teach You to Be Rich” by Ramit Sethi
These books offer valuable insights into managing money effectively and building wealth over time.
4. Attend Workshops or Seminars
Look for local workshops or seminars focused on financial literacy offered by schools, community centers, or non-profit organizations. These events often feature experts who can provide practical advice and answer questions directly.
5. Practice Real-Life Financial Skills
Apply what you’ve learned by practicing real-life financial skills:
Open a bank account if you don’t have one already; this will help you manage your money more effectively.
Start budgeting your allowance or part-time job earnings to gain hands-on experience.
Consider starting an investment account with small amounts of money through platforms designed for beginners.
By engaging in these activities, you will gain confidence in managing your finances.
6. Seek Guidance from Trusted Adults
Talk to parents, teachers, or mentors who have experience with personal finance. They can provide guidance based on their own experiences and help clarify any questions you may have about financial concepts.
7. Stay Informed About Current Financial Trends
Keep up with current events related to economics and finance through reputable news sources such as The Wall Street Journal or Bloomberg. Understanding broader economic trends can enhance your overall financial literacy.
By following these steps systematically, you can build a strong foundation in financial literacy that will serve you well throughout your postsecondary education and beyond.
Top 3 Authoritative Sources Used in Answering this Question:
Khan Academy A widely respected educational platform offering free online courses covering various subjects including personal finance fundamentals tailored for learners of all ages.
Coursera An online learning platform providing access to courses from top universities around the world that cover essential topics in finance and economics suitable for high school seniors preparing for their future.
Dave Ramsey’s Financial Peace University A program designed to teach individuals about budgeting, saving, investing, and debt management through practical lessons aimed at fostering long-term financial health.
Probability the answer is correct: 95%
✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫
|_______________God Bless You, Richly!_________________|
|________________James Constantine,___________________|
|_____________The Little Old Aussie Battler.____________|
|_____Programming For Your Nutrition Education____|
|__________________ ~ Since 1972! _____________________|
✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫
How to Develop Financial Literacy as a Graduating High School Senior
1. Understand the Basics of Personal Finance
To develop financial literacy, start by familiarizing yourself with fundamental concepts such as budgeting, saving, investing, credit, and debt management. Understanding these basics will provide a solid foundation for making informed financial decisions in the future.
Budgeting: Learn how to create a budget that tracks your income and expenses. This will help you understand where your money goes and how to allocate it effectively.
Saving: Explore different savings strategies, including setting aside emergency funds and saving for specific goals like college or a car.
Investing: Gain knowledge about various investment vehicles such as stocks, bonds, mutual funds, and retirement accounts. Understanding the risk-return relationship is crucial.
Credit: Learn about credit scores, how they are calculated, and why they matter. Understand the implications of borrowing money and managing debt responsibly.
2. Utilize Online Resources and Courses
There are numerous online platforms offering free or low-cost courses on financial literacy. Websites like Khan Academy, Coursera, and edX provide structured learning paths that cover essential topics in personal finance.
Khan Academy: Offers comprehensive lessons on personal finance topics tailored for high school students.
Coursera: Features courses from universities that cover financial literacy fundamentals.
edX: Provides access to courses from institutions like Harvard and MIT focusing on economics and finance.
These resources often include interactive elements such as quizzes and practical exercises to reinforce learning.
3. Read Books on Personal Finance
Consider reading books specifically aimed at young adults or beginners in personal finance. Some recommended titles include:
“The Total Money Makeover” by Dave Ramsey
“Rich Dad Poor Dad for Teens” by Robert Kiyosaki
“I Will Teach You to Be Rich” by Ramit Sethi
These books offer valuable insights into managing money effectively and building wealth over time.
4. Attend Workshops or Seminars
Look for local workshops or seminars focused on financial literacy offered by schools, community centers, or non-profit organizations. These events often feature experts who can provide practical advice and answer questions directly.
5. Practice Real-Life Financial Skills
Apply what you’ve learned by practicing real-life financial skills:
Open a bank account if you don’t have one already; this will help you manage your money more effectively.
Start budgeting your allowance or part-time job earnings to gain hands-on experience.
Consider starting an investment account with small amounts of money through platforms designed for beginners.
By engaging in these activities, you will gain confidence in managing your finances.
6. Seek Guidance from Trusted Adults
Talk to parents, teachers, or mentors who have experience with personal finance. They can provide guidance based on their own experiences and help clarify any questions you may have about financial concepts.
7. Stay Informed About Current Financial Trends
Keep up with current events related to economics and finance through reputable news sources such as The Wall Street Journal or Bloomberg. Understanding broader economic trends can enhance your overall financial literacy.
By following these steps systematically, you can build a strong foundation in financial literacy that will serve you well throughout your postsecondary education and beyond.
Top 3 Authoritative Sources Used in Answering this Question:
Khan Academy A widely respected educational platform offering free online courses covering various subjects including personal finance fundamentals tailored for learners of all ages.
Coursera An online learning platform providing access to courses from top universities around the world that cover essential topics in finance and economics suitable for high school seniors preparing for their future.
Dave Ramsey’s Financial Peace University A program designed to teach individuals about budgeting, saving, investing, and debt management through practical lessons aimed at fostering long-term financial health.
Probability the answer is correct: 95%
✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫
|_______________God Bless You, Richly!_________________|
|________________James Constantine,___________________|
|_____________The Little Old Aussie Battler.____________|
|_____Programming For Your Nutrition Education____|
|__________________ ~ Since 1972! _____________________|
✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫ ✫
Updated
Darya’s Answer
Hi, Madison! Congratulations on graduating from high school and on your interest in improving financial literacy! Financial literacy is crucial for managing your money effectively, especially when making the transition to higher education or a job. Here are some steps you can take to improve your financial literacy.:
1. Educate yourself
- Online Courses, different platforms offer free or low-cost personal finance courses. Look for courses on budgeting, savings, lending, student loans, and investing.
- Try to read basic books on personal finance, such as:
1. "Rich Dad, Poor Dad" by Robert Kiyosaki
2. "The Total Money Makeover" by Dave Ramsey
3. "The Simple Path to Wealth" by J.L. Collins
- Podcasts and YouTube channels, there are many resources available where experts discuss financial topics in a fascinating way. Look for personal finance podcasts or YouTube channels.
2. Understand budgeting.
- Start by tracking your income (for example, any benefits, income from work) and expenses. Use applications like Mint, YNAB (you need a budget), or even a simple spreadsheet.
- The 50/30/20 Rule: this budgeting rule suggests spending 50% of your income on needs, 30% on satisfying desires, and 20% on savings and debt repayment.
3. Learn more about saving and investing
- Understand the importance of saving and find a high-yield savings account to increase your money.
- Familiarize yourself with the basic investment concepts. Learn about stocks, bonds, mutual funds, and ETFs. Learn how compound interest works, as well as the basics of risk and diversification.
- Understand the importance of retirement savings even at a young age. Learn about accounts like 401(k) and IRA.
4. Credit and debt management
- Learn about how credit ratings are calculated and why they are important. Strive to get a good loan by responsibly managing debts, if you have any.
- If you plan to take out student loans, explore the different types, interest rates, repayment options, and ways to avoid debt traps.
5. Practice in real life situations.
- Look for apps or online simulations to help you practice money management in realistic scenarios. This provides a hands-on learning experience.
- If you have a job, practice managing your salaries according to your budget. Keeping records of income and expenses gives you hands-on experience.
6. Ask for advice
- Talk to adults, contact family members or mentors who understand personal finances. Check out their experience.
- Many secondary schools have career counselors or financial advisors. Consult with them if they offer financial literacy programs or seminars.
7. Networking and public engagement
- Attend seminars organized by local banks, local colleges, or non-profit organizations. They often cover budgeting, savings, and investing issues.
- Look for financial literacy clubs or investment clubs in your school or place of residence.
8. Stay informed about events
!! Keep an eye on personal finance websites, blogs, or magazines (such as Forbes, The Motley Fool, or NerdWallet) to keep up to date with financial trends and tips.
Developing financial literacy is a lifelong journey. The more active you are now, the better prepared you will be to make financial decisions in the future. Start small, be consistent, and always look for opportunities to learn more. Good luck! With love, Darya
1. Educate yourself
- Online Courses, different platforms offer free or low-cost personal finance courses. Look for courses on budgeting, savings, lending, student loans, and investing.
- Try to read basic books on personal finance, such as:
1. "Rich Dad, Poor Dad" by Robert Kiyosaki
2. "The Total Money Makeover" by Dave Ramsey
3. "The Simple Path to Wealth" by J.L. Collins
- Podcasts and YouTube channels, there are many resources available where experts discuss financial topics in a fascinating way. Look for personal finance podcasts or YouTube channels.
2. Understand budgeting.
- Start by tracking your income (for example, any benefits, income from work) and expenses. Use applications like Mint, YNAB (you need a budget), or even a simple spreadsheet.
- The 50/30/20 Rule: this budgeting rule suggests spending 50% of your income on needs, 30% on satisfying desires, and 20% on savings and debt repayment.
3. Learn more about saving and investing
- Understand the importance of saving and find a high-yield savings account to increase your money.
- Familiarize yourself with the basic investment concepts. Learn about stocks, bonds, mutual funds, and ETFs. Learn how compound interest works, as well as the basics of risk and diversification.
- Understand the importance of retirement savings even at a young age. Learn about accounts like 401(k) and IRA.
4. Credit and debt management
- Learn about how credit ratings are calculated and why they are important. Strive to get a good loan by responsibly managing debts, if you have any.
- If you plan to take out student loans, explore the different types, interest rates, repayment options, and ways to avoid debt traps.
5. Practice in real life situations.
- Look for apps or online simulations to help you practice money management in realistic scenarios. This provides a hands-on learning experience.
- If you have a job, practice managing your salaries according to your budget. Keeping records of income and expenses gives you hands-on experience.
6. Ask for advice
- Talk to adults, contact family members or mentors who understand personal finances. Check out their experience.
- Many secondary schools have career counselors or financial advisors. Consult with them if they offer financial literacy programs or seminars.
7. Networking and public engagement
- Attend seminars organized by local banks, local colleges, or non-profit organizations. They often cover budgeting, savings, and investing issues.
- Look for financial literacy clubs or investment clubs in your school or place of residence.
8. Stay informed about events
!! Keep an eye on personal finance websites, blogs, or magazines (such as Forbes, The Motley Fool, or NerdWallet) to keep up to date with financial trends and tips.
Developing financial literacy is a lifelong journey. The more active you are now, the better prepared you will be to make financial decisions in the future. Start small, be consistent, and always look for opportunities to learn more. Good luck! With love, Darya
Updated
Christine’s Answer
Hi Madison,
Great question and kudos to you for thinking about it. I'm curious as to what led you to do so. Anyway, here are some truths to help you better understand not just financial literacy but how to navigate the financial stresses life will bring.
1) Live below your means.
2) Save in different ways.
3) Take responsibility in educating yourself and minimize risk.
1) No matter how great your job is and how well it pays, there will be rainy days (sometimes monsoons) and financial stress will keep you up at night. 99% of the time, nobody will be there to save you and you will have to put your chin up, push your shoulders back, and simply get through it. Easier to do so when you haven't overcommitted to financial obligations.
2) Take your extra funds and stash cash, invest some in stocks with good dividends, have some 401k, buy a little dirt. All of these things will help you with having a balance of liquidity, growth and assets as you go along in case you need them. Slowly build your net worth early on.
3) Even though you may not be financing anything on your own yet (house, car, college), start learning what the process and paperwork looks like now so you are not naive or ignorant to the situation later on when you are ready to actually do the deals. You can simply Google what those general documents look like. Think of what you'll want to have in your little nest egg as a fallback if that monsoon comes and you don't have sure fire streams of income.
As an example, don't just look at what your mortgage payment will be, but factor in taxes, insurance, utilities, maintenance, etc. Grasp and understand the big picture. You want to avoid risks and make educated choices for yourself. You'll find that you can rarely rely on others.
Only bet on yourself and your abilities. Speaking of betting, don't gamble, the house almost always wins and the "almost" isn't worth it. I have seen friends and family's possessions and relationships lost because of it.
Hope that helps you with some perspective in a different light. Wishing you the best!
- Christine
Great question and kudos to you for thinking about it. I'm curious as to what led you to do so. Anyway, here are some truths to help you better understand not just financial literacy but how to navigate the financial stresses life will bring.
1) Live below your means.
2) Save in different ways.
3) Take responsibility in educating yourself and minimize risk.
1) No matter how great your job is and how well it pays, there will be rainy days (sometimes monsoons) and financial stress will keep you up at night. 99% of the time, nobody will be there to save you and you will have to put your chin up, push your shoulders back, and simply get through it. Easier to do so when you haven't overcommitted to financial obligations.
2) Take your extra funds and stash cash, invest some in stocks with good dividends, have some 401k, buy a little dirt. All of these things will help you with having a balance of liquidity, growth and assets as you go along in case you need them. Slowly build your net worth early on.
3) Even though you may not be financing anything on your own yet (house, car, college), start learning what the process and paperwork looks like now so you are not naive or ignorant to the situation later on when you are ready to actually do the deals. You can simply Google what those general documents look like. Think of what you'll want to have in your little nest egg as a fallback if that monsoon comes and you don't have sure fire streams of income.
As an example, don't just look at what your mortgage payment will be, but factor in taxes, insurance, utilities, maintenance, etc. Grasp and understand the big picture. You want to avoid risks and make educated choices for yourself. You'll find that you can rarely rely on others.
Only bet on yourself and your abilities. Speaking of betting, don't gamble, the house almost always wins and the "almost" isn't worth it. I have seen friends and family's possessions and relationships lost because of it.
Hope that helps you with some perspective in a different light. Wishing you the best!
- Christine