November 2010FINANCIAL LITERACY

nounthe quality or state of being literate, es

p. the ability to read and write.a person's knowledge of a particular su

bject o field: to acquire computer literacy.

http://dictionary.reference.com/browse/literacy

WHAT IS LITERACY?

Financial literacy is the ability to understand finance

 “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.”

President’s Advisory Council on Financial Literacy

WHAT IS FINANCIAL LITERACY?

Your level of financial literacy affects your quality of life. It affects your ability to:

Provide for yourself and your family Invest in your future and the future of your children

Contribute to your community as a good citizen

WHY IS IT IMPORTANT?

Bigger, tougher financial decisionsPeople live longerFinancial changes (Ex. Pension changes)

Additional ways to save and invest  Not just a savings and checking accounts

More complicated optionsMore complex and harder to understand. (ex. debit cards, credit cards)

Lots of new financial products (ex. Loan types)

WHY IS IT HARDER TO MAKE WISE FINANCIAL CHOICES NOW?