BUSINESS & FINANCIAL MATTERS

FINANCIAL LITERACY

As children, we do not know the value of a dollar. Even in math class, we are taught how to add, subtract, multiply and divide, but do we really understand the underlying meaning in terms of how this applies to life? It is usually not until we become independent adults, that we begin to even want to know about the value of a dollar. Some may even wish that we were taught about financial literacy at a young age, so that we do not make the financial mistakes that we may have made along lifes' journey. It is best to teach children while they are young about the value of a dollar, so that they do not make the same financial mistakes that we may have made and can learn to spend and save wisely. It is not too late to start planning now, if you haven't already. When thinking about spending money, the first step is to think about your Needs versus your Wants. This is an area that some may struggle with, because of the mentality, "I work hard, so I am going to do whatever I want to do with my money that I work for, the bills will have to wait." However, if the bills have to wait, they double in the amount, which can make it difficult to pay, depending upon your income and total bill amount. Think about it, if you don't have $65 dollars to pay the gas bill in August, it could also mean that it will be difficult for you to pay $130 dollars when the bill doubles in September. Correction, with the $35 dollar late fee added, $165. The more you spend on your "wants" versus your "needs," the more of a financial struggle you can find yourself in.

It is best to prepare a budget plan that allows you to plan financially and teach your children now about financial literacy. Consider your take home pay, and your bills/expenses for each month. Determine how much money you have left over after all of your bills are paid, and you have put some money into your savings, whatever is left over could be used as your spending money. Spending over that amount, is what gets us into financial binds that could be difficult to get out of. However, it is possible to get out of a financial bind by sticking to a good budget and payment plan. A nonprofit organization, MappingYourFuture.org, provides insight on financial literacy in their 12-step financial literacy guide, which I linked below, that may be helpful to you in your quest for financial freedom: https://www.mappingyourfuture.org/downloads/financialliteracyguide.pdf

This YouTube video below will also help you get started on your way to understanding the value of a dollar.

By Lynnette Clement