Learn to Manage your Money: Financial Literacy
Financial literacy is the knowledge necessary to make important financial decisions. Becoming financially literate will help you make decisions on budgets, debt, and investing. In other words, to be financially literate is to know how to manage your money (e.g. how to pay your bills, how to borrow and save money responsibly, and how and why to invest and plan for retirement).
The presentations in this section were created by the Center for Financial Literacy.
Financial Literacy 101 - Most Americans learn to be literate at any early age, but a majority of those Americans won’t become literate in one of the biggest areas of their lives. Financial literacy isn’t just about learning terms or calculations, it’s about taking financial control of your life to make sure that you’re as smart as possible with your money. The “Financial Literacy 101” video presentation will help you learn how to take back financial control of your life to ensure that your paycheck stays as just that, your paycheck. Banking Basics - The easiest way to establish a savings plan is to explore options at your local bank. This video highlights some of the most popular products. Listen to Josh, CFA society of Pittsburgh, describe several types of bank account. He explains the differences between several bank accounts: Checking, Savings, Money Market Accounts, and Certificates of Deposit. Finally, he explains how to choose what type of account to open depending on one’s needs. Insurance - Insurance provides protection against the potential of catastrophic losses. This video highlights the role each time of insurance policy offers for an investor. Josh explains the differences in various types of insurance, the probably of needing them, and whether they are required by law. How to Pay for College - A majority of Americans dream of attending college to pursue their passions, but it often ends as a financial nightmare. Within the “Student Loans” video presentation, you’ll learn a variety of tips and tricks to avoid the pitfalls that many Americans encounter during their experiences as students. At the end of the session, students will understand their options for paying for college.
How to Start Investing - When you become a college student, you will be investing in yourself by attending class every day and getting an education. However, it’s just as important that you don’t forget to invest in your future! The “Roth IRAs” video presentation will act as a helpful guide to ensuring that your retirement is stable. Interests & Interest Rates - Understanding the role of interest is critical to wise financial planning. This video highlights the impact of interest and interest rates for investors. Listen to Josh Kirkpatrick, Penn State Behrend Finance Major, explain what interest rates are and talk about how they work. He teaches how to calculate interest rates, explains the difference between fixed and variable interest rates, and describes the factors that impact interest rates. Dividends and Dividend Payments - Many stocks offer investors two possible forms of returns: gains/losses in value and dividend payments. This video highlights dividend payments, which are cash distributions to investors. Listen to Josh Kirkpatrick, Penn State Behrend Finance Major, discuss dividends and dividend payments, talks about why dividends are important to investors, and how dividend investing can impact your earnings. How to Achieve Financial Independence - Riley Kennis, business student at Penn State Behrend, introduces the three goals presented in The Missing Second Semester, a book on financial literacy that was written by Gene Natali. She discusses the importance of developing financial empowerment, achieving financial independence, and saving first.
At the end of this session, students will have a better understanding of what it means to be financially empowered to become financially independent. They will also understand that the main take away is to start saving early. Current and Future Effects of Financial Choices - Ryan Pronko, business student from Penn State Behrend, talks about The Missing Second Semester, a book on financial literacy that was written by Gene Natali. Ryan introduces several important topics discussed in the book, such as the importance of making good financial choices early on, the difference between a want and a need, and how being aware of such difference can affect one's finances in the long term. He also discusses the power of time and patience and explains how to invest money for the future.
At the end of this session, students will understand how the financial choices they make today will impact their future, what the difference between want and need is, and how to invest their money wisely today in order to plan for their future. 