Are You Financially Literate?

Financial Literacy (fi-nans'-shal  lit' a-ra-see) n. 1. your knowledge of the facts, concepts, principles and technological tools fundamental to being smart about money.

GENERAL

How Not to Suck at Money
A game co-sponsored by the NCAA.  We recommend playing as a guest.

LIfe Kit
Podcast sponsored by NPR on Spotify.

BREAK IT DOWN

EARN

Figuring average career income - http://jobs.glassceiling.com/jobs/seeker/salary

BUDGET

Plan for regular expenses that occur every year:Great websites for budgeting:

• NerdWallet: Budgeting 101
• NerdWallet: The Envelope System
• Monet's Money: Cash Envelope System for Beginners

SPEND

Be sure you are getting a good value by shopping around and comparing prices and products.

• NerdWallet: Needs Vs. Wants
• WikiHow: How to Bargain Shop

BORROW

Understand common fees, interest, and types of borrowing.

• Credit Cards – this is called revolving credit. You are given a limit and you must stay below that limit or pay penalties.
• Loans – Money you have to pay back.
• Origination fees - a fee charged by the lendor to cover the cost of processing the loan.
• Interest - money paid on a regular basis for the use of money lent.

Website to Track Your Student Loan Borrowing:  StudentAid.gov
Department of Education website that tracks your total debt through repayment - go here to find out which loan servicer will be managing your loan repayment.

SAVE AND INVEST

How to save for large purchases like college. It is never too early to begin.

Coverdell Education Savings Account
This program allows you to save money for future educational expenses.  A Coverdell Account can be established for anyone under 18 years of age.  Contributions are not tax deductible, but the funds grow untaxed.

529 Plans
These state-sponsored investment programs permit taxpayers to make contributions on behalf of a beneficiary.  The account earnings are untaxed until withdrawn for the beneficiary's qualified college education expenses.  Listed below are links to more information about the 529 plans for just a few of our neighboring states. 

For a comprehensive list of plans as well as more information about Saving for College, check out Savingforcollege.com -- a website founded in the spring of 2000 by a curious, mild-mannered public accountant with a mission of helping families figure out ways of paying for college.

Kansas: Learning Quest.
Oklahoma: OK4Saving.
Texas: Savingforcollege.com

PROTECT

Check your credit score.

• FREE Annual Credit Report (The only source for your free credit reports.  Authorized by law)
• FREE Credit Score (Credit Sesame believes that access to your credit information is a personal right.)

Find ways to avoid late payments.

OTHER FINANCIAL LITERACY RESOURCES:

US Dept of the treasury page:

Financial Literacy and Education Commission | U.S. Department of the Treasury

Money management checklist for college students:

https://studentaid.gov/sites/default/files/money-management-checklist.pdf

Great Ways to Save on Education

The United States government has taken steps to make paying for school easier.  IRS Publication 970 is your best resource for education tax benefits.  Be sure to consult your tax advisor to determine whether you may take advantage of any of these incentives.

American Opportunity Credit
Claim up to a $2,500 credit on college and other post-secondary expenses, even if you don't owe any taxes. 

Lifetime Learning Tax Credit
Qualifying taxpayers can claim a maximum credit of up to $2,000 (20% of the first $10,000).  This credit is calculated per family, not per student.  You can claim this credit at any time during a student's education at an eligible school.  The student needs to be enrolled in at least one course.