People today face a staggering number of elaborate financial decisions, but most of them are not yet ready to make well-informed choices about money as they proceed into adulthood. While Couture Cares goal is to help develop traditional academic knowledge is useful for everyone future, teaching about financial literacy can be the difference between a life well lived and a constant struggle to meet the crushing demands of money. By teaching financial literacy lessons early in a cognitive development, Couture Cares instructors can motivate or inspire them to save money and empower them to be caretakers of their own financial futures.
Below are the five concepts to consider when Couture Cares teaches financial literacy:
1. Debt. It’s far easier to gain debt than to eliminate it, but many young people often don’t fully understand how easy it is to accrue debt. Moreover, make everyone aware that the most common personal debt sources are credit card debt and student loans. It’s likely that they will end up with both, so the sooner they know what to look out for, the sooner they can try to minimize these common sources of personal debt.
2. Budgeting. One of the essential aspects of staying in control of your finances is by building and sustaining a budget. Nowadays, it is much easier than ever to make a budget through the aid of apps and websites. Many of these user-friendly tools have important data and calculations embedded within them, as well as useful visualizations of how money is being saved and spent. With such tools, anyone can keep their finances on track if they’re living within their means. When used correctly, they will keep you up to date about where your money is going. No matter how great the software is however, it won’t help if you don’t actually follow the budget.
3. Investments and savings. Clearly, saving money is an important aspect of financial literacy. However, most young adults do not prioritize investments and savings. It can be easy to neglect things like retirement because it lacks the immediacy of everyday life, but learning to save money early can really only help you later on.
4 .Interest rates. Although most have likely heard about interest rates in math class, it is critical to learn various aspects such as ratios, percentages, and compound interest as they pertain to money. These financial literacy concepts can help in very practical ways, such as learning about the difference between borrowing money and repaying with interest and fees. Understanding interest rates can influence finances more than most realize.
5. Credit. The concept of credit is deeply embedded in Western culture. For many, it’s just accepted that one will spend a lifetime borrowing other people’s money and that, rather than making it yourself, it’s better to constantly groom your own financial identity so that your believability and ‘creditworthiness’ are improved. This is a hurtful belief that can cause students to spend a lifetime struggling with ‘money’ when in reality, the issue is how they think about money. Further, with the explosion of credit and lending, identity theft is more widespread and common than ever. Because almost everything is digital and most people shops online, student financial info is at great risk and keeping accounts safe is a daily practice through preemptive measures, such as limiting the amount of info shared online, encryption, and password protection.
Other important financial literacy information Couture Cares cover is, including economy (e.g., how it works, federal rates, trends and markets, etc.), different financial account types, wages and income types, and cryptocurrencies.
Couture Cares financial literacy program is essential, as it prepares youth and adults with the right skills, habits, and knowledge they need to stay on top of their finances effectively. Without it, their financial decisions can lack a robust foundation for success. There’s a lot that goes into financial literacy, so much so that it there are entire industries, academic fields, and institutions tied to economic and financial support. However, these five concepts above can be useful as a head-start in developing life skills. Couture Cares financial literacy program is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. We think this is one of the most important skills everyone should be taught!