What is Financial Literacy?
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Do you know what the interest is on your student loan? Do you know your credit score? What about the APR of your credit card? Do you know what an APR is?
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If the answer to any of these questions is no, don't worry; you're not alone. Financial literacy hasn't been emphasized in schools as other types of literacies have, but the US government and educational institutions are beginning to realize that this needs to change.
Financial literacy is defined as "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, 2009).
Money Smart Week is one attempt at prompting financial literacy. Created by the Federal Reserve Bank of Chicago, it's a public awareness campaign designed to help consumers manage their personal finances. Public and academic libraries throughout the country are providing programming on topics such as saving and investing, credit and debt, identify fraud, budgeting, and the like.
Financial Literacy Web Resources
- 360 Degrees of Financial Literacy360 Degrees of Financial literacy is a national volunteer effort of the nation’s Certified Public Accountants to help Americans understand their personal finances and develop money management skills. It focuses on financial education as a lifelong endeavor—from children learning about the value of money to adults reaching a secure retirement.
- Consumerfinance.govThis website contains all sorts of information to better understand financial products and services. It also forwards complaints regarding financial products to the appropriate company.
- Institute for Financial LiteracyThe Institute for Financial Literacy is a 501(c)(3) tax exempt nonprofit organization whose mission is to promote effective financial education and counseling.
- Money Smart WeekMoney Smart Week is a public awareness campaign designed to help consumers better manage their personal finances.
- Mymoney.govUS government website dedicated to financial literacy.
- Federal Trade CommisionThe FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them.