*by guest contributors, Maddy Beckmann & Kimberly Jaeger, United Way of Tucson and Southern Arizona
Money & Me: Financial Literacy
Financial Literacy can be defined as knowledge and understanding about managing money. This knowledge is a tool used to make informed and effective decisions when faced with everyday spending choices like managing debt, paying taxes, getting loans, buying and selling a home, saving for retirement, and balancing a checkbook. Financial literacy is important to our community and can affect our success as a neighborhood, a city, a state, and so on.
Unfortunately, many struggle to navigate the confusing world of financial terms and scams. It is difficult for the average American, and even more difficult for those with little to no experience. Money impacts the lives of all and everyone should have the opportunity to benefit from good money management.
Forbes notes the importance of financial literacy with a few facts:
- 41% of U.S. adults, or more than 92 million people living in America, gave themselves a grade of C, D, or F on their knowledge of personal finance;
- Teens who reported learning about managing savings and checking accounts were more likely to report having opened both types of accounts;
- Those who reported learning about saving money were more likely to save regularly (72% vs. 57%).
The infographic above from Edutopia.com shows the impact that financial education can have on youth. The United Way of Tucson and Southern Arizona works to promote financial literacy to youth and adults through a volunteer-based program aptly called, “The Prosperity Initiative.”
The Prosperity Initiative offers financial education workshops, financial coaching, college/career advice in high schools, community organizations, and other partner sites across the city of Tucson. Workshop topics include Affording College, Budgeting 101, Car Buying, and The True Cost of a Cell Phone. Participants can enhance their learning experience by requesting a financial coach that will work one-on-one with them to set financial goals and be accountable for achieving them. Participants interested in accessing college or pursuing a career can request one-on-one time with an advisor who specializes in financial aid resources, the college application process, and career choices.
The Prosperity Initiative is always looking for volunteers and participants. If you are interested in becoming a volunteer, please contact Janet Averitt, [email protected] or (520) 903-9002. To attend upcoming workshops or request a coaching session, please contact Kimberly Jaeger, [email protected], (520) 903-3998.
