Financial Literacy: Money Facts You Should Know

They say money makes the world go ‘round, so it’s important to learn the skills early on that can help you handle your money well throughout your life.  Here are some smart tips to help you understand how money works and the best ways to manage it.

Save a portion of every dollar you receive

Learn about compound interest

Protect your personal information

Providing your personal information such as your Social Security number or bank account number to an unknown source could have a negative effect on your finances if it ends up in the wrong hands. Never give your personal information to someone you don’t know, especially through a website.

Understand how credit cards work

Anticipate your paycheck earnings

When you start working in a job that provides a paycheck, you’ll notice that some of your earnings are set aside for taxes (and not given to you!). Taxes go to pay for things like schools, roads, and medical help for the elderly. Though you may receive some of that tax money back when you file your yearly tax return form, paying taxes will be a part of your life forever.

Make a budget

When you earn money, either through an allowance or a job such as babysitting or mowing lawns, it’s helpful to set up a budget, which can keep you on track with saving a portion of your money and affording things you want to buy. Learn more about keeping a budget and see samples here.