Financial Literacy 101: Managing Your Money & Wealth in 2026

Welcome to the Financial Literacy course! Learn more about us before you start the course!

Before you begin our lectures and taking quizzes... download our Financial Literacy course PDF attached to the RESOURCE section of this lecture so you can work your way through each chapter and click the reference link URLs throughout.

Crypto has become a staple of many investment portfolios, but it is crucial to understand how to invest and store your cryptocurrency safely.

Long ago, before there was money, people used bartering or the exchanging of goods and services. This becomes difficult when things have differing values and availability. So various countries invented money.

Money and banks helped solve problems with bartering. For example, a farmer can now sell corn at harvest, put the money in the bank, and use it to pay bills until next years harvest.

And when you are short on money savings, you can take out a loan to obtain more money.

A financial goal is an outcome you are trying to achieve.

You can have financial goals for earning, spending, saving, and investing (wealth creation).

You can divide your financial goals according to time:

• Short term financial goals

• Medium term financial goals

• Long term financial goals

People who don’t budget are compelled to live paycheck to paycheck. That is a place you do not want to be. That is why budgeting is so important and is a key element of financial literacy.

Budgeting is simply a plan for your earnings, savings, and spending for a given time period.

Budgets are necessary because we only have so much money to spend (or save).

A budget is like a guard rail to keep you "within budget". It helps you live within your means.

A budget keeps you from falling off the path leading to achieving your financial goals.

What is debt? A debt means an obligation to pay.

• When you borrow, you are are bound to pay. You are tied by this obligation. There is no other choice than to pay. Otherwise the consequences are serious, such as bankruptcy.

• Debt is a dream killer. Taking on debt too early in life limits your options and your freedom.

• It creates financial stress. And relieving that stress requires paying off debt.

• As a financial tool, debt is a double edged sword. Learn to handle it with care. That is the safest attitude to adopt when thinking about debt. Not all debt is bad, as you can use debt to leverage your buying power for income producing assets (i.e. buying a Starbucks), but for the purpose of this entry level personal finance course, most debt you will experience is not good.

A college education is the quickest pathway to a rewarding career. This is why people invest time and money in a college education. Let learn more about education and career options for you!

In the US, people have to pay taxes on their income, consumption, and wealth. These taxes are the three economic bases that the government uses to pay for infrastructure and services we all benefit from, including public schools, military, social services, roads, and bridges.

When you begin earning, you become a tax payer. Your obligations as a taxpayer comes with interest and penalties.

Understanding these concepts will help you get better at wealth creation through investing:

• Compounding Interest

• Time value of money

• Inflation

• Tax planning 

• Diversification

Our need for insurance can arise at the most unexpected moments. Insurance probably does not seem that important to you. However, we can never know what the future holds. So it is very important that you are prepared to face unexpected disasters.

Marketing is powerful and it is everywhere! Think of the last 10 things you bought, whether products or services. Were your decisions influenced by advertising? The answer most certainly is yes! As we saw in Chapter 4, all debt (think of credit card commercials) is marketed to you. Wherever you go, whatever you do… watching TV, listening to the radio, surfing the web, checking your phone, driving past billboards… you are unwittingly in the middle of an advertising battle for the consumer dollar!

Giving is one of the most rewarding things you can do in life. You can give to others in many ways. Money, time, and effort can make a difference in someone's life. Donating money can give you more joy than anything money can buy. It adds meaning to your life no matter your age.

Learn how SAVINGS and COMPOUND interest are the key to retiring early!