Financial Literacy: The Basics

Explore how behavioral economics shows money decisions are shaped by habits, emotions, and unconscious biases. Learn strategies to build better money habits, automate savings, and curb impulsive spending.

Explore how behavioral economics shapes money habits and decision making, including cognitive biases, present bias, and anchoring, and learn strategies like automatic savings transfers, reminders, and routines.

Shift from scarcity to abundance mindset by changing money language, reframing beliefs, and pursuing opportunities. Explore practical exercises and real-life examples that boost financial wellbeing.

Create a personal budget by listing income, tracking fixed and variable expenses, and allocating surplus toward savings, debt, or investments, while reviewing and adjusting regularly.

Compare zero-based budgeting and the 50/30/20 method, showing how to allocate dollars of after-tax income to needs, wants, and savings or debt repayment, and decide which approach fits your goals.

Set clear short-term and long-term financial goals to guide your budget and stay motivated. Break long-term aims into milestones, like emergency funds or retirement savings, and review progress regularly.

Explore budgeting tools like Google Sheets, Mint, and Notion to track spending and set alerts. Set up each tool, import data, and review weekly to adjust categories and celebrate wins.

Explore traditional banks, credit unions, and online banks, comparing fees, convenience, and customer service to help you choose where to keep your money.

Compare checking and savings accounts to manage everyday finances, use online banking and a debit card with checking, and store excess funds in savings to earn interest.

Open a bank account by choosing the right bank or credit union, reviewing fees, rates, and documents, then set up online banking to monitor balances and manage funds.

Choose accounts with no or low fees and set up direct deposit to waive monthly maintenance fees, while using ATMs to avoid ATM fees and account alerts to prevent overdrafts.

Learn how credit allows you to borrow now and repay later with interest, and how your credit profile influences rent, loans, and job opportunities.

Explore how credit cards build credit, offer rewards, and provide fraud protections, while outlining risks like high interest and overspending, and strategies to manage responsibly: pay full balance on time.

Explore the main types of debt—student loans, auto loans, and credit cards—and compare federal versus private student loans, their interest, and protections like deferment and income-driven paths.

Master how simple and compound interest drive debt and apr costs, and learn to minimize compounding by paying more than the minimum and prioritizing high-interest debt.

Compare avalanche and snowball debt payoff methods, explaining high-interest prioritization and momentum from quick wins. Suggest steps like minimum payments, automatic payments, and tracking progress with a debt payoff app.

Identify debt traps like payday loans and high-interest cards, read the fine print, borrow only what you can repay, build an emergency fund, and seek nonprofit counseling if needed.

Create an emergency fund as your financial safety net for unexpected events. Automate transfers to a separate, accessible account to cover three to six months of living expenses.

Discover high yield savings accounts from online banks offering higher interest than traditional accounts, insured by FDIC, to grow emergency funds and short-term savings while you compare rates and fees.

Set a clear goal for big purchases—wedding, car, or house down payment—and automate monthly savings to grow in a savings account, tracking progress and milestones.

Automate your savings by setting up automatic transfers from your checking to savings or investments on payday, ensuring you pay yourself first and save consistently.

Investing helps your money beat inflation and earn higher returns than saving, powering wealth growth through compound returns toward goals like home ownership, education, and retirement.

Explore stocks, bonds, and exchange-traded funds, including ownership, interest, and diversification. Build a balanced strategy by fitting the mix to your goals, horizon, and risk tolerance.

Explore how Roth IRA and 401(k) retirement accounts build long-term security. Learn how pre-tax 401(k) contributions, employer matches, and tax-free growth in Roth IRAs help manage future taxes and withdrawals.

Learn the difference between gross pay and net pay, including deductions like federal income tax, state and local taxes, Social Security, Medicare, health insurance, and retirement contributions to budget effectively.

Explore how the US tax system works across federal, state, and local levels, including progressive federal income tax with seven brackets and varying state rules, deductions, and credits.

Compare W-2, W-4, and 1099 forms, explain withholding for employees, and report non-employee income accurately; keep copies for tax preparation.

Gather w-2s, 1099s, deduction receipts, and last year's return, then file electronically or via IRS free options, and double-check SSN accuracy to avoid penalties.

Compare active income, earned for time and skills, with passive income that grows from upfront investment. Include examples like rental income, dividends, and royalties, and plan for stability and freedom.

Plan your career by identifying strengths, interests, and values, researching aligned growth opportunities with BLS data to negotiate a total compensation package including health insurance and retirement plans.

Identify your skills and interests to launch a side hustle. Research the market, estimate startup costs, and track income and expenses while setting aside money for taxes.

Manage your business finances by separating personal and business funds with a dedicated account, track income and expenses, create a budget, and monitor cash flow for profitability and tax readiness.