Lifeskill Nine
Financial Literacy (FL) (T) (E)
Introduction to Financial Literacy Life Skills
Information for these Lessons was derived from NEFE High School Financial Planning Program (National Endowment for Financial Education). In order to complete the following literacy assignments, you must obtain a copy of the financial literacy workbook from your instructor.
Assignment #1 is the foundation upon which the other financial literacy skills are based. The order in which you complete the other skills is not important but number one must be completed first.
Each skill corresponds to a chapter in this workbook. It is important that you read the chapter before starting each skill. There are 2 parts per skill: a written portion and an exercise. It is important that you complete the exercises before you start the written portion, as this will help you gather your thoughts and aid you in your writing. Once the exercise has been completed (neatly) in your workbook, have your instructor make a photocopy that can be included in your portfolio.
Credit
Paragraph 1: Discuss the 4 C’s of Credit & their importance with establishing and maintaining a good credit history.
Paragraph 2: Discuss two strategies needed to build/maintain a good credit history. Discuss two things that you can do to increase your credit score in the next five years.
Paragraph 3: Discuss two investment vehicles that can positively impact your credit scores. Explain importance of opening & maintaining a credit card.
Financial Services
Paragraph 1: List and describe three different financial services, explain their importance.
Paragraph 2: Explain the difference and similarities with a checking and saving accounts. Thoroughly explain three services that can make using a checking/savings account easier.
Paragraph 3: Explain the importance of investing and how it works. Explain the different types of investments and how the risk/reward element works. Explain the element of compounding interest and include its importance.
Insurance
Paragraph 1: What is insurance and explain which are involved in your lifestyle now.
Paragraph 2: Identify lifestyle changes that will affect your insurance needs now and three years from now.
Paragraph 3: Describe how your insurance needs will affect your budget. List three specific ways you can reduce your insurance costs.
Goals/Money Management
Paragraph 1: Discuss what SMART goals are. Include one short -term, one intermediate, and one long -term goals.
Paragraph 2: What role does CREDIT have in achieving or hindering your financial goals?
Paragraph 3: What role does FINANCIAL SERVICES have in achieving or hindering your financial goals?
Paragraph 4: What role does INSURANCE have in achieving or creating hindering your financial goals?
Paragraph 5: Summarize the importance of having an organized financial plan to have a successful future.
Please click on the attachment below to download a printable version of this lifeskill