37th Annual Junior Achievement of Memphis Spring Bowl-A-Thon

Hello family and friends and welcome! I want to personally thank you for stopping by and helping in a cause that I am truly passionate about. I really enjoy empowering students to help them realize that the education they are getting today(more pointedly money matters) will help them to have a bright future tomorrow. Financial literacy is the ability to manage one’s money. The goal of financial literacy is to help in understanding financial concepts that will help them to manage their money better. It is a life skill that one must grasp for good financial wellbeing. Financial literacy includes budgeting, investing, insurance, and loans and interest.

Financial literacy is the ability to understand and effectively use financial skills. These financial skills are as simple as budgeting, investing, credit management, and financial management. In other words, financial literacy is the ability to manage money. A strong foundation of these financial skills will help in achieving various life goals like retirement, education, and even going on a vacation.

In conjunction with teaching children about financial values and managing money, parents should develop a maturity and age-appropriate “training” program to help reinforce what they have been taught. Early on it could consist of training a child to save, spend and give a portion of their allowance. During the teen years it can be managing earnings from a summer job or helping them manage a neighborhood yard-mowing business. Later, it may be participating in the investment or grant committees of the family foundation. Regardless of the life stage, practical experience will reinforce what they have learned.

It is important to keep in mind that financial literacy can be developed at any stage of life. Affluent parents would be prudent to discuss with their financial advisor how best to begin to prepare their heirs for the wealth they will inherit, regardless of the ages of their children. The financial advisor and other professionals may play key roles in the education process, not only to avoid what might seem like parental lectures, but to introduce or deepen the relationship between the children and the parents’ professional advisor network. If parents have delayed having open financial conversations with their children, it is never too late to start.

Financial literacy includes many skills. However, the most popular ones are budgeting, managing expenses, paying off debt and understanding the risk return trade off in investment products. Financial literacy is important because it equips one with the knowledge and skill to manage money effectively. Without financial literacy, the actions and decisions one make or do not make with respect to savings and investments would lack a strong foundation. Financial literacy helps in understanding financial concepts better and enables one to manage their finances efficiently. Furthermore, it helps in effective money management, making financial decisions, and achieving financial stability. Moreover, financial literacy provides in depth knowledge of financial education and various strategies that are indispensable for financial growth and success.

5 Takeaways for Rising Generation Financial Literacy

Be purposeful about teaching your children your financial values.
Make learning fun and interesting, maturity and age-appropriate.
Be comfortable with a plan that spans a number of years and adapt your plan if helpful.
Reinforce their learning with practical experiences.
It is never too early or too late to begin to learn financial competency.