April is Financial Literacy Month. Escape Velocity has been working with the youth so they can gain basic information about finances and money. Below is information we’d like to share with the community about financial literacy.
What is Financial Literacy?
Financial Literacy is the knowledge necessary to make important financial decisions that leads to an overall sense of financial well-being and self-trust. It can help with decisions about things such as budgets, savings, debt, taxes, and investing.
How Typical Americans handle money:
- Nearly four out of every five U.S. workers live paycheck to paycheck.
- Over a quarter never save any money from month to month.
- Almost 75% are in some form of debt, and most assume they always will be.
Financially literate people know their way around a budget, know how to use sinking funds, and know the difference between a 401(k) and a 529 plan.
Concepts financially literate people have mastered
- Budgeting
- Emergency Funds
- Debt
students and financial literacy
Many young students are boosting their financial literacy through personal finance courses in high school but more schools should be offering these classes.
Twenty-one states require students to complete a personal finance course prior to high school graduation as of 2020, according to the Council for Economic Education.
However, the size and scope of mandated high school personal finance classes vary. Only six states require students to complete a semester-long, standalone class. Other states offer a shorter course or fold curriculum into a different class.
Surveys show that students who had taken a course in personal finance highly understood key financial topics such as:
- The difference between credit cards and debit cards (86%)
- How to pay income taxes (87%)
- How home, auto and life insurance work (90%)
- How student loans work (94%)
- What a 401(k) is and how it works (79%)
These are concepts and information we want our African American youth to learn as well, so they can be financial sound now and in the future. Teaching them while they’re young is important.
Wealth Gap
African Americans have struggled for decades to build wealth in America. Historical injustices; including slavery, systematic inequality, employment discrimination, racist housing policies and other barriers — have hindered economic well-being and harmed retirement confidence for the community.
Today, the average white family has eight times the wealth of the average Black family, according to the Federal Reserve’s 2019 Survey of Consumer Finances.
Closing the racial wealth gap in the United States is a complex issue with no one-size-fits- solution. But expanding financial literacy, education and job training efforts can help, experts say.
Resources
Financial Literacy Books
- 14 Best Financial Literacy Books by Black Authors
- 21 Must Read Books For Financial Literacy And Generational Wealth
- All Things Literacy Bookshop Financial Literacy and Legacy Building Book List
- Greater Sacramento Financial Literacy Group (GSFLG) Flash Cards (pdf)
Sites and Podcasts
Banzai!
Banzai is an award-winning, interactive content platform that teaches real-world finance and practical life experience. Banzai lets students practice managing their money and test their decision making skills. Best of all: it grades itself!
FDIC’s Money Smart for Young People
Y4Y Financial Literacy for All Resources
Million Bazillion Podcast for Kids
SAINT NIA FOUNDATION
The Saint Nia Foundation is a Sacramento 501(c)(3) non-profit organization founded in 2001. Saint Nia is dedicated to empowering youth through financial literacy, self-exploration, self-improvement, and enrichment.
SIGNIFICANT CHANGE
This site provides resources, services and tools to help financial habits. The company’s game changing philosophy is to Cultivate Prosperity™. It’s a solid foundation for wealth. Don’t just live for the moment. Improve your financial habits, manage money well, build wealth over time and bless others with it, too.
#1 National bestselling author, Anthony O’Neal has helped over 250,000 people set out on a path towards a debt-free life with his chart-topping books and resources.
This podcast provides helpful financial literacy resources to Black college students and other African American listeners. Popular episodes cover student debt fundamentals and advice from Black business women.
BUILDING BREAD
This site offers tips and tools for Black students and professionals looking to increase their personal wealth. The organization provides one free financial planning course for first-time visitors and affordable courses for members.
GREATER SACRAMENTO FINANCIAL LITERACY GROUP
Jay King is Founder/Organizer of GSFLG. Through teaching Financial Literacy and educating our community on the Fundamentals of Money Management. GSFLG wants to empower our community with the ability to control their financial destiny.
Lazetta Rainey Braxton, MBA, CFP has decades of experience helping banks and other investment firms address Black college students’ unique needs. Her free newsletter offers financial planning advice.
Tonya Rapley created My Fab Finance to help people reduce debt and build a stronger financial future. Her blog offers free advice on teaching children financial literacy, shopping smart, and researching the best financial services.
PAYCHECKS & BALANCES
This site provides young professionals with helpful personal finance tools, including a resource center, blog, and podcast. The blog covers topics such as saving money without reducing personal happiness and negotiating rent.
STOCKS & STILETTOS SOCIETY
The Stocks & Stilettos Society is a community of women who are beginning investors stepping up their financial game through the power of investing to achieve their financial and wealth-building goals. The Society was founded by Cassandra Cummings, a financial advisor and investment adviser representative for nearly 20 years.
Students can explore free guides that cover investing, real estate, credit cards, and cryptocurrency. Visitors do not need to create an account to access resources.