Is Financial literacy Needed in Today’s Economy
According to Investopedia, financial literacy is the knowledge and application of various financial skills. These may include creating a budget, understanding how credit works, and saving for retirement. Financial literacy includes understanding different financial instruments, such as stocks, bonds, ETFs, and creating an investment plan.
Primerica think so. So as many other financial institutions. States are now taking a closer look at teaching financial literacy. The State of Florida think so. The State passed SB 1054: Financial Literacy Instruction in Public Schools.
The law states that public schools must teach financial literacy. The areas that must be thought are:
- Types of bank accounts offered, opening and managing a bank account, and assessing the quality of a depository institution’s services.
- Balancing a checkbook.
- Basic principles of money management, such as spending, credit, credit scores, and managing debt, including retail and credit card debt.
- Completing a loan application.
- Receiving an inheritance and related implications.
- Basic principles of personal insurance policies.
- Computing federal income taxes.
- Local tax assessments.
- Computing interest rates by various mechanisms.
- Simple contracts.
- Contesting an incorrect billing statement.
- Types of savings and investments.
- State and federal laws concerning finance.