Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Most foster youth have never consistently had an allowance or income, have never been taught the basics of banking, and lack the knowledge of planning for the future. Our Financial Planning 101courses are taught in the Learning Center and cover multiple, money-related topics.

 

 

 

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Basic Banking and Budgeting 

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• Using financial institutions

  • How to open savings and checking accounts

  • Reading bank statements

  • Managing a checking account

  • Using electronic banking services

  • Recognizing the range of saving options

  • Calculating interest and understanding compound interest

  • Understanding the importance of budgeting to achieve personal and financial goals

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• Credit and debt

  • How to establish and use credit responsibly

  • Repairing poor credit (Many foster youth are the victims of identity theft resulting in poor credit)

  • Ordering and reading a credit report

  • Securing loans, grants, and scholarships for education

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• Identifying expenses

  • Avoiding money drainers (check cashing operations, rent-to-own stores, predatory lending)

  • Understanding the proposed and actual costs of owning or leasing a car

  • Developing strategies to cut expenses (plug spending leaks) and increase income

  • Determining ways to reduce debts and/or save money

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• Reading a paycheck

  • Knowing the difference between gross pay and net pay

  • Understanding and identifying various types of insurance, the protections they provide, and the risks associated with remaining uninsured

  • Understanding how taxes affect paychecks and the difference between net and gross income

  • Understanding tax obligations

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• Understanding economic and financial terminology (e.g., understanding the evening news)

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• Accessing resources

  • community resources, financial assistance resources, credit counseling resources, financial planning resources, online resources

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• Setting goals and priorities (e.g., housing rental, home ownership, post-secondary education)

  • Identifying barriers or obstacles to achieving goals

  • Developing a spending plan to achieve goals

  • Monitoring plans (tracking progress)

  • Keeping records

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• Preparation for living independently, paying rent, and securing a lease

  • Identifying affordable homeownership programs available to low-income workers

  • How to fill out a rental application