Key Skills for Financial Wellness
1. Understanding Credit
What is Credit?
Credit is the ability to borrow money with the promise to repay it in the future. It’s essential for accessing loans, mortgages, and other financial products.
Why it Matters
Good credit opens doors to major purchases like homes, cars, and even some employment opportunities.
Types of Credit
Revolving credit (e.g., credit cards) allows ongoing access to funds, while installment credit (e.g., loans) involves regular payments over time.
Impact on Your Score
Responsible credit use can strengthen your score, while high utilization or late payments can harm it.
3. Holistic Personal Finance
Budgeting for Stability
Budgeting helps prioritize spending, save for goals, and avoid debt, creating a foundation for financial stability.
Debt Management Strategies
Methods like the snowball or avalanche approach can reduce debt systematically, enhancing financial health.
2. Building and Maintaining Good Credit
Keys to Building Credit
Make timely payments, keep your credit utilization low, and establish a long credit history.
Avoiding Pitfalls
Late payments and high credit utilization can damage your score. Budget wisely and set up reminders to stay on track.
4. Making Informed Financial Decisions
Evaluating Financial Products
Understand key terms, compare interest rates, and assess fees when choosing loans or credit cards.
Student Loans
Loans can build credit but require repayment. Choosing flexible plans and paying on time can help avoid burdensome debt.
5. Empowering Through Financial Literacy
Resources for Continued Learning
Access free courses on platforms like Khan Academy, follow financial blogs and podcasts, or join community workshops to stay informed and make confident financial choices.
Curriculum can be customized for you upon request!
