Developing financial literacy curricula
Abstract
There are many issues to consider when choosing financial literacy curricula and a needs assessment may be useful. Although trainings optimally reflect the unique needs of the audience, financial educator Inger Giuffrida has compiled a list of topics that are commonly included. This list is from the article, "Elements of Effective Financial Literacy Training: Key Components of Effective and Engaging Financial Literacy Training," (May 2000) published on the Enterprise Foundation's website.Issue
Choosing curricula for financial literacy training.Action
Following is a list of topics commonly included in money management or financial literacy curricula. Find out from members of your target audience through needs assessments which topics are most useful to them:- Understanding the Individual Development Account (IDA)
- Setting up, maintaining and using the Individual Development Account (IDA)
- Decision-making or problem solving
- Setting priorities
- Accessing resources — community resources, financial assistance resources, credit counseling resources, financial planning resources, online resources
- Identifying values
- Setting goals
- Identifying barriers or obstacles to achieving goals
- Communicating about financial matters with family or household members
- Calculating income
- Identifying expenses
- Identifying and assessing assets and debts
- Avoiding money drainers (check cashing operations, rent-to-own stores, predatory lending)
- Reducing debts
- Developing strategies to cut expenses (plug spending leaks) and increase income
- Determining ways to save money
- Recognizing the range of saving options
- Calculating interest and understanding compound interest
- Using the IDA to build assets
- Developing a spending plan to achieve goals
- Monitoring plans (tracking progress)
- Keeping records
- Establishing or repairing credit
- Using credit
- Ordering and reading a credit report
- Financial planning for different stages on the family life cycle or for life events — getting married or living together, separation or divorce, having children, personal or family illness or disability, buying a home, retirement, sending children to college, losing a job, death of a partner or family member
- Using financial institutions
- Opening accounts
- Reading statements from financial institutions
- Managing a checking account
- Using electronic banking services
- Getting loans
- Standing up for rights as a consumer
- Calculating net worth
- Recognizing accessible investment options
- Managing risk
- Determining insurance needs
- Reading a paycheck — what is the difference between gross pay and net pay
- Identifying tax obligations
- Filing for Earned Income Tax Credit (EITC)
- Learning how to avoid tax penalties, underpayment, overpayment
- Understanding economic and financial terminology (understanding the evening news)
- Applying economic concepts to personal financial management
- Recognizing the interconnectedness of the economy
- Developing skills related to specific asset goals — business development, homeownership, career enhancing education
Context
Financial Literacy is a process through which an individual, or a family, can gain a basic understanding of banking, savings, and the importance of good credit that allow an individual or family with low- or moderate-income to buy a home or start a small business -- and encourage increased economic stability in a given community.Citation
Giuffrida, Inger. Elements of Effective Financial Literacy Training: Key Components of Effective and Engaging Financial Literacy Training, (2000) From the Enterprise Foundation's Enterprise Resource Database website.Posted On
February 22, 2005For More Information
Rich Peterson
Community Employment Alliance
Senior Program Director