FINANCIAL LITERACY TIPS FROM YOUR VATAT CREDIT UNION BY: M E R E D I T H H A R T M A N N L O A N O F F I C E R , V ATAT C R E D I T U N I O N
W
hat is financial literacy, and why is it important? According to Experian. com, financial literacy is the confident understanding of concepts including saving, investing, and debt, leading to an overall sense of financial well-being and self-trust. Many Americans are not familiar with financial literacy and why it matters to them. The basics are creating a budget, understanding basic concepts of credit cards, and having a plan for the future. It is the foundation of your relationship with money and will be something that you are constantly working on to improve. Unfortunately, financial literacy and money matters are often not taught in a classroom or part of the lesson plans for students. This leads to many young people learning about money from their friends, family members, Google, and social me-
dia. Which is not always a bad thing but does not provide a foundation for a long-term understanding of money and how much it can impact your future. Here are a few ways to improve your financial literacy and well-being:
BUDGET
Make a list of all your expenses, so you have a visual of your monthly breakdown
SAVE
Set a goal of what you would like to save and then pay yourself – you are going to be a part of your monthly budget
CREDIT REPORT
Always review your credit reports to ensure they are accurate and promptly report any errors. Visit www.annualcreditreport.com for more information on pulling your credit from the three major bureaus: Experian, TransUnion, and Equifax. This is a free service and does not impact your credit. Be wary of sites that charge a fee.
PAY YOUR BILLS
Set your accounts to debit your minimum monthly payments automatically, so you are not late on your payments. Missing a $40 minimum payment on a credit card will impact your credit score and cause it to lower. I know how busy you are at show season and all year, so this is the best way to ensure you are not “losing credit” over an avoidable mistake. 10
