Why Financial Literacy Should Be Taken Seriously & Taught To Everyone

Unfortunately, none of us have been taught about managing money and saving in schools, but what we are taught is trigonometry!

Having knowledge and skills to manage finances in an accurate manner once the college is over and amateurs are all set to begin with their work responsibilities is crucial.

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The app is currently free to download; however, the owners are planning to change it into a subscription-based model along with premium features.Lune sounds like a complete package of convenience to us.

Undoubtedly, technology has made it much easier for us to order food, shop, and do other activities, which traditionally required physical presence.

Talking about money management apps, it is an incredible initiative that’ll help people with financial planning.

Importance of Financial Education For YouthFinancial Education is an understanding of knowing how money is made, spent, and saved, as well as how money works.

It is the technique of investing and managing worth and the skills and ability to make a decision to maintain financial resources in the best way.

Financial Education provides us with the knowledge and technique we need to operate flawlessly.

Without minimum financial literacy, people make the wrong decisions or actions, and hence, they lose money saved for years and hard work.

Unscrupulous life insurance agents cheat the people who don't have enough financial education.

Financially illiterate people can be cheated from loans which are availed without understanding interest payments and the consequences of a default.

Forbearance under the CARES Act has been the biggest lifelines for homeowners during the pandemic, which left them with some cash for emergencies.According to the results of a survey by Credit Karma many people who went into forbearance still remained stressed about getting and staying on track with mortgage payments.According to the Mortgage Bankers Association as of April 25, 2021 close to 2.2 million homeowners had entered forbearance plans.More than 4 million U.S. mortgages were in forbearance in May 2020.Of those who were in forbearance, 59% said if they were able to delay their mortgage payments then they would be financially stable, and 62% felt stressed about the payments that they would need to make in the future.While in forbearance, 34% used the money that would have gone toward their mortgage for essentials like groceries, medical needs, utilities, and additional expenses faced during the pandemic, as the homeschooling equipment and caring for additional family members.About 32% put the money toward an emergency fund or general savings.

And 21% used the cash to pay down debts like student loans or credit cards.The balance 13% said they didn’t have any extra money, even while they were in forbearance.Even if forbearance allowed people to stay in their homes, and saved the money for necessities like groceries, medical attention or even to pay down debts.But it comes at a cost because, at the end of your forbearance period, you still will have to pay it back.Other understanding from the survey -:Many want to own homesClose to 30% of respondents were considering a home purchase in a year’s time.

And out of the 70% who weren’t looking for a home in the next 12 months, 2% said they’ll never want to buy a home.Lack of financial literacyIn regards to understanding two basic terms related to homeownership, only 54% of respondents choose the right answer about home equity.62% responded correctly to identifying the meaning of home value.It was surprising, of people who had tapped into their home equity in the last 12 months, only 45% were aware of the correct definitions of home equity and home value which is an indicator that people are getting financial products without fully understanding it.84% were aware that it’s possible to leverage home equity to access cash.Andy Taylor, general manager for Credit Karma Home said, that the first step to getting forbearance is talking to your mortgage servicer and knowing about its options.And if the mortgage servicer is not the same as the financial institution of your original mortgage, then customers need to make sure they are talking to the correct party.A customer should also know who is backing their mortgage.

If the mortgage is backed by Fannie Mae, Freddie Mac, or the federal government, then additional help will be.Depending on the type of loan the forbearance can be different.

Taylor urges people to be sure to understand what they will owe when forbearance ends.One needs to know that the interest continues to accrue even on the paused or reduced amounts.Taylor says since the whole process can be overwhelming, seek professional help.The Consumer Financial Protection Bureau has created a tool to help people to find housing counselors who are approved by the Department of Housing and Urban Development.Reference Source: USA Todayhttps://www.compareclosing.com/mortgagenews/where-did-the-forbearance-money-go/

Financial Literacy Resources is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.

People with appropriate financial literacy training make better financial decisions and manage money better than those without such training.

This means learning how to pay your bills, how to borrow and save money.

Maintaining its long-standing commitment to support financial literacy in the communities across the Carolinas, First Bank is sponsoring the EVERFI National Financial Bee—a first-of-its-kind nationwide financial literacy challenge for students in 7th to 10th grade.Hosted and created by EVERFI, the National Financial Bee takes place April 20-30, 2020, and provides an opportunity for students to have some fun and learn critical financial concepts at home while social distancing during the current pandemic.

It features a short daily digital lesson and capstone essay contest in which students will share a financial dream of theirs and how they plan to get there.The winners of the National Financial Bee will receive a total of $20,000 in college scholarships.

First Bank is also offering three $1,000 scholarships to students in the Carolinas who enter through its contest website.“We’ve always believed in the power of teaching children to save and to be smart with their money,” said Bill Bunn, EVP and branch banking executive.

“The National Financial Bee was an ideal vehicle to do that at a time of unprecedented uncertainty.

We are proud to support parents and students in this way, and hope it helps drive dinner-table conversations about important financial topics.”During each day of the challenge, participating students will gain new skills to create a personalized financial decision-making framework that they can apply to their lives now and in the future.

Topics include spending and saving, credit and debt, employment and income, investing, and insurance.“Across the country, families are facing unprecedented uncertainties and challenges.

Financial literacy is about knowing how to responsibly manage your money so that you can comfortably afford and grow it.

Financial literacy helps people prepare for retirement by giving them a realistic expectation about how much they will need in their golden years.

However, if you're self-employed or do-it-yourself, it may be harder for you to prepare for a sudden crisis because you won't have access to an emergency fund.Check Your Credit Report - A large number of people are victims of credit card fraud, most of whom don't even realize that they've been the victims.

Financial literacy means being able to identify fraudulent activity, such as a bank account in your name that you never opened, charges that you didn't make, and credit cards in your name that you didn't use.

This means that you need to check your credit report for mistakes or errors to make sure that you are not a victim of fraud.Contribute - Don't be stingy when it comes to contributing to your retirement or emergency fund.

Some retirees and small business owners only contribute half of what they actually need.

We’ve all heard the stories of parents buying their newborn a property or putting money into shares.

But setting up your kids’ future is something that most parents will think about almost from the time they arrive.So what is the best way to invest for your children – bonds, term deposits, shares, property or super?Perhaps surprisingly, one of the more important things to look out for isn’t the capital gain, though this is a consideration.

High-interest savings accounts If you have a small amount to invest, a high-interest bank account could be the way to go.

Not only are they relatively simple to set up and administer.Investment bonds Sometimes called insurance bonds, investment bonds are a good option for larger amounts of money.

A lot like superannuation, the fund that holds the investment pays tax at a rate of 30 per cent meaning you don’t need to include any earnings in your taxable income.

Shares Putting some money in shares can also be a profitable option for long-term investments.

While tax accountants are primarily trained to audit federal and provincial tax returns, these accountants can also provide their own accounting services for clients in the Vancouver area.

These accountants are qualified to make sure the Vancouver area is meeting its legal obligations and that Vancouver tax credits and rebates are not being abused.Benefits of Hiring a Small Business AccountantAnother reason why a business owner would use a Vancouver small business accountant is to assist in the creation and structuring of the company's business plan.

While the overall purpose of having a business is to profit, starting a new business from scratch requires understanding all the legalities of setting up business operations as well as the business tax credits and benefits that you can claim.

The Vancouver accountant will be able to assist the business owner in this process by providing him or her with accurate and up-to-date information regarding the advantages associated with the various options.

In addition, the Vancouver accountant can help in the negotiation of new terms related to accounts receivable, accounts payable, credit card debt, loans and leases.Business owners can also get their business approved for credit cards with a chartered professional accountant.

They can also determine which bank is best for a business owners' needs as well as other important financial details.