Financial Literacy

According to the Washington Times, the United States is in more than 300 dollars in debt. Financial literacy according to PBS means using knowledge and skills to manage financial resources effectively for a lifetime of financial well-being helps plan future. Financial literacy means to me is managing money, planning future, and learning about college loans. Everyone has to learn how to manage their money to stay out of debt. There are six categories to split up a budget. The categories are housing, transportation, food, insurance, other, and savings. Thirty percent of your money should go to housing. Housing is important because everyone needs shelter to survive. In order to have any money it is important to have a job. It is important to budget your money because it will help you stay out of debt. The purpose of a budget is to make sure you do not spend too much money and helps you keep track of what you spend. There are bills that have to be paid; very minimal money would be spent on entertainment. The knowledge of using a credit card is important because you do not want to max it out. Having too many credit cards can be bad for you because most likely you will use it just to spend. Maxing out credit cards can decline your credit score. Having a high credit score can open a lot of doors for you like

Financial Literacy helps you plan your future by what job you have and by how much you can afford. Having a low income can only allow you to afford minimal things. Working with little income money, you have to make it work with what you got. It would not make sense to have low income money spending like you have Beyoncé money. Wanting to start a family, you have to have a plan on how to budget your money. Having a family, all the money has to be spent on family so everyone can survive. Going to college can take you a lot of places because having a higher degree makes your income