Financial Literacy

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The importance of financial literacy and college students
As student, finances can be difficult especially if you have not sufficiently allocated regular money earned and spent, financial literacy is the very foundation that everyone can benefit learning from
Christina is a 20 years old student, attending Pasadena City College. As a single parent, working a part-time minimum wage job, finances can be difficult, This week her friends have invited her to a weekend Music festival in the Coachella valley, Before even thinking she reply’s “yes “She buys the tickets online using her credit card that has a limit of 700.00-dollar limit the ticket she purchases adds up to 400.00 dollars; When she returns from the trip she notices that she went over …show more content…

Knowing to properly make decisions in the areas of investing, saving, real estate, insurance and retirement it involves being familiar with financial planning the basics of credit card use, saving methods, consumer rights and the time and value of money. Students often fall victim to circumstances whether it is due to lack of a job, debt or monetary hardships the lack of education on the topic of finance literacy leads students to feel discouraged and helpless. Learning the basics of financial literacy allows students to plan for the future, money management, enabling them to stay clear of debt and ultimately leading to financial …show more content…

First I would like to go over a pillar in financial literacy, which is budget planning or budgeting, which is: a spending plan made of two mandatory components expenses and income. A student expenses are clear: tuition, educational fees, rent, food, books & transportation. Many students are under the misinformed idea that income is only accrued solely through having a part-time job or salary, which leads students that are unemployed To believe that they do not have a job or a regular income coming in that they do not need to follow a budget, this is the WRONG assumption. The Majority of students collect some type of financial aid, whether it be Federal, state, or pace financial aid. So even if you do not have a job you have income There are many types of financial aid: reading your scholarship agreement form and do all that you can to maintain your grade point average to will ensure that you receive financial aid for its

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