Financial literacy is the ability to understand how money works in the world: how money is earned, managed, invested and donated to help others.
Here’s a pop quiz to get you started - http://www.usfinancialcapability.org/quiz.php
To help you understand your personal finances, Compass Catholic has a series of calculators for you to use: http://compasscatholic.org/calculators/. If you are currently paying off your mortgage click on the mortgage calculator and see the amount of interest you will save over the course of the loan if you added an extra $25, $50, $100 or more each month. Wouldn’t you rather keep the money in your pocket than pay interest to the bank? While you are there, check out the retirement calculators to see if your savings are on track and to get a ball park estimate of the amount you need to have saved when you retire.
Second Half – A Leaky Budget
“Leak” is defined as something escaping through a hole. So a budget leak means money is escaping through a hole in your budget. You may be spending money on the same things over and over again without even thinking about how or why you are buying them.
Maybe you are buying name brand products but haven’t tried a generic brand, which could be just as good (or maybe better). Or prices on the products you purchase regularly have escalated, but you haven’t noticed. Leaks are caused by everything from add-ons in the grocery line to bank fees, expensive ways to spend free time and interest payments on debt.
Plugging your budget leaks is part of being a good steward. Luke 16:11 tells us “If you have not been faithful in the use of worldly wealth, who will entrust you with true riches?” Sealing up those budget leaks helps you be faithful in using your worldly wealth.
Join the Beans for informative and practical discussions about money: how to earn it, spend it, manage it, give it, save it, invest it, and even how to train our children to be money smart.