Introduction: Why do we need financial literacy?
Why do we have to care about financial literacy? As a college student, isn’t it more important to focus on academic performance? Although studying hard is your responsibility to ensure student success, simply studying hard and earning a degree does not guarantee your success after graduation. More importantly, making money does not automatically translate into your financial freedom and wellness. Regardless of how much money you make, you have to learn how to manage your money effectively, and that is the goal of building financial literacy.
If you are a traditional college student, college years are likely to be your first experience to manage money on your own. During these years, we encourage you to build a strong foundation of financial literacy that you can carry throughout your life and feel more confident about your financial future. At the same time, we understand that although you may realize the importance of financial literacy, many of you have not been adequately introduced to “how” to build it because it's often assumed as your personal responsibility and may not be taught in school. Therefore, in this module, you will learn the fundamental principles of financial literacy and how to apply them in your situation. This module is a quick, condensed guide to core healthy financial habits you are encouraged to develop. After completing this module, you can visit other modules to explore specific financial topics in more depth.
In order to build essential financial literacy, you can follow the five steps listed below. Let's get started!
Chapter 1. Earning money is the start of financial independence
Chapter 2. Saving and investing explained
Chapter 3. Pros and cons of borrowing money
Chapter 4. How do you assess your spending habits?