Exploring Financial Literacy 4 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. LO 1-1 LO 1-1 Financial Literacy You, as a teen or young adult, have been using money for much of your life. Do you think about where your money goes or how you spend it? Do you think about saving it? You have a responsibility to use money wisely. You are accountable for your future. An important key to your success will be financial literacy. Financial literacy is knowledge about basic topics related to finance, such as making, spending, and saving money. To succeed in a modern economy, you need to learn to make wise financial decisions at an early age. Financial capability is the ability to combine financial knowledge with the attitude, skills, and behaviors needed to use money wisely in a person’s own life. Financial capability will help you lead a productive life and contribute to your community positively. Creating a financial plan is the first step in planning your financial future. A financial plan is a set of goals for acquiring, saving, and spending money. The plan also includes actions or strategies for achieving the goals. Do you want to just “get by” and live from paycheck to paycheck or be free from financial worry? Will you leave your financial security up to chance or follow a plan? A financial plan helps you control your financial situation and achieve your goals. Check Your Understanding Why is it important to have a financial plan? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Many people around the world struggle to obtain basic daily needs that others take for granted. F F Y I Internet Research Money Tips for Teens 1. Using the Internet, research money tips for teens. Find and read two articles. 2. List the title and complete source information for each article. Article 1: _____________________________________________________________________________________________________ _____________________________________________________________________________________________________ Article 2: _____________________________________________________________________________________________________ _____________________________________________________________________________________________________ 3. On a separate sheet of paper, write a paragraph or bulleted list that summarizes the information contained in the articles.