According to the Financial Literacy and Education Commission, if you have these concepts down, you’re on your way to good financial health.
1. Earning – In order to be financially stable, you’ll need a source of income.
2. Spending – You should actively spend so you’re meeting all your needs, allowing for wants, and setting some aside for savings.
3. Saving - Speaking of savings, it’s important to build up some financial reserves for the future.
4. Borrowing - You should fully understand all the ins and outs of any loans you need.
5. Protecting - Those who do well with money, know how to safeguard their money.
The more you master these five key concepts, the healthier your financial life will be!
For more information about the basics of managing money, take a look at our FREE online courses about building financial capability in our online Financial Education Center.
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