Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with ALL of their financial resources. Understanding this basic financial concepts allows people to effectively navigate in the financial system.

How does 505 Financial Literacy Program Work?

Even though financial literacy is crucial to successful “adulting,” a mere 17 states require high school students to take a course on financial literacy. These courses have proven to have a direct impact on a student’s ability to make wise financial decisions, that is the main reason why 505 Financial Solutions has developed a Training Program that will “prepare” adults to face their financiances in a more educated way. 

Financial literacy involves the proficiency of financial principles and concepts such as financial planning, compound interest, managing debt, profitable savings techniques and the time value of money. The lack of financial literacy may lead to making poor financial choices that can have negative consequences on the financial well-being of an individual. Consequently, the federal government created the Financial Literacy and Education Commission, which provides resources for people who want to learn more about financial literacy.

The main steps to achieving financial literacy include learning the skills to create a budget, the ability to track spending, learning the techniques to pay off debt and effectively planning for retirement. These steps can also include counseling from a financial expert. Education about the topic involves understanding how money works, creating and achieving financial goals and managing internal and external financial challenges.

We want your company to be an employer of choice. We focus on helping your company to become #1 not only in your business field, but also to your employees. 505 Financial Literacy Program helps employess release the stress that causes them to be unproductive, the skills they learn help them focus on the job instead of their security.

Most Companies are not profitable because they dont have productive employees! Have you ever wondered what is taking up your employees time and atention? 

If an employee feels worried or frustrated, they will focus their time, energy and attention trying to “resolve” their problems. With 505 Financial Literacy Program we teach your employees the bases for having healthier finances; when finances stop been an issue, they will focus on the job they have been hired to perform. 

Key Concepts to Work on in Order to Improve your Financial Literacy

Budgeting Basics

Creating and maintaining a budget is one of the most basic aspects of staying on top of your finances. In this modern day, it’s easier than ever to create a budget with the help of websites and apps, such as Mint.com.
It doesn’t matter if math isn’t your strong suit – thanks to these user-friendly tools, everyone can get help with keeping their finances on track. And, when utilized properly, they’ll keep you in the know about where your money is actually going.

Without following a budget, it’s difficult to hold yourself accountable on where your money is coming from and what it’s going toward, so mastering the basics of budgeting is where any financial novice should begin.

The Impact of Interest

While you may touch upon the concepts within a mathematics course, it’s important to understand different aspects, like compound interest. Why? Not only can it help you save even more, but it can make the difference between borrowing a small amount and paying back much more than you need to for years to come.
Understanding the ins and outs of interest can impact your finances more than you likely realize, so it’s an important concept to gain a better understand of early on in life.

Staying Savvy
by Saving

Obviously, saving is an important aspects of maintaining a healthy financial situation. But, the majority of students don’t prioritize this aspect as much as they should. It’s easy to ignore things like retirement since it seems so far off in the future. Learning to save early on can help you gain the knowledge, practice and set of skills you’ll utilize throughout your entire life.
Beginners can start working on this concept in the simplest sense, like saving money for a higher-ticket item they desire. Working toward a goal is key here and students need to understand that there’s a lot of value in paying yourself first – because the bills will always be there. Having peace of mind? Well, that comes with practice, diligence and patience, all qualities you’ll develop when mastering your savings skill set.

The Credit-Debt Roller-coaster

Maybe roller-coaster isn’t the right term – perhaps, downward spiral is more accurate. Meaning: it’s much easier to lose credit than gain it and many students don’t realize how easy it is to ruin their credit – and how difficult it can be to regain credit – before it’s too late. That’s why it’s crucial to provide knowledge on debt earlier than later.
Credit can be an extremely useful tool – if it’s managed correctly. Making rash decisions when you’re young can end up costing you throughout adulthood so it’s important to grasp the concepts and tools behind responsible credit practices as early on as possible.

Identity Theft & Safety Issues

In this modern day and age, identity theft is more prevalent than ever. Since everything is digital and just about everyone has shopped online at one point or another, your financial information is more vulnerable to fraud. Understanding this concept, along with preventative measures, like password protection and limiting the amount of information shared online can be the key to maintaining safe accounts or, inversely, can lead to financial ruin.
While it’s not a fool proof science (people can be safe and things do still happen) it’s important to safeguard your finances as best as possible to avoid the threats that exist.