"The financial literacy statistics are a crystal ball into the future. Seeing that the majority of college students don’t understand the importance of paying bills on time is a financial literacy statistic that says to me that a lot of those students will have credit problems. Seeing the financial education statistic that states that most do not have a set savings plan shows me that there will probably be a lot of people not able to retire."
"I think it’s obvious, that, unless we change these negative financial literacy statistics into positive financial education statistics that many people will still suffer from money problems."
Erin Mitchell, Student Intern from the National Financial Educators' Council
So You Want to be Wealthy?
If I were to do an informal class poll on who wants to be wealthy, a majority, if not all, hands of the class will be up in the air. However, the sad reality is that the majority of high school-aged students do not have the most basic training in how to approach their finances upon the imminent reality of living on their own.
The National Financial Educator's Council (NFEC)
The National Financial Educator's Council (NFEC) states that the lack of financial knowledge results in hardships of debt, lack of retirement funds, and no savings to address financial emergencies. Groups like the NFEC seek to address this lack of knowledge with training and awareness of potential problems that may arise for future generations.
What is Financial Literacy?
For the thirteen digital literacies that will be addressed in the Dudley SciVis blog, you will need to understand what it means to be literate. Literacy is simply competence (ability to do something well) or knowledge in a specific subject, especially the ability to read and write. Financial literacy would then be the ability to read, write, and gain knowledge of or about financial (money-related) matters. Areas that would be under the umbrella of financial literacy include, but are not limited to, budgeting, paying bills, having and maintaining a savings and/or checking account, buying and selling products, marketing products for sale, and laws which govern how finances work. These areas require more than just reading and writing, and, as it is a 21st century skill, you must apply this and the other literacy types in order to be considered literate in this and other areas.
Applying Financial Literacy
The chart below is an example of someone's utility bill with Duke Energy. It shows the gas and electricity usage for a particular home. Using your understanding of how to read charts, answer the question below the chart.
Based on the presented answer the following,
(1) What can you understand about the peak times of electric usage in comparison to the gas usage at the same time and what could be the reason for the similarity or difference in gas to electricity usage that you see detailed on the chart?
(2) How would these changes affect your family budget if rates are adjusted higher for kWh (kilowatts per hour) during peak times of electric usage, but not for hundreds of cubic feet (CCF)?
(3) What are your personal thoughts on financial literacy and how prepared you are to take on financial responsibilities?
Labels: 21st Century Skills, Digital Literacies, Financial Literacy, Literacy