12 Principles of Financial Literacy

January

Theme

New Year’s Resolution
Developing Short- and Long-Term Financial Goals

Activity

Video Contest, January–April

New Year’s Resolution

Tips

1. Plan — Develop a spending plan and list all expenses. Be sure to include all expenses, even less-frequent bills such as a driver’s license renewal.
2. Be SMART — Smart is an acronym for Specific, Measurable, Achievable, Relevant, and Time-Based. This strategy creates clear goals that are trackable.
3. Prioritize — Track your spending. Be sure your spending and saving habits reflect your financial goals.

February

Theme

Pay Yourself First — VT Saves
Making Savings a Habit

Activity

VT Saves

Pay Yourself First — VT Saves

Tips

1. Automate — Set up automatic transfers so that a portion of your paycheck is deposited directly into savings.
2. Start Small — Set realistic savings goals. Instead of an emergency savings goal of 6 months of expenses, start with 1 month. Break each goal down into categories and label each account.
3. Round Up — Check with your financial institution or try an app that rounds up your purchases to the nearest dollar and deposits the change into a savings account.

March

Theme

Taxes
Understanding Taxes

Activity

Open

Taxes

Tips

1. Organize — Be sure to keep documents that you’ll need at tax time.
2. Break Even — It’s best to break even at tax time instead of getting a large tax return. It’s better to have the funds in hand and hopefully earning interest throughout the year.
3. Pay on Time — April 15th comes once every year. Be sure to plan accordingly and file before the deadline. An extension could end up costing you more money.

April

Theme

Financial Literacy
Personal Finance at Your Own Pace

Activity

Financial Literacy Month, Vermont Financial Award

Financial Literacy

Tips

1. Zogo — A fun financial literacy app that pays you to learn about personal finance. Now you can earn while you learn!
2. Community — Local and online resources are available in your community to help you reach your financial goals. Check out JumpStart resources, MyMoney.Vermont.gov, or your local financial institution for more information.
3. Invest — Financial education is a lifelong journey. Invest in yourself early and often for the best returns.

May

Theme

Credit Reports
Why Does Credit Matter?

Activity

Teacher of the Year

Credit Reports

Tips

1. AnnualCreditReport.com — Authorized by federal law, this site is the only source for free credit reports. The law requires that the three credit reporting companies, Experian, Equifax, and TransUnion, give you a free credit report every 12 months.
2. Important — Your credit report and score are important tools in determining your credit worthiness. Employers, landlords, utility companies, and financial institutions are just a few of the groups interested in your credit.
3. Review — Reviewing credit reports helps you catch signs of identity theft early.

June

Theme

Technology
Using Technology to Help Manage Your Money

Activity

Planning Session

Technology

Tips

1. Explore — Discover apps and mobile banking to manage your money more effectively with less time and effort.
2. Awareness — Be able to track your spending and check your account balances easily through mobile banking.
3. Automate — Use technology to automate activities such as transfers and alerts to help reach your goals

July

Theme

Financial Independence
Money Management Leads to Independence

Activity

New Board Members

Financial Independence

Tips

1. Independence — Save a minimum of 10% of your earnings toward your future. Building a financial cushion will allow you the flexibility to have choices in life.
2. Commit — Adopt healthy financial habits by following a spending plan. Enhance your life by reaching your goals and reducing financial stress at the same time.
3. Guidance — Seek out financial guidance to navigate life’s challenges and to reach milestones. Experts’ knowledge and experience can help you strengthen your skills.

August

Theme

Back to School
Compare Prices and Track Spending

Activity

Open

Back to School

Tips

1. Compare — Do price comparison shopping for the best value. Free online apps make comparing prices easy and save you time as you get ready for school.
2. Set Limits — Know the amount of money you can spend for items and stick to it. Prioritize your items according to need vs. want.
3. Shop — For the best deals, shop early or off season. Shopping at the last minute may lead to impulsive or costly decisions.

September

Theme

Consumer Protection & Identity Theft
Protect Your Personal Information

Activity

Open

Consumer Protection & Identity Theft

Tips

1. Complex passwords — Strengthen your password by using a passphrase. A longer passphrase will be more secure and be easier to remember.
2. Awareness — Limit sharing your personal information on social media.
3. Devices — Keep all software versions up to date. When upgrading your cell phone, be sure to reset it to the factory setting before disposing.

October

Theme

Credit Scores
Your Score Matters

Activity

Vermont Teachers Conference

Credit Scores

Tips

1. Always — Pay all bills on time each month. All payment activity will reflect in your credit report history and score.
2. Why — Your credit score affects the cost of a car or mortgage loan payment, credit card approvals, apartment requests, insurance premiums, and even a job application.
3. Never — Do not close your first credit card. This may be your longest trade line and is an important factor in your credit score.

November

Theme

Holidays
Planning & Budgeting to Keep You On Track

Activity

National Jump$tart Conference

Holidays

Tips

1. Plan — Develop a spending plan to include everything: travel, entertainment, food, and gifts. Assign a monetary limit for each category and stick to your plan.
2. Compare — Price compare for the best value. Free online apps make comparing prices easy, saving you money and time.
3. Shop — For the best deals, shop early or off season. Shopping at the last minute may lead to impulsive or costly decisions.

December

Theme

Investing
Put Your Money to Work for You

Activity

Open

Investing

Tips

1. Diversify — Manage risk by spreading assets across multiple types of investments. This strategy reduces the impact of economic market fluctuations.
2. Powerful — Compounding interest is interest on the initial principal sum resulting in greater accumulation of wealth over time.
3. Long-term — Long-term investment strategy factors may vary based on your goals. Investing is to set aside assets for more than 3 years with the objective to increase in value.