Financial Literacy, Education Options, and Income Strategies

Scholarships

financial aid is awarded by merit or excellence in a variety of skills. (When a college coach pays for your schooling)

Financial Literacy

the knowledge and skillset are necessary to be an informed consumer and manage finances effectively. (creating a monthly budget)

Financial Security

ability to prepare for future needs and meet current expenses to live comfortably.( Having a emergency fund)

Postsecondary Education (PSE)

includes formal education received after graduating from high school. Certificates, Licenses, 2-year degrees, and college degrees are considered PSE. (earning a Bachelor of Science in Nursing from a four-year university)

College

an institution of higher education that awards degrees and certificates.(Harvard University)

Trade School

a type of higher learning school that focuses on job skill training for specific career fields rather than academics in liberal arts.(Electrician, HVAC Technician, Welder, Plumber)

Interships

temporary work programs in which a student can gain supervised practical experience in a job and career area.(a university student working in a marketing department at a digital agency to gain hands-on experience)

Career

an occupation undertaken for a significant period of a person's life and with opportunities for progress.(doctor, engineer, or fashion designer)

Interests

the things you like to do (particular activity like painting, or a specific subject such as history or science)

SMART Goals

Specific, Measurable, Attainable, Realistic, Timely(I will lose 10 pounds by exercising for 30 minutes three times a week for the next three months)

Specific

clearly defined or identified(education plan specific to each student's interests and abilities)

Measurable

make sure your goals and progress are measurable(volunteer 4 hours per month)

Time-Bound

containing a date when a goal will be reached(I'll start writing in the first week of July and finish my first draft by December)

Earned Income

money earned from working for pay(a salary or wages from a job)

Unearned Income

income received from sources other than employment(receiving dividends from stocks you own)

Certificate Of Deposit (CD)

a savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.(Traditional CDs)

Unsubsidized Loan

a non-need-based loan from the federal government the interest of which is paid for by the borrower.(private student loans)

Grants

a sum of money given by a certain organization, especially the government, for a certain reason or cause.(community development grants for local projects)

FAFSA

Free Application for Federal Student Aid.(a form you fill out each year to apply for financial aid for higher education)

Skills

the ability to do something well, usually gained through training or experience.(leadership, creativity, critical thinking, emotional intelligence, and an overall strong work ethic)

Dividends

earnings distributed to stockholders.(where shareholders receive money for their shares)

Tax

a required payment to a local, state, or national government.(include income, sales, property, payroll, and capital gains taxes)

Tax Brackets

income tax ranges from 10 to 35 percent based on income.(if half of your income is taxed at 10% and the other half at 12%)

Government Benefits

a payment made by a government agency or insurance company to qualifying persons in time of need.(Unemployment Insurance and SNAP)

Work-Study

a program that allows students to work part time while continuing their studies.(library assistants, research assistants, resident advisors, and campus tour guides)

Subsidized Loan

the government pays the interest on the loan while you're in school.(eligible undergraduate students who demonstrate financial need)

Budget

a plan for making and spending money.(often depends on a person's or organization's financial goals and how they want to manage their money)

Net Income

the difference between total revenue and total expenses when total revenue is greater.(a company's or individual's profit after all expenses and deductions are subtracted from their total revenue)

Opportunity cost

the most desirable alternative given up as the result of a decision.(investing money in stocks instead of saving it)