By Mark Jackson, Christian Science Monitor
Just a decade ago, I would have considered myself financially ‘illiterate.’ I had no idea how finances worked, what a credit score was. I didn’t even have a debit card. But, after seeing how important money and personal finance was in your everyday life, I made it a goal to learn as much as I could, and started by opening my first bank account. Here are some essential skills that you need to know to consider yourself financially literate.
Banker counting money. (Photo by Chung Sung-Jun/Getty Images)
Banking
At a minimum, you should have a checking and savings account. Paychecks are largely deposited electronically nowadays, so if you have a full-time job you should already have one. Savings accounts are good for that emergency fund and for general savings as well. With a debit card and bank account, you’ll be able to pay bills online. I would recommend memorizing your bank account number and routing number.
Credit
You should understand how your credit score works. This is one of life’s big mysteries for some and the more you understand, the better rates you’ll receive when you ask for a loan or mortgage. It will also make you a more responsible spender. You should understand what APR rates are (and what the rates are on your credit cards), and what fees your credit card charges for foreign transactions and missing a payment.
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