Financial Literacy
Essential concepts and terminology every person should know about money, credit, and financial institutions.
Read Our BlogCredit Scores
Understanding how credit scores work and how to improve them.
- Credit scores range from 300-850, with 700+ considered good
- Payment history is the most important factor (35%)
- Credit utilization should be kept below 30%
- Length of credit history and types of credit also matter
Interest Rates
How interest rates affect borrowing and saving decisions.
- Simple interest is calculated only on the principal
- Compound interest earns interest on interest over time
- APR includes interest rate plus additional fees
- Fixed rates stay the same, variable rates can change
Inflation
How rising prices affect your purchasing power over time.
- Inflation reduces the value of money over time
- Average historical inflation rate is about 3% per year
- Investments should aim to beat inflation to maintain purchasing power
- Fixed-rate debt becomes cheaper to repay during inflation
Financial Institutions
Understanding banks, credit unions, and other financial services.
- Banks are for-profit institutions offering various financial services
- Credit unions are member-owned and often offer better rates
- FDIC insurance protects deposits up to $250,000 per account
- Online banks often offer higher interest rates with lower fees