In my storyboard I will include information on how to be able to understand finances or money. This will include a few samples on how we can save money and use it wisely.
Financial Literacy:The meaning of financial literacy is the ability to understandhow money works. We need to be able to understand how to save money, invest and especially how to make money.
In the next three boxes I will be explaining the important elements about financial literacy. We need to learn about the important ways on how to make money and be able to manage it to live a comfortable life. If we are not able to understand how money works it will not matter how much money we make if we spend more than we make and do not invest it.
Key Components of Financial LiteracyKeep a Budget=We need to be able to create a budget either daily, weekly, or monthly. We also need to maintain the balance of our budget in order to stay within our expectations.For example: If I make $700 a week, I need to know how much groceries I can afford to buy without getting out of my food budget. Also, I need to consider how much gas my car uses to go back and forth to work. Bills and activities I have to include in my budget also. If I spend more than what I make, then I am broke.
Interest RatesInterest rates is the amount of additional money that we have to pay when money is loaned, deposited or borrowed from an institution for example a bank, credit card, or student loans. This percentage is calculated by the amount that is being loaned over a period of time. Example: A bank will not want to lend me money for a house if I have accounts in collections, because they will see I am unable to pay what I owe. Or if they do decide to lend me money it will be at a very high interest rate.
DIVIDENDSDividends is defined as distributing money or profits made to people that have invested or shareholders in a business or a stock.EXAMPLE: A few years ago my mother invested in stocks with Amazon and Uber. Since then the companies have grown and now the ability to own a stock is more expensive than when she got them. So, her shareholding increases quarterly because she invested and the companies share a profit with her.