Financial Literacy Courses Teach Consumers How to Get Out of Debt

Getting into credit card debt is a common money mistake. When people lose their jobs or face unexpected expenses, it’s easy to get drawn into using credit cards as a bailout strategy. But carrying credit card balances month to month can really get you into trouble. If you reach that point, there are financial literacy courses online and at the community level that can help you learn how to get out of debt.

First, take a deep breath: being in debt is not the end of the world. As any good finance training courses will teach you, you just need to apply yourself a little bit in order to get out of the hole. The first and most important step is to prioritize your payments. Call all your credit card companies and find out the current interest rate you’re being charged. Ask them if they have any promotional rates you might qualify for.

Now make a list of all the credit cards you owe money and prioritize them with the highest-interest card at the top, then the next highest interest rate, and so on. This strategy was suggested in a financial literacy course developed by the National Financial Educators Council. Start right away to make larger payments on the highest-priority card, while making only the minimum payments on the rest of the credit cards. When the first card is paid off, go on to making large payments to the next one on your list.

It’s important to teach young people about the dangers of debt before they move out on their own. The NFEC talks about debt when they teach financial literacy for kids because a lot of credit card companies approach new college students with special offers. Promoting youth financial literacy must help them understand how to avoid both credit card and student loan debts they can’t afford.

Knowing how to handle credit cards wisely also forms a fundamental portion of the NFEC’s program for mature adults. Their retirement presentation helps retirees plan for a debt-free future.

Financial Literacy Courses

Parents and educators do not want to imagine a scenario where today’s youth are 40 and still buried in student debt.  Sadly, this is a reality for many families.  The NFEC suggests enrolling students in a financial education course to ensure a brighter future for your child and/or the youth you serve.

The focus of most schooling is to simply provide students the skills to get paid more; yet, no time is spent teaching them how to save and grow their money.  Essentially we are raising workers.  The lessons they learn in school are important however; equally important is the need to be financially prepared for when they step on a college campus or move out on their own.

In talking with parents that home school their children, many have an understanding that teaching money management lessons is important.  Unfortunately, many educators, parents and those that home school their children don’t know where to start.  Like many they never received financial literacy courses and don’t have the confidence to teach the lessons to their children.

By learning how to teach financial literacy and sharing that to the youth you serve – the money skills passed on can influence every area of their lives.  Over time, you’ll hear back from them—those calls, letters, and emails will start rolling in sharing their gratitude for helping them avoid common financial pitfalls.  The responses you receive will touch you and motivate you to share lessons with more youth around the world.

Learn more about the NFEC’s Money XLive personal finance course and other financial services that can help today’s youth avoid costly financial mistakes.  Just helping them avoid a small error could save them tens of thousands of dollars and reduce their stress levels significantly.