Financial literacy is essential to managing money effectively. What's that phrase....
"If you give a man a fish he is hungry again in an hour. If you teach him to catch a fish you did him a good turn "
Whether you are feeding the homeless, mentoring teenagers, or cleaning for the elderly, there are two services as a nonprofit that your organization should always try to have available (or partner with a nonprofit that does).
1. Basic Needs
Food, shelter, transportation, and clothing
2. Financial Education
Skills that teach people to make smart decisions about their money
As nonprofits, our goal is not only to provide our clients with the necessities for them to survive, but also to help them reach a point where they no longer need our services. Financial literacy is typically not taught in schools, or even at home. Especially for low income individuals, information about money management is usually learned by observation and listening to family and friends. Without a formal financial education, our clients lack a solid foundation for success. You may not be surprised to know that:
Nearly half of Americans don’t expect to have enough money to retire comfortably
Credit card debt has reached its highest point ever
Forty percent of Americans can’t afford a $400 emergency expense
Fortunately, the FDIC offers a free financial education program, FDIC Money Smart, that ensures your clients can have the tools they need to succeed. FDIC Money Smart has an individualized program for each age group, from coloring books and money management games for Pre-K, to instructor led courses for ages 60+. The program includes a full curriculum, lesson plans, resources, and materials that anyone could use, whether they are a new or experienced instructor.
Click here to access FDIC Money Smart
Why do your clients need financial literacy?
Please share in the comments.
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This article is just for informational purposes. It is not intended to be legal advice. Check other sources, such as the IRS, and consult with legal counsel or an accountant.