At Money Vehicle, we like to use the phrase “the language of money.” Another way of putting that? Financially literate, or financial fluency. In other words, are you fluent in the language of finance?
Yes, it’s all similar. But overall, learning to speak the actual “language of money” and becoming truly financially literate or achieving a level of financial fluency. Let’s be honest, too: Watching CNBC or Bloomberg on TV may feel like trying to read hieroglyphics. There are stock quotes crawling across the screen, analysts discussing high-level financial topics (rife with jargon, naturally), and constant updates regarding the markets, government data, and much more.
It’s overwhelming. That’s why, at Money Vehicle, we feel it’s productive to actually learn to read and speak the language of money at a basic level — much like a student would learn to read at a young age. And just like learning to read, financial fluency is full of confusing and interchangeable terms.
For instance, you may have struggled to learn the differences between “there,” “their,” and “they’re” when you were learning to read. There are similar pitfalls in the financial world. “Value,” for instance, could mean a number of things, depending on the context. So could “interest,” “credit,” and many other terms.
Again, without a baseline understanding of financial terms, and some level of understanding of the context in which they’re used, discussing money or finance can be overwhelming, confusing, and ultimately, a total turn-off. That’s not what we’re aiming for, of course. And why we think that students should aim to achieve a level of financial fluency that may surpass that of their parents or other people in their lives.
The Path to Financial Fluency
The big question, though, is this: How do you do it? How do you actually achieve a level of financial fluency?
It’s not necessarily easy, but it’s not terribly difficult, either. The Money Vehicle course is designed to provide a path for students to follow to get there, too.
The Money Vehicle course’s path to financial fluency and financial literacy — when focused on high school students — incorporates ten key modules: Goal setting, time value of money, cash management, bank accounts, credit cards, investing, insurance, cyber-security, taxes, and investment accounts. Within each of those individual modules are numerous other “pit stops” in which students will further their understanding of each overarching topic, gaining a rich, clear, and full education.
And, as we like to harp on in these blog posts, Money Vehicle’s core tenets are as follows:
- Setting monthly and yearly Personal Finance Goals
- Quantifying how much their individual plan can put toward the future
- Setting up a Cash Management system
- Opening foundational bank accounts
- Starting credit history with a credit card
- Identifying a first investment through Index Funds
- Diagnosing ways to confirm coverage and lower your insurance costs
- Implement proactive ways to prevent cyber-attacks
- Synthesize the transaction from Gross to Net income and quantify Federal Income Tax liability
- Open a Roth IRA
With that, Money Vehicle’s team has laid out a path to financial fluency and financial literacy. Again — it’ll require some investment on a student’s part. Nothing is ever easy. But the path is there for those who want it!
Check out the Money Vehicle textbook — you can find it here on Amazon. And if youlike what you see, you can get more content sent directly to your inbox! Sign up for the Money Vehicle Movement Newsletter!
And check out our white paper: “Strategies for Increasing Financial Literacy Rates Among High School and College Students”
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