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Financial Literacy 101: Helping Families In Alabama Thrive

Financial Literacy 101: Helping Families in Alabama Thrive

Financial literacy is integral to your future prosperity. It can be defined as a competent understanding of financial concepts, including, but far from limited to:

  • Saving money
  • Debt management
  • Understanding and use of credit and debt
  • Investing tools such as stocks, bonds, and other assets

This is just the beginning. From FICO scores to owning your first home, Troy Bank & Trust wants to help customers understand what’s best for you, financially, by giving you the tools to succeed.

Intro to Financial Literacy

Financial literacy begins with a foundational understanding of money, how it works, and how to make it work for you. 

Americans, though far ahead of the pack compared to the rest of the world, still have a great deal of room to improve. Participants in the TIAA Institute-Global Financial Literacy Excellence Center (GFLEC) Personal Finance Index scored only 52% overall.

Here at TB&T, we look forward to helping our customers be the most financially capable Americans. 

Who Is Financially Literate?

To be financially literate, you must gain control over your finances in order to wield money as a tool that helps you build a more contented life. Furthermore, financial literacy enables you to weather life’s economic storms, whether personal–e.g. A job loss–or global–an economic downturn.

Financial literacy instills in you the ability to allocate your money into many areas at the same time. These areas include:

  • Expenses
  • Savings
  • Debt servicing
  • Everyday costs

Financial literacy also enables you to understand the best financial decisions for you across a wide set of challenges. These scenarios include:

  • Buying a house
  • Buying a car
  • Taking out a business loan
  • Investing in stocks and bonds

The financially literate individual can take on any financial challenge and make the choice that offers you the best probability for success or positive outcomes. These abilities allow you to make progress regardless of your current economic status. In this sense, financial literacy can be a matter of:

  • Adding to your retirement savings
  • Managing an emergency fund
  • Balancing the interest payments on debt vs paying it off
  • Understanding and utilizing your credit score
  • Investing in your 401K and IRA

Financial Literacy Looks Different for Everyone

Here at Troy Bank & Trust, we understand that financial literacy looks different for everyone. Even those making six figures a year can have a lot of trouble managing their finances. That’s one of the reasons so many Americans are in debt. No matter how much money you make, without understanding how to use it, you’ll see it deplete rapidly!

For more information about financial literacy, give visit us online or give us a call today to talk to one of our experts here at Troy Bank & Trust. Your success is our success. Together, we can build a financial plan that allows you to retire and live off your savings. 

Troy Bank & Trust is Alabama’s leading local independent bank

As a local independent bank, we provide every service that bigger banks provide—only more.

On top of the modern services such as mobile banking and instant transfers, Troy Bank & Trust offers customized service that recognizes your existence as a unique entity. We believe in the little things, such as answering phone calls without exorbitant wait times and providing services such as personal and business loans—or, perhaps these things aren’t so little after all. Find out

more by visiting Troy Bank & Trust here, or reach out to us by phone at 334-566-4000 or 888-258-8769.