The term “financial literacy” is all over the news these days as
the US starts to emerge from recent economic setbacks. But what
is “financial literacy,” exactly, and why is it being touted as
a solution? Financial literacy is loosely defined as the ability
to understand financial matters and to make sound economic
decisions for oneself. Balancing a checkbook, setting and
sticking to a budget, establishing an emergency fund, using
credit wisely, navigating the complex path to home ownership:
these are important skills that too many Americans may be
lacking. Educating ourselves and our children on financial
matters is a good first step to avoiding future economic crises,
yet recent studies indicate that traditional approaches to
teaching young people about money may not be doing the job. One
tool to building better financial literacy is right here in
Washington State: Credit University. Started in 2003 by Alicia
Diefenbach, founder of Consumer University, Credit University
brings financial information to high