Financial Foundations: 5 Key Habits for a Stronger Future
And no, you don’t need a finance degree to get this stuff down.
At New Dimensions Federal Credit Union, we’re all about helping our members (and the community) get money-savvy. Because let’s be honest: most of us weren’t exactly handed a financial playbook in high school.
According to Investopedia, “Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning.” Translation? No one’s born knowing how to crush a budget or decode interest rates—we’re all figuring it out. So let’s break down the 5 core money areas that make up financial literacy:
Earn: Know Where Your Money’s Coming From
This is your income—whether it’s from a job, side hustle, or unexpected windfall (hello, tax return). Step one to any money plan is knowing how much you’ve got to work with. Once you know what’s coming in, you can start making intentional choices with it.
Spend: Track It Before You Regret It
Where’s your money actually going? If you don’t know, it’s time to track it. Most people think of the big stuff—like rent and groceries—but the little things (looking at you, $7 lattes) add up fast. Awareness is everything.
Save: Pay Yourself First
Saving isn’t what’s left over—it’s what you prioritize. Whether you’re saving for a new car, a rainy day, or retirement, it’s important to have specific goals. Tools like savings accounts, CDs, or IRAs can help you grow that stash faster.
Borrow: Be Smart About It
Sometimes borrowing is necessary—like for a car, home, or big life event. Just make sure you’re doing it wisely. Look for loans with low interest rates and always understand the full cost of borrowing. Pro tip: just because you can borrow it, doesn’t mean you should.
Protect: Keep What You’ve Built
You worked hard for it—now protect it. Start with an emergency fund. Add in identity theft protection, home/renters insurance, and yes, life insurance too (even if you think you’re too young). This is how you future-proof your finances.
The Bottom Line:
Financial literacy is freedom. It gives you control, confidence, and peace of mind. And guess what? You’re already on the path—just by reading this. Need help making a plan? That’s what we’re here for!
Contact Carrielyn Reynolds at creynolds@newdimensionsfcu.com or (207) 660-6267 for more information or to set up an appointment.