The Five factors of Financial Literacy

And what they mean to you!


April is financial literacy month! Here at New Dimensions FCU, our mission is to increase financial education for our members and community, including our local schools. Financial education is an integral part of learning that, for many, was not taught while in high school. According to, “Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning.” This has meant, for many people, that they had to learn about finances through trial and error.


There are five primary factors of financial literacy.


Earn: Income brought in during a set period can be daily, weekly, or monthly. All income earned within your set income timeframe (most people choose to budget monthly) should be accounted for so you have the money when you sit down to pay your bills.  


Spend: Where do you spend your money? By tracking your spending, you will get a complete picture of where your money is spent. We encourage tracking both big and small expenses to be the most effective.


Save: Save your money! Try to put a set amount of money away each month in your savings account. You can also opt to put your money into a certificate of deposits, retirement account, or a club. Did you know that you will feel more motivated to save each month if you save with a purpose (for material items, vacations, concerts (experiences), or even unexpected emergencies)?


Borrow/Loans: Borrowing money is necessary at times. However, smart borrowing is essential. Search for low-interest rates to help reduce the overall cost of your repayment. 


Protect: Protect yourself financially! Starting with emergency savings for those unexpected occurrences, protect your identity from fraudsters, and don’t forget about insurance. Insurance is vital to cover those investments in your life, such as homes, cars, and other valuables. Remember that life insurance helps to protect loved ones.


Understanding these five financial factors can help to improve your financial literacy and set you up for financial freedom. Financial freedom can look different for each person because everyone has a different idea of freedom. Call me to find out what that means for you. You can email me at or contact me by calling (207) 660-6267.