Financial Literacy


 Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.  


 Credit is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date. 


 Money in coins or notes(treasury), as distinct from checks, money orders, or credit. A currency accepted for goods or services.


 Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor. Debt is a deferred payment, or series of payments, that is owed in the future, which is what differentiates it from an immediate purchase. 


 is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit. 

Retirement Plans

  • 401 K - offered by employer
  • Simple IRA(Individual Retirement Account)
  • Roth IRA
  • Health Savings account
  • Social Security(must consistently be employed)


CASH FLOW Quadrant

4 Ways to Produce Income


Self Employed - Doctor, Lawyer, Account, Real Estate Agent, Stockbroker

Big Business - Steve Jobs, Bill Gates, Mark Zuckerberg

Active Professional Investor - SharkTank is a perfect example 

Assets put money in your pocket. That is call cash flow not income.

Liabilities like a house(unless you use AirB&B) or car to a certain extent (unless you drive uber or lyft) takes money out your pocket. 

No Limits

60% will say to a child go to school and get a job. 40% will say go to university and become a doctor or a lawyer. Save money and invest in a retirement plan. These people will remain on the left side of the quadrant.  That's fine but they will be building poor debt.