The Five Pillars of Personal Finance

The United Stated Department of the Treasury has proposed a set of financial core competencies that will be used to
establish a clear understanding about what all adults should know regarding the basic concepts of financial literacy. The
five core concept areas identified are:
• Earning
• Spending
• Saving
• Borrowing
• Protecting against risk
This session covers the basics (or essentials) of each area and describes practical skills needed to competently address (or
manage) their personal finances.

Workshop Objectives
At the end of this workshop, you will be able to:
• Understand your paycheck in detail, including its relation to benefits and taxes
• Develop a spending plan, track spending habits, develop a strategy to live within your means
• Define a personal savings plan, understand the applicability of different types of financial accounts, and the personal
financial risk associated with savings and investment vehicles
• Understand the cost of borrowing and how to secure the best types of credit for the need
• Recognize the need to protect against risk through appropriate insurance vehicles and how to protect your identity
against possible fraud and scams.