Financial Literacy Training

You Could Give Up a Luxury This Giving Tuesday and Give Back Instead!

Giving Tuesday is entering its seventh year, and has become a great way to kickoff the charitable season. People tend to get overwhelmed by the holidays and Black Friday, so the hashtag #GivingTuesday was created as a reminder to support the idea of “giving back” and philanthropy in general. The power of social media has been the driving force behind Giving Tuesday, and has connected nonprofit organizations to giving people all over the world.

Nonprofit organizations rely on the kindness of the community in order to operate and help others. For instance, in 2018, because of your generosity, Catalyst Academy has spoken to over 1,200 individuals in group presentations. And we’ve provided over 50 families with individual coaching. Some of the groups that we’ve supported include career center training, social service organizations, churches, library programs, park and recreation departments, as well as various companies and their employees.

A lot of people think that one must have a large savings account or a bonus in their paycheck in order to donate to a cause; it’s simply not true. If you want to make an impact on the world by giving a little extra to someone who needs it, you could give up a luxury for a day and donate instead! Luxuries are things that make us comfortable and happy, but are unnecessary for survival. Parting with a luxury for a day is easy and giving back could make you feel even happier than enjoying the luxury!

This year, Giving Tuesday is on November 27th, and Catalyst Academy is asking that you give up a luxury for a day by selecting an option from our menu. Your kindness and thoughtful decision to donate will make it possible for us to help an individual, family, or group in need. We teach people to steer clear of things like becoming financial fragile or how to bounce back from it, avoiding bankruptcy, eviction, or overcoming something like an expensive health emergency. We’ve helped many people because you, and we’d like to continue helping many more. We are proud of our testimonials from real people who have utilized our services, and we can’t thank you enough for making it possible.

A Lesson in Financial Fragility

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A recent study by the National Endowment For Financial Education (NEFE), conducted by the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University, has discovered a serious financial related problem affecting millions of American citizens; it has found that in a sudden emergency, one in three people are unable to financially handle the situation. The term that has been coined to describe this dire situation is “financially fragile.”

Respondents to the survey were asked questions regarding financial preparedness and whether or not they were able to access and spend $2,000 within one month of being faced with an emergency. The analysis was conducted by using survey data along with discussion group findings. Billy Hensley, Ph.D., the senior director of of education at NEFE, said “if you’re getting money back from Uncle Sam this tax season, consider investing this windfall toward starting or growing an emergency savings fund.”

Researchers found three main reasons why financial fragility occurs in the first place:

  1. High Debt

  2. Lack of Assets

  3. Low Financial Literacy

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One may think that a higher income may shield an individual from becoming a victim of financial fragility, but this is not the case. According to the study, thirty percent of people who are suffering from financial fragility are in the middle class income bracket, and twenty percent had an annual income of $75-100k. And according to Annamaria Lusardi, Ph.D., academic director of GFLEC, “financial fragility does not mean simply lack of precautionary savings. Heavy indebtedness can also make individuals financially fragile.” If an individual has high debt, avoiding financial fragility is not as simple as increasing income or working on savings. An important goal toward becoming financially strong is to dodge uncontrollable debt, which can be done through financial literacy.

Financial literacy can help individuals focus on the skills and knowledge needed to make resourcefully informed decisions about managing money; it can also help to guide individuals by creating budgeting techniques and encouraging the smart use of funds such as tax returns and bonuses. Instructors of financial literacy courses can help people set realistic goals and act as a cheerleader in support of attaining them. A tax-exempt 501 (c) (3) approved nonprofit organization like Catalyst Academy is a great resource for financial literacy training because classes are offered for low and no cost! With tax season coming up fast and New Year’s resolutions right around the corner, adding financial literacy training to your schedule may be just the thing you need to avoid becoming financially fragile. Click here for more information on services. Financial freedom is right around the corner!