17 Personal Finance Concepts You Need to Understand in Order to be Financially Literate

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Being Financially Literate means having a basic grasp of a number of specific concepts. I cover all of these concepts in my most recent book, Effort-Less Wealth.

The purpose of this particular article is to give you a template or overview of those financial concepts I covered in my book.

In subsequent articles, I will peel the onion for each concept. When you are done, the compendium of these articles will give you knowledge of just about everything you need to know in order to be financially literate.

17 Finance concepts you need to know in order to be financially literate:

1. Bank Accounts/Banking – Checking Accounts, Savings Accounts, Money Market Accounts, CDs
2. Investment Accounts/Investing – Types of Investments, Types of Investment Accounts, How to Build Investment Wealth
3. Retirement Accounts – 401(k) Plans, 403(b) Plans, 457 Plans, IRAs, Annuities, Cash Surrender Value in Life Insurance Policies, Pensions
4. Personal Income Tax – Basic Concepts, Federal & State Income Tax
5. Home Ownership – Types of Traditional Mortgages, Home Equity Loans, Reverse Mortgages, Costs of Home Ownership, Tax Advantages of Home Ownership
6. Apartment Rentals – Tennant Obligations, When it Makes Sense to Rent vs. Own, Tennant Insurance
7. Social Security – Benefits According to Your Retirement Age, Spousal Benefits, Divorcee Benefits, Death of a Spouse/Former Spouse, Disability Benefits
8. Insurance – Life Insurance, Health Insurance, Homeowners Insurance, Auto Insurance, Tennant Insurance. Long Term Care, Disability Insurance, Comprehensive Insurance, Professional Liability Insurance
9. College Costs – Private vs. Public College Costs: Tuition, Fees, Books, Room & Board, Travel, Study Abroad
10. College Funding – 529 Plans, Roth IRAs, Home Equity Loans, Scholarships, Student Loans, Financial Aid
11. Automobiles – Lease vs. Buy, Auto Insurance, Repair Costs, Electric vs. Gas vs. Hybrid
12. Personal Living Expenses – Food, Clothing, Entertainment, Travel, Gifts
13. Family Finance – Having a Baby, Raising a Child
14. Getting Married – What to Expect, from Engagement to Wedding
15. Divorce – Costs of a Divorce and Aftermath
16. Funerals – Costs Associated with Burying a Loved One
17. Debt – Mortgages, Auto Loans, Student Loans, Credit Cards

Tom Corley

Tom Corley is an accountant, financial planner, public speaker, and author of the books “Effort-Less Wealth: Smart Money Habits At Every Stage of Your Life” and “RichKids: How to Raise Our Children to Be Happy and Successful in Life“.  Corley’s work has appeared on CNN, USA Today, The Huffington Post, SUCCESS Magazine, and many other media outlets and podcasts in the U.S. and 27 other countries. Tom is a frequent contributor to Business Insider and CNBC.