Financial Literacy During Uncertain Times

From our sense of security and wellbeing to canceled troop activities, graduations, and birthdays, the COVID-19 pandemic has affected all aspects of our lives. For so many of us, the ongoing uncertainty means having to navigate difficult situations. So this April—for Financial Literacy Month—we’ve partnered with Morgan Stanley’s Financial Advisors to answer a few of the questions you submitted on Facebook and Instagram. Check them out!


Thien Le
, Financial Advisor:

The first financial lesson is to learn how to set goals. Setting goals is a great way to determine what to save for and to stay focused on your financial objectives and your reasons for saving. Bucket each goal into short term, medium term, and long term. Short term could be buying a new car, while long term could be retirement; which it’s never too early to think about. Start saving now as soon as you have earned income from your part time job or when you begin to work full time. When my 16-year-old daughter got her first job as a math tutor, I opened a retirement account for her to encourage her to save a little each month. Lastly, don’t be afraid of investing, and learn how to do it. Staying focused and keeping money invested in the market can be rewarding over time, but it may require patience and a long investment horizon. With market volatility, people often panic and make irrational decisions, so it is important to review your goals and remain focused on your investment objectives.

Lisa Benton, Financial Advisor:

An emergency savings fund is money that you have set aside for unexpected life events, such as losing a job or paying for a broken-down car. It’s a good idea for everyone to create one. When you are first starting, aim to save a few hundred dollars in a separate savings account. A convenient way to do this is by establishing a direct deposit for your emergency savings account. This allows the funds to be transferred into your account automatically. The ultimate goal will be to save three to six months of your take-home pay as a cushion for life’s uncertainties. Remember that this can be done gradually as your cash flow allows. One of the best ways to be financially savvy is to plan and that includes planning for the unexpected.

Kate Waters, Financial Advisor:

The goal should always be to have as little debt as possible, but there are certain instances where debt can be “good debt.” For instance, if you think you can get a better paying job by going to college or going for your master’s, medical, or law degree, then it might be smart to take on a student loan if you can’t afford it all on your own. This also holds true for buying a home. In both instances, you need to understand how long it will take to pay off and to make sure there is potential for a positive longer-term return on your investment. You also need to make sure the additional expense of the loan fits within your budget and be prudent about paying it down. By being diligent about your personal finances and responsible about paying down debt, you can be well on your way to being debt-free!

To help build girls’ confidence, Girl Scouts has developed Financial Literacy badges that your girl can start earning today! The badge activities are based on real-life situations, such as budgeting and philanthropy, to give girls a deeper understanding of financial literacy power their future life success! You can also check out Girl Scouts at Home—our brand-new hub of online activities, including some for financial literacy!

Since 1912, we’ve built girls of courage, confidence, and character who make the world a better place.

Source: Financial Literacy During Uncertain Times