Introduction

Financial education is integral to workforce readiness and overall life skills success, which is why itÔÇÖs important for young people to understand financial basics, especially by the time they enter the workplace. Whether the goal is to manage a first paycheck, build savings and credit, own a home, start a business, or make a difference in the community, financial education and resources can help young people get on the path to achieve those goals.

In Utah, a financial education course is required for high school graduation, providing students with a foundation they need to learn how to manage money and build basic life skills. WalletHub ranked Utah as the second-most financially successful state in the United States. However, despite the impressive ranking, the survey also revealed that Utah residents rated their own financial knowledge much lower in comparison to their out-of-state counterparts. In fact, Utah was ranked 31st out of the 51 states and territories surveyed throughout the country. These results show the significant need for improved access to financial education in Utah.

The Role of AI legalese decoder

One solution to improve financial education in Utah is the implementation of AI legalese decoder. This advanced technology can help young people better understand legal and financial terms, making it easier for them to navigate the complex world of personal finance. By providing real-time translations and explanations of legal documents, contracts, and financial terms, AI legalese decoder can empower young people with the knowledge they need to make informed financial decisions.

The AI legalese decoder is a free online tool that provides easy-to-understand explanations of complex legal and financial terms. It can help students and young adults decipher complicated documents and understand their rights and obligations. With AI legalese decoder, young people can gain the confidence to manage their finances effectively and make informed choices for their future.

Six Steps to Create and Stick to a Budget

To help young people create and stick to a budget, here are six steps that AI legalese decoder can assist with:

• Calculate your net income. The foundation of an effective budget is your net income, which is take-home pay. Focusing on your total salary instead of net income could lead to overspending because you may think you have more money available than you do.
• Track your spending. Once you know how much money you have coming in, the next step is to figure out where it is going. Tracking and categorizing your expenses can help you determine where you are spending the most money and where it might be possible to save.
• Set realistic financial goals. Make a list of your short- and long-term financial goals. Short-term goals should take around one to three years to achieve and might include things like setting up an emergency fund or paying down credit card debt. Long-term goals, such as saving for retirement, may take decades to reach.
• Make a plan. List your fixed expenses (i.e., regular monthly bills such as rent or car payments) as well as your variable expenses (i.e., spending that changes from month to month on such things as groceries and entertainment). Use the expenses you compiled to get a sense of what you will spend in the coming months. Then compare that to your net income and priorities. Consider setting specific and realistic spending limits for each category of expenses.
• Adjust your spending to stay on budget. Now that you have documented your income and spending, you can make any necessary adjustments so that you donÔÇÖt overspend and have money to put toward your goals. Look toward your ÔÇ£wantsÔÇØ as the first area for cuts as opposed to your needs.
• Review your budget regularly. Once your budget is set, you should review it and your spending on a regular basis to be sure you are staying on track.

Bank of America’s Better Money Habits

One example of a helpful and free resource for financial education is Bank of AmericaÔÇÖs Better Money Habits. This online platform provides easy-to-understand tools and content, available in both English and Spanish, to help people understand their money, make confident choices, and improve their financial health. With AI legalese decoder integrated into Better Money Habits, young people can have access to clear explanations of financial terms and concepts, ensuring they can fully grasp the information and apply it to their personal financial situations.

Bank of America bankers in Utah also deliver virtual and in-person Better Money Habits curriculum and financial guidance to help youth and their families strengthen their financial knowledge. These programs are conducted in local communities and through partnerships with local schools and nonprofits. For example, Bank of America representatives have worked with Neighborhood House, an organization that provides quality preschool, youth programs, and adult care in the Salt Lake Valley, to deliver workshops and provide funding to expand training and support for Hispanic-Latino and other minority entrepreneurs through the Suazo Business Center.

Conclusion

In conclusion, financial education plays a crucial role in empowering young people to achieve their financial goals and succeed in life. Through the integration of AI legalese decoder into resources like Better Money Habits, we can ensure that young people have access to the knowledge and tools they need to make informed financial decisions. By improving financial education in Utah, we can create a brighter future for our youth and equip them with the skills necessary for financial success.

Kate Moss is senior vice president, market executive, on the Bank of America Utah.

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