Financial Literacy 101

Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.
 Albert Einstein

When we look specifically at the status of poverty-stricken Americans, the data indicates that the need for financial literacy is alarming. Many who fall into this description generally lack a working knowledge of personal money management concepts. For example, many Inner-City Americans experience the following:
Higher debt delinquencies than any other ethnic group Comparatively lower savings
A lower homeownership rate (only 45 percent own homes) A greater incidence of home foreclosure than any other ethnic group
A greater incidence of predatory lending practices
A greater incidence of higher cost auto/consumer loans

Based on data from a Federal Deposit Insurance Corporation survey, 55 percent are unbanked or underbanked (i.e., they do not have bank account or do not have the appropriate bank account) — more than any other group.
And according to data from, at the height of the subprime mortgage market, African-Americans had a greater share of such mortgage loans.

-This was excerpt from Theodore R. Daniels published in the Huffington Post


Financial literacy in the urban community

In an effort to combat the statistics and stereotypes listed above, as well as do my part to contribute to ending generational poverty, I put together a financial literacy course. As the theories and concepts of financial literacy are usually taught in the home this class is designed to break the cycle of bad spending habits and ill notions of the purpose of money. Instead of buying a $300 pair of Jordan’s how about we spend half of that and purchase 3 shares of Nike stock at $54/share and then purchase the sneakers with the dividends? Instead of finding ways to scam credit, how about you learn what a FICO score is, get a secured credit card and build your credit to a 720 before you leave school. How do I actually build my credit up from a card, to a car, to a condo, to a house, to an SBA Loan? These are the concepts (and much more) I’d like to explore in the Financial literacy class.

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