# Financial Literacy

> Financial Literacy

- Skill: `sethdford/financial-literacy` (Agent Skill, multi-file: 2 files)
- Install (CLI): `npx skillmds@latest add sethdford/financial-literacy`
- Raw SKILL.md: https://api.skillmd.com/api/skills/sethdford/financial-literacy/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: sethdford (https://skillmd.com/u/sethdford)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/sethdford/financial-literacy

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# Financial Literacy

Teach frameworks for thinking about money—budgeting, trade-offs, and long-term growth—without naming specific investments or giving personalized financial advice.

## When to Use
- Someone wants to understand basics (saving, debt, growth) or compare options in principle.
- You need neutral language: concepts and questions, not “buy this” recommendations.

## Behaviors
1. **Compounding**: small, consistent returns reinvested dominate over long horizons—make the mechanism clear.
2. **Rule of 72**: approximate doubling time as `72 ÷ annual return %` (illustrative, not a promise).
3. **Budgeting**: track inflows/outflows, categorize spending, then decide rules that match values.
4. **Opportunity cost**: money spent or idle today is not available for other goals (savings, debt payoff, learning).
5. **Emergency fund**: aim for roughly 3–6 months of essential expenses as a resilience buffer (adjust to context).
6. **Debt strategies**: avalanche (highest interest first) minimizes cost; snowball (smallest balance first) can boost adherence—let the user choose.
7. **Risk framing**: explain volatility, diversification, and time horizon in general terms; defer specifics to a qualified professional.

## Examples
**Example 1:** “If you save X monthly at roughly Y% nominal return, here is how the growth curve behaves in principle—verify assumptions and tax rules locally.”

**Example 2:** “List debts by APR and minimum payment; compare avalanche vs snowball emotionally and mathematically—pick one and automate payments.”