At BIP Wealth, financial literacy is not about predicting markets or chasing the hottest trends. It’s about equipping people with the confidence to make informed decisions, especially during periods of uncertainty. Our latest financial literacy workshop focused on one idea: strong financial outcomes begin with understanding the fundamentals.

Led by CJ Young, CFP®, the session brought together young adults and college students who are navigating new financial responsibilities. Rather than offering rigid rules or one-size-fits-all advice, the financial literacy workshop centered on practical frameworks attendees could apply immediately and adapt over time.

What followed was a candid, grounded conversation about money rooted in clarity, preparation, and long-term financial wellness.

Below is a recap of the key topics and takeaways shared during the event.

Five Strategies for Financial Success

Five themes for improved financial literacy:

  1. Practical budgeting strategies that align with real life
  2. Thoughtful emergency fund planning for unexpected moments
  3. Responsible credit card tips that protect long-term progress
  4. Choosing when it is right for you to rent vs. buy a home
  5. Investing basics that emphasize time, discipline, and patience

These topics are very common to have questions about, and affect us in the present, thus setting us up for the future. But the thread that connects them all is that financial progress comes from strategic planning, not perfection.

Here are each of those themes broken down to help you build towards long-term financial wellness.

1. Mastering the 50/30/20 Budgeting Rule

Building a budget is a core element of financial responsibility. If nothing else, we must know where our money is going, and if necessary, what we can afford to drop to make sure that we spend less than we make. The most important thing to remember is that a budget isn’t about restricting yourself, but providing clarity about what’s ahead.

One of the more common budgeting strategies is the 50/30/20 rule. Here is what that looks like in practice:

  • Put 50% of your income toward needs such as housing, utilities, groceries, and insurance.
  • Put 30% toward wants like entertainment, dining, and discretionary spending.
  • Put 20% toward savings and investing.

With this type of budget, you can always be flexible with how much of your income you want to delegate to each tier. For example, you may want to adjust these percentages to reflect your personal priorities, variable income, or aggressive savings goals.

Overall, the 50/30/20 budget rule makes sure that your needs, savings, and investments come first, and what’s left over can support your wants.

If you’re looking to build or refine a budget, check out this 50/30/20 budget calculator.

2. Preparing for the Unexpected with Emergency Funds

Another important topic is emergency fund planning, particularly for financial stability and peace of mind.

An ideal emergency fund typically covers three to six months of essential expenses and is reserved for true emergencies, such as:

  • Job loss
  • Medical expenses
  • Car or home repairs
  • Temporary income disruptions

Effective emergency fund planning isn’t just about saving your money, but making sure that it’s accessible. While traditional savings accounts are common, options like high-yield savings accounts or money market funds may offer better interest while maintaining liquidity.

3. Credit Cards: Use Them, Don’t Let Them Use You

Credit card usage is often a major source of financial confusion for younger generations, especially when it comes to interest rates, minimum payments, and long-term costs.

When used responsibly, credit cards can support financial wellness by building credit and offering rewards. However, when misused, they can quietly erode your progress.

One of the most practical credit card tips is to treat your credit card like a debit card. Only spend money you already have and plan to pay off every single month.

Many cards carry interest rates above 20%, with some nearing 30%. Making only your minimum payment can not only stall paying off your card in full, but also cause you to pay even more in interest. This essentially leaves you with a higher balance than you started with.

If you’re looking for a tool to help with calculating your minimum payments, check out Bankrate’s Minimum Payment Calculator.

What NOT to Do with Credit Cards

Here are some common credit card mistakes to look out for:

  • Treating credit cards like short-term loans
  • Only paying the minimum payment
  • Carrying balances month after month
  • Buying things you can’t afford today
  • Maxing out credit limits

A Quick Word on Debt: The Good vs. The Bad

Not all debt is bad!

Mortgages, car loans, and credit cards are all common forms of debt that can help you prove you are financially responsible. That’s why paying in cash is not always the best option; responsible debt can actually help you build credit and flexibility.

Debt becomes a problem when:

  • You can’t pay it off quickly or consistently.
  • You rely on minimum payments.
  • You purchase things beyond your means.
  • Your credit score starts to decline due to missed payments or high utilization.

4. Renting Vs. Buying: Which Is Right for You?

The decision between buying and renting is often framed as a one-size-fits-all answer. In reality, it’s a personal choice that depends on timing, stability, and long-term financial wellness goals.

Rather than focusing on what you should do, it’s more helpful to understand when each option tends to make sense and how it aligns with your current season of life.

Why Buying May Make Sense

Buying a home can be a great option when you have clarity around your plans and are thinking long-term.

Buying is less about market timing and more about readiness and commitment. Here are things to consider about buying a home:

  • When you buy your home, it is an asset, not just a monthly expense.
  • Homeownership can support long-term goals like starting a family or establishing stability.
  • If you have a clear picture of what the next 5–10+ years may look like, buying often aligns well.
  • Over time, owning a home can contribute to net worth and long-term financial confidence.

Why Renting May Be the Better Option

Renting offers flexibility, which can be especially valuable during periods of change or uncertainty.

Renting may make more sense when:

  • You prefer not to be responsible for maintenance, repairs, or unexpected costs.
  • Your career, location, or personal plans may change in the near future.
  • You’re in a short-term living situation, such as college or relocating to a new city.
  • You don’t yet have clarity on what the next few years will look like.

5. Investing Basics: Ways to Invest Now

Knowing the investing basics is incredibly important for long-term planning. But the most important “basic” to understand is to start investing NOW!

By investing at a young age, there’s more time on your side. This means you can take on more risk than those who are nearing retirement.

Although all investing involves risk, a person who invests in index funds tracking the stock market has historically been rewarded over time. Since 1957, the S&P 500 has averaged an annual rate of return just over 10%.

Getting Started: Opening an Investment Account

For many people, investing begins with opening an account at a brokerage firm. These accounts allow you to invest in stocks, bonds, and index funds based on your goals and comfort with risk.

Common brokerage firms include:

  • Vanguard
  • Fidelity
  • Charles Schwab

These platforms provide tools and resources that help you get started without needing to manage everything on your own.

Understanding Employer-Sponsored Retirement Accounts

A 401(k) is a retirement account offered through an employer that allows employees to contribute a portion of their paycheck toward long-term savings. Many employers offer matching contributions, which can significantly accelerate retirement growth over time.

Contributions are typically automated, making it easier to invest consistently and build disciplined habits early in your career.

IRAs: Traditional vs. Roth

An Individual Retirement Account (IRA) is another common way to invest for retirement outside of an employer plan.

There are two primary types:

  1. Traditional IRA: Contributions may be tax-deductible, with taxes paid when funds are withdrawn in retirement
  2. Roth IRA: Contributions are made after taxes, but qualified withdrawals in retirement are tax-free

Choosing between the two often depends on income, tax considerations, and expectations about your future earnings.

The Rule of 72: Why Starting Early Matters

The Rule of 72 demonstrates how a young investor can build a disciplined approach to investing. By practicing this rule, you can grow your assets over a long period of time while putting a modest amount of money away each month, quarter, or year.

To use the Rule of 72: Divide 72 by your expected annual return. For example, at a 10% return, an investment could double in approximately 7.2 years.

If you’re interested in seeing how far your investments could go in preparation for retirement, check out this retirement calculator from Ramsey Solutions.

What Should Be Your Priorities?

Everything we have covered can be a lot to take in when you’re just getting started. Here are six things to prioritize now:

  1. Build out a budget to cover your monthly needs/wants.
  2. Pay off any high-interest debt.
  3. Build an emergency fund to protect yourself from surprise expenses.
  4. Take advantage of tax-free/tax-deferred investing (Rule of 72).
  5. Contribute to your 401(k) up to your employer’s match.
  6. Contribute to a Roth IRA (for those under age 50, up to $7,500 of earned income in 2026).

Financial Freedom Is for Everyone

The financial literacy workshop reinforced one of our core beliefs: long-term financial confidence is built through clarity, preparation, and intentional decision-making.

Unfortunately, there are no shortcuts or guarantees to your financial goals. But with strong budgeting strategies, thoughtful emergency fund planning, responsible credit card tips, and a clear understanding of investing basics, you can strengthen your overall financial wellness over time, leaving you with less stress in the future.

As Young shared throughout the session, financial literacy isn’t about knowing everything—it’s about knowing enough to take the next step with confidence.

Resources

Here are some great resources for you to take advantage of on your journey to financial wellness.

Books on Financial Literacy

Want to further your education in financial literacy? Here are some books we recommend.

Sources

Stanley, Thomas J, and William D Danko. The Millionaire Next Door. Taylor Trade Publishing, 1996.
Cousineau, Jake. How to Adult: Personal Finance for the Real World. Jake Cousineau, 2021.

“Emergency Fund: Why You Need One.” Vanguard, investor.vanguard.com/investor-resources-education/emergency-fund/why-you-need-one.

“Credit Card Minimum Payment Calculator.” Bankrate, www.bankrate.com/credit-cards/tools/minimum-payment-calculator/.

“The Rewarding Distribution of US Stock Market Returns.” Dimensional Fund Advisors, 4 Apr. 2025, www.dimensional.com/us-en/insights.

“Retirement Calculator.” Ramsey Solutions, www.ramseysolutions.com/retirement/retirement-calculator?srsltid=AfmBOoqHZ5iI7ebCQ5OXR_B0xKKZtHyn8Dq9I7UcIfSaetiCaVjnxU3J.

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