The Big 3 of Financial Literacy
Happy Financial Literacy Month!!! I pray you’re feeling all the financial love on social media, and I want to encourage you to be frugal and fiscally responsible. If you love the NBA, like me, or even more than me, like my husband, you know of the term “The Big 3”. It refers to what some would consider the best/most important three players on the team and seems to have now become a requirement for modern NBA teams. Think Michael Jordan, Scottie Pippen, and Dennis Rodman, or one of my old favorites: Kevin Garnett, Ray Allen, and Paul Pierce. My current favorite “Big 3” is Stephen Curry, Klay Thompson, and Draymond Green. I’m still sad about the breakup—don’t remind me. Each player brought (Klay)/brings (Steph and Dray) their own x-factor to the team, and you definitely noticed when one of them was missing. They literally won 4 NBA championships together and were all drafted by the Golden Warriors, meaning that they did not need to leave to win—unlike some people.
When it comes to Financial Literacy, there is another “Big 3” that takes the cake. Budgeting, Credit, and Taxes will forever be the foundation of finances upon which each other's fiscal skill is built. Budgeting might be a buzzword, but it is literally making a plan for your money and telling it what to do. Too often, money walks people around on a leash when it should be the other way around. Budgets make sure your money is obedient, knowing when to bark, knowing when to sit, and knowing when to roll over. Your credit simply answers the question of “Can I trust you to pay back what you’ve borrowed?” An 800 credit score says, “You can trust me to pay you back, so much so that you’re willing to throw your money at me before I ask.” A 400 credit score says, “I may or may not pay you back, but please charge me a high interest rate because of this uncertainty.” Taxes are a societal obligation that should improve the lives of communities, whether nationally, regionally, or locally. Jesus said to render to Caesar what is Caesar’s centuries ago, and today we’re still rendering Alexander Hamilton’s to the United States Treasury. And just like then, there are still hefty consequences when you don’t pay your taxes, like fines, garnishments, and even jail time.
If I could make a comparison, Steph would be budgeting, Klay would be credit, and Draymond would be taxes. Steph is pretty consistent when it comes to making shots. Whether from the free throw line, the three-point line, or half court, if you consistently work your budget, it will work for you. When Klay is hot, he’s hot, and when he’s not, he’s not. Please don’t remind me of him going 0/10 in the elimination game. I know, I know. When your credit is good, opportunities can be endless, but when it’s not, opportunities are predatory. Draymond is definitely your taxes. If you don’t pay the IRS, they just might choke you, stomp you in the chest, or elbow you in the head. But if you do your part, the tax code can definitely be a benefit to you. But when it comes to any “Big 3”, they all work better together.