This article was written by Cori Burcham.
Whether you’re falling behind on credit card payments, saving for retirement or managing the rising cost of groceries, meeting the financial demands of daily life can often feel like you’re reacting to your personal finances rather than preparing for them. It’s never too late to build the skills necessary to take control of your financial future.
Kylee Holliday, instructional designer at the University of Delaware’s Center for Economic Education and Entrepreneurship (CEEE), helps educators teach financial literacy through the center’s new Personal Finance Classroom series. The six-session series, sponsored by YourMoney101 and the Delaware Council on Economic Education with financial support from Robinhood, recently helped 130 Delaware educators prepare to teach financial literacy ahead of the implementation of House Bill 203. Together, these educators serve 14,256 students across the state.
While the series is designed for educators, the financial literacy skills it covers are valuable for anyone looking to make more informed financial decisions.
“Our job is not to tell people exactly what financial choices to make. Our job is to give them the knowledge and skills they need to make informed decisions that will help them reach their goals,” said Holliday, who identified five essential skills for managing personal finances.
Budgeting
Although creating a monthly budget may initially feel restrictive, consistently tracking your income and expenses can give you the freedom to pursue major, long-term financial goals, from saving for a home to growing your wealth through investments.
“This is what I believe to be the single most important aspect of financial literacy. Without the knowledge of how to budget appropriately, it’s a lot more difficult to reach your goals in a lot of other areas of personal finance,” said Holliday.
“Use the 50/30/20 rule when it comes to budgeting: 50% of your income goes toward your needs, 30% to wants and extras and 20% into savings for retirement or emergency funds,” said Holliday.
Banking, saving and investing
An important aspect of personal finance is using the right tools. A checking account can help manage everyday expenses, while a savings account can hold discretionary and emergency funds. Money intended for long-term growth can be invested.
To get started and build the habit of saving, consider short-term, medium-term and long-term financial goals for the future.
“A very common mistake a lot of people make is waiting until they have ‘enough’ money to start saving or investing. It’s important that people understand that the habit of consistently saving and investing can be more important than the amount you’re able to put away,” said Holliday.
When it comes to investing, Holliday emphasizes three main points: start early, contribute regularly and refrain from withdrawing. These steps allow your investments time to potentially grow and benefit from compounding.
Credit
Credit can lead to better financial opportunities or an accumulation of debt. Because credit affects borrowing options for credit cards, loans and mortgages, understanding how to use it responsibly is essential.
“Between excessive credit card spending, large car loans and buying more house than they can afford, people can get into trouble fast,” said Holliday. Another potential risk involves buy now, pay later plans, which, according to the Federal Reserve’s Economic Well-Being Report, were used by 16% of adults in 2025. Of those users, 26% made late payments, potentially incurring additional fees and affecting their credit scores.
With this in mind, Holliday recommends understanding the true cost of borrowing, looking beyond the monthly payment and considering the interest rate, loan term, amount borrowed and total amount repaid.
“It’s always eye-opening to learn what a dream car or dream house would actually cost over time,” said Holliday.
Risk management
Even if you’ve taken measures to be financially responsible, unexpected events could affect your finances. To protect long-term financial goals, educate yourself about potential risks and protect yourself against them.
Phishing scams targeting personal information and savings remain a significant risk. According to the Federal Reserve’s Economic Well-Being of U.S. Households in 2025, 20% of adults experienced financial fraud or scams.
“There are a lot of scams and schemes that exist today to target individuals and their money. It’s important for people to stay educated on the most recent trends when it comes to fraud and identity theft to protect themselves,” said Holliday.
Another way to mitigate risk is through insurance. Paying a premium for homeowners, renters, automobile or life insurance can help protect you from having to cover the entire cost of an accident or unforeseen event. Holliday recommends understanding your policy coverage to know where you’re protected and where you need additional coverage.
Housing and transportation
Housing and transportation are among the largest expenses many people face, making decisions about renting, buying, leasing or financing especially important.
Although homeownership is often viewed as a milestone of adulthood, such a big financial commitment may not be the right choice for everyone. Holliday advises weighing the pros and cons of renting or buying and considering whether it’s financially viable.
“The rule of thumb when it comes to housing is that you should not spend more than 30% of your gross income on your rent or mortgage. This is a great starting point to determine what you can afford,” said Holliday, noting resources are available to calculate the monthly housing payment you can manage.
Before choosing a vehicle, Holliday recommends understanding leasing and financing a car. Leasing offers a new car every few years and less maintenance responsibility. Financing may mean higher monthly costs, but you own the car after the loan is paid off and could use it as an asset.
“By understanding which of these options works best for you, you can then make a sound decision that fits your financial goals,” said Holliday.
“These five skills are really at the heart of what students are expected to learn under the requirements created by HB 203. It requires students to complete a half-credit in financial literacy, with instruction that is aligned to Delaware’s financial literacy standards. Those standards were designed to prepare students to make the kinds of financial decisions they will encounter throughout their lives,” said Holliday.