The Framework

The Framework for Building Your Financial House is a graphic representation of the key financial elements or "blocks" needed to build your ‘financial house.’ These seven concepts are adapted from the Financial Literacy and Economic Commission’s core competencies of: earning/ income, spending, saving and investing, borrowing and protecting.  The framework not only provides the knowledge (Tools and Materials) we should have in each category but the actions (Construction) we should do as well.  Click on the framework to download as a PDF or click here to see if you have what you need to build yours.

Building a financial house is just like building a physical house.

1. A well-built financial house starts with a strong foundation of investing in yourself, by using the mortar of education, strengthening personal assets, recognizing opportunities, and setting realistic and achievable goals. 

2. The walls represent earnings, built up from the foundation and maximized by utilizing all available resources, directing payroll deductions, and choosing the right employee benefits.

3. Spend sensibly to fill your home with the things you need and keep it in order; overspending can result in both physical and financial chaos. Map your money and manage cash with banking tools to stay in control.

4. Checking the insulation can minimize a house's hidden heat loss, just as checking taxes can minimize dollars lost to overlooked deductions and credits.

5. Much like adding an extra room in the attic, you can expand your financial house by making your money work for you through saving, investing, and monitoring what you own. 

6. Just as the roof protects your physical house, protect your financial potential by having a cash savings for emergencies, managing risks with the right insurance, and being an informed consumer.

7. Finally, only borrow to buy assets that will grow and feed your financial future, like the seeds of a fruit tree. Borrowing in excess, similar to overwatering a seedling, can slow your financial growth, weigh it down, or drown it out.