Financial Literacy and Education Commission

The Financial Literacy and Education Commission was established under Title V of the Fair and Accurate Credit Transactions (FACT) Act of 2003 to improve the financial literacy and education of persons in the United States. The U.S. Small Business Administration (SBA) wishes to bring financial literacy not only to America as a whole, but specifically to small businesses and future entrepreneurs.  The commission was asked to develop a national financial education website (www.MyMoney.gov), along with a hotline (1-888-My Money) and a national strategy on financial education. It is chaired by the Secretary of the Treasury and comprises the heads of 21 federal entities, including SBA.

Money Smart for Small Business

If you want to start a business or learn how to better manage your business money, begin with Money Smart.  SBA and FDIC jointly provide an instructor-led business training curriculum, Money Smart for Small Business, for free. This curriculum is designed to provide introductory-style training for new and aspiring entrepreneurs. The 10 modules provide the most essential information on running a small business from a financial standpoint. In addition to grounding participants in the basics, the curriculum serves as a foundation for more advanced training and technical assistance.

The 10 Training Modules: Money Smart for Small Business

Money Smart is focused on the 10 modules listed below depending on the interests and knowledge level of the targeted audience. Each module consist of an instructor guide, participant guide, and PowerPoint slides, and it can take approximately one hour to teach each module.  If you interested in the Money Smart curriculum, please order here.

The 10 modules include:

1. Banking Services
   After completing this module, you will be able to:

• Identify the most common banking services for a small business, including business checking, payroll processing, business loan and others
• Evaluate your business and what banks have to offer to you
• Identify which banking services are the best for your business

2. Organizational Types
   After completing this module, you will be able to:

• Explain general characteristics, pros, and cons of these five common organizational types: Sole proprietor, Partnerships, Limited liability company(LLC), C-corporation and S-corporation
• Understanding what is the consideration when you decide your organization types
• Identify which organization types can benefit your business

3. Time Management
   After completing this module, you will be able to:

• Understand why time management is important to small business
• Apply some general time management practices, including: Pareto Analysis, ABC Method, Eisenhower method and POSEC method.

4. Financial Management
   After completing this module, you will be able to:

• Understand the concept of financial management and its importance
• Explain financial management practices, rules, and tools commonly available to small business
• Identify financing basics for small business, such as: start up financing, financing fixed asset, working capital

5. Record Keeping
   After completing this module, you will be able to:

• Explain record keeping basics- practices, rules, and tools
• Understand how and which records can benefit your business
• Identify software products relevant to business record keeping

6. Credit Reporting
   After completing this module, you will be able to:

• Understand the purpose for credit reporting and its benefits, risks, and responsibilities
• Explain how these credit reports works and Identify differences between business and consumer credit reports
• Understand how to improve your business’ credit.

7. Risk Management
   After completing this module, you will be able to:

• Identify the common risks relevant to a small business.
• Identify the common warning signs of risk for a small business.
• Implement, monitor, and evaluate a risk management plan for their business

8. Insurance
   After completing this module, you will be able to:

• Understand why insurance is needed for a small business
• Identify other types of insurance that a small business should consider
• Explain how to choose the insurance products that are best for your business.

9. Tax Planning and Reporting
   After completing this module, you will be able to:

• Understand the federal, state, and local tax reporting requirements of a small business
• Explain how to manage your tax obligations and establish proper accounts
• Understand how the forms and processes are used to pay business taxes

10. Selling a Small Business and Succession Planning
    After completing this module, you will be able to:

• Explain how to sell and close a business
• Understand benefits of creating a retirement plan