Financial Literacy · Money 101
Money basics for every age, and a path to your first home
Simple habits for kids, teens and adults, plus where to get connected to first-time home buyer programs, counselors and lenders in Connecticut.
Nobody is born knowing how to budget, build credit or buy a house. The good news: a few basic habits go a long way, and Connecticut has free classes, savings programs and home buying help that many people never hear about. Start with the section that fits you, or share it with someone who could use it.
Money 101, by age
Tips you can use this week
Ages 4 to 12
Children
For parents, grandparents and teachers
- Use three jars: save, spend, share. Split allowance, birthday or chore money into each. Kids learn that money has more than one job.
- Talk about needs and wants. At the store, ask: "Do we need this, or do we want it?" There's no wrong answer, just a habit of thinking first.
- Let them wait for something. Saving for a toy over a few weeks teaches patience better than any lecture.
- Show how money grows. Open a kids' savings account at a local bank or credit union and look at the interest together each month.
- Play store or use coins. Counting change and making "purchases" builds math and money skills at the same time.
Connecticut helpBabies born on HUSKY since July 1, 2023, may have money set aside through CT Baby Bonds, which they can claim as young adults for school, a home, a business or retirement. The state's CHET 529 college savings plan also offers a starter deposit for newborns through CHET Baby Scholars.
Ages 13 to 19
Teens
First jobs, first accounts, first big decisions
- Open a checking and savings account. Many Connecticut banks and credit unions have no-fee accounts for students. Learn to check your balance in the app.
- Read your first pay stub. Find your gross pay, taxes taken out and take-home pay. Knowing the difference keeps budgets realistic.
- Pay yourself first. Move 10 to 20 percent of every paycheck into savings before you spend anything.
- Learn how credit works before you use it. A credit score affects car loans, apartments and even some jobs. Late payments stay on your report for years.
- Be careful with "buy now, pay later." Small payments add up fast, and missed ones can bring fees.
- Plan for school costs early. File the FAFSA for college or trade school aid, and compare grants and scholarships before taking loans.
- Watch for scams. Never share passwords, codes or bank details with someone who contacts you online, even if they say they're a friend or a company.
Try thisTrack every dollar you spend for one week in your phone's notes. Most people are surprised by what they find.
Ages 20 and up
Adults
Budgeting, credit, savings and protecting what you have
- Try the 50/30/20 budget. About 50 percent of take-home pay to needs, 30 percent to wants and 20 percent to savings and debt. Adjust to fit your life.
- Build an emergency fund. Start with $500, then work toward three to six months of expenses in a separate savings account.
- Check your credit for free. Get your reports from all three bureaus at AnnualCreditReport.com, the official free site. Dispute any errors.
- Pay down high-interest debt first. Credit cards usually cost the most. Pay at least the minimum on everything, then put extra toward the highest rate.
- Save for retirement, even a little. Take any employer match. If your job doesn't offer a plan, Connecticut's MyCTSavings program lets many private-sector workers save through payroll.
- Freeze your credit. It's free and stops thieves from opening accounts in your name. Lift it any time you apply for a loan.
- Get free tax help. Volunteer Income Tax Assistance (VITA) sites prepare returns for free for many households. Dial 211 in January to find one.
Free classesCT Money School offers free financial education workshops around the state, and HUD-approved housing counselors offer free or low-cost budget and credit coaching. See the list below.
First-time home buyers in Connecticut
Lower rates, down payment help, free coaching
You may count as a first-time buyer even if you owned a home before. Most programs use the federal definition: you haven't owned a home in the past three years. Many programs have income and purchase-price limits that vary by town, so check before you rule yourself out.
How it works, step by step
- Check your credit and budgetPull your free credit reports, fix errors and figure out a monthly payment you're comfortable with, including taxes and insurance.
- Take a homebuyer classMost down payment programs require a homebuyer education course. Many are online or offered by HUD-approved counselors.
- Talk to a housing counselorA free or low-cost counselor can review your finances, explain programs and help you get mortgage-ready.
- Get preapprovedApply with a lender that offers the program you want, such as a CHFA participating lender. Ask about down payment assistance at the same time.
- Shop, inspect, closeMake an offer, get a home inspection, and review your closing papers carefully before you sign.
State programs: CHFA
The Connecticut Housing Finance Authority (CHFA) is the state's main source of first-time home buyer help. CHFA doesn't lend to you directly: you apply through a participating bank, credit union or mortgage company. Find one on CHFA's website, or call 860-721-9501.
Lower-rate mortgage
CHFA Homebuyer Mortgage Program
Fixed-rate, 30-year mortgages for first-time buyers with income and purchase-price limits. Buyers in certain targeted areas don't have to be first-time buyers.
Down payment and closing costs
CHFA Down Payment Assistance Program (DAP)
A second loan, paired with a CHFA first mortgage, that covers your down payment and closing costs. Requires a homebuyer education class.
Forgivable assistance
Time To Own
A state-funded, interest-free down payment and closing cost loan that is forgiven over time if you stay in the home. Larger amounts are available in some towns. Funding opens in rounds, so ask your lender whether it's available now.
For specific buyers
Teachers, police, military and people with disabilities
CHFA has offered special rates and terms for teachers in certain school districts, police officers buying in the towns they serve, veterans and active-duty military, and buyers with disabilities through its Home of Your Own program. Ask about current options.
Federal and national low-down-payment loans
3.5% down
FHA loans
Backed by the federal government with more flexible credit rules. Offered by most banks and mortgage lenders.
No down payment
VA loans
For eligible veterans, service members and some surviving spouses. A strong option for military families around Groton and New London.
No down payment
USDA Rural Development loans
For moderate-income buyers in eligible rural areas, including many towns in eastern and northwestern Connecticut. Check an address on the USDA eligibility map.
3% down
Fannie Mae HomeReady and Freddie Mac Home Possible
Conventional loans for low- to moderate-income buyers, with lower mortgage insurance costs. Ask any lender.
Grant through your bank
FHLBank Boston Equity Builder
Grants for down payment and closing costs for income-eligible buyers, offered through participating member banks and credit unions. Ask your lender if it takes part.
City and town programs
Local down payment help
Some cities run their own programs, such as HOUSEHartford in Hartford and down payment and closing cost help in New Haven. Call your town or city's housing or community development office to ask what's offered.
Where to get connected
Free and low-cost help
Homebuyer education and housing counseling
- CHFAProgram details, income limits, homebuyer education options and the participating lender list. chfa.org · 860-721-9501
- Find a HUD-approved counselorSearch by town for free or low-cost counseling near you. CFPB counselor search
- Housing Education Resource Center, HartfordHomebuyer education and counseling for the Hartford area.
- Neighborhood Housing Services of New HavenHomebuyer classes, counseling and homeownership programs in Greater New Haven.
- Neighborhood Housing Services of WaterburyHomebuyer education and counseling in the Waterbury area.
- Housing Development Fund, StamfordCounseling and down payment assistance for buyers in Fairfield County.
- 211 ConnecticutDial 211 or visit 211ct.org to find counseling, financial classes and free tax help near you, including in eastern Connecticut.
- CT Department of BankingCheck that a lender or loan officer is licensed, and report scams. portal.ct.gov/dob
Banks and credit unions to call
By region
These Connecticut-based and regional lenders are a place to start your calls. Ask each one whether it offers CHFA loans, Time To Own, FHA, USDA, HomeReady or Home Possible, and grant programs like Equity Builder. Lender programs change, so always confirm with the lender and check CHFA's current participating lender list.
Eastern CT
- Chelsea Groton Bank
- Dime Bank, Norwich
- Jewett City Savings Bank
- Charter Oak Federal Credit Union, Waterford
- Navy Federal Credit Union, Groton (military families)
Central CT and Hartford area
- Liberty Bank, Middletown
- American Eagle Financial Credit Union, East Hartford
- Windsor Federal Savings
- Essex Savings Bank
Western CT and Naugatuck Valley
- Union Savings Bank, Danbury
- Ion Bank, Naugatuck
- Thomaston Savings Bank
Shoreline and Fairfield County
- Guilford Savings Bank
- Fairfield County Bank
- Bankwell
- Sikorsky Financial Credit Union, Stratford
Statewide and national
- Webster Bank
- Citizens Bank
- M&T Bank
- TD Bank
- Bank of America
LendersOffer first-time buyer programs in Connecticut? Get listed