National Financial Literacy Month
April is recognized as National Financial Literacy Month, dedicated to raising awareness about the importance of financial education and empowering individuals with the knowledge and tools to assess, improve, and take control of their financial futures.
Budgeting
One of the most fundamental financial skills is budgeting. When establishing a financial plan, creating and understanding your budget is key. Even if your financial goal is to build an emergency fund or to lower debt, starting with your budget and tracking your income and expenses, will provide a clear picture of where your money is going. Assessing this information provides the opportunity to create a realistic plan with obtainable goals.
Saving
Building a savings goes hand in hand with financial literacy. Setting aside money is good to endure larger or unforeseen expenses – whether it’s a short-term goal like a new computer, a medical emergency, or an unexpected home repair. Make a goal to save at least 10-15% of your income and start by creating an emergency fund with 3-6 months of living expenses. If, after seriously scrutinizing your budget, you just don’t see room for saving, try committing to saving any financial windfalls—like bonuses and tax refunds—and any future salary increases.
7 Tips for Good Savings Habits
Credit
Credit is a powerful tool but if mismanaged it can lead to debt that becomes difficult to pay off. Understanding credit scores, interest rates, timing of payments, and the importance of paying off debt, can help you avoid credit card trouble.
Debt
Maybe getting out of debt is your financial goal. Regardless of how much you owe, it requires a concerted effort. Whether it’s credit card debt, student loan, auto loan, or a mortgage, you may want to consider this being your financial focus. Prioritizing paying off debts with high interest rates could make it easier to building savings.
Investing & Retirement
Financial literacy is not only about managing money but also planning for the future. Stocks, bonds, or mutual funds are all ways to invest your money with different levels of risk and return. Having your money work for you or planning for the future and retirement, investing can play a part in your financial plan.
If your employer offers a 401(k) plan, sign up as soon as you’re eligible, because even small amounts set aside while you’re young will add up to a significant nest egg decades from now. And, if your employer offers 401(k) matching funds, be sure to contribute enough of your earnings to max out the match. Otherwise, you’re leaving money on the table.
