April is National Financial Literacy Month, which is an excellent opportunity to review and grow financial awareness. You are not alone if you believe your financial literacy is lacking; if you are financially literate, do not take it for granted!
Here Are Some Financial Literacy Facts!
Few people have a financial education.
In most economies around the world, men are taught more about basic financial concepts than women.
Loan terms are not always fully understood.
Financial literacy classes are lacking in schools.
Personal finance skills are important for retirement planning.
Half of Americans have less than one month's income saved for a rainy day, and one in three say they cannot cover a $400 emergency.
Half of adults say they do not have a spending plan.
Sixty percent of Americans say they find it difficult to meet monthly expenses.
How to Advance Financial Literacy
Increase Awareness
Recent economic times have been tough and caused some negative impacts to personal finances, making Financial Literacy Month even more essential. We must continue to increase awareness about the importance of financial literacy.
Offer Financial Education in Schools
A financially educated younger population will make more informed money management decisions.
Make a Personal Vow to Review Your Personal Finances
Get creative and think about ways you can commit to a personalized spending plan and financial improvements. Work toward a financial goal!
A Super Saver’s Advice!
How can you save a portion of your income but also live a more financially comfortable life? Super Savers, like many others, have mortgages or rent, pay for school, and take vacations. They also have financial peace of mind because they have grown a sizable cushion of savings and investments. Some Super Savers' secrets include the following:
Set achievable goals for your savings and investments with realistic deadlines.
Shop with purpose by asking yourself, "Do I really need it?" to avoid spontaneous purchases, which account for 40% of all purchases.
Choose to wait two months before purchasing anything expensive to see if the "need" is still present. To avoid spending money you don't have, avoid debt (such as installment loans for computers, vehicles, TVs, cell phones, electronics, and furniture) and using credit cards.
Reduce spending on expensive items such as homes (not the biggest in the neighborhood) and vehicles (drive older ones) and enjoy creative budget-friendly vacations.
Choose to spend wisely on daily expenses by comparison shopping, clipping and using coupons, purchasing cheaper discounted goods and services, and practicing careful planning when it comes to entertainment and expenses.
Set up automatic transfers from a checking account to a savings account, a 529 plan for college savings, a retirement account like Roth IRA, and/or a high-yield savings account, and make the maximum contribution to your employer's 401(k) retirement plan. Save more as your income grows.