Did you know that there is a National Financial Literacy Month?? Well, there is! The powers that be have selected April to be the Financial Literacy Month. Why April rather than July probably goes to the fact that so many people are acutely aware of their financial situation as they write out a check to the IRS. So, what is financial literacy and how does one become more financially literate?
Financial literacy is about taking control of your finances by fully understanding the impact of your spending, saving and debt obligations on your financial well-being. It is about making well-informed purchasing decisions and understanding the difference between wants and needs. A financial literate individual understands the importance of saving for the long-term. They are committed to the budget that they created, which includes saving for specific large purchases, as well as longer-term financial goals such as a comfortable retirement.
Financial literacy involves understanding the pros and cons of debt and being proactive about managing one’s debt obligations. A financial literate person knows the importance of maintaining a good credit score and gets a copy of their free credit report annually at www.annualcreditreport.com. Financial literacy is about recognizing when you have a problem managing your debt and getting assistance to help you manage the situation.
Financial literacy is also about communicating openly with your significant other about financial matters. It is about teaching your children good financial habits such as saving for big purchases, starting a retirement account early and not getting in over one’s head in debt.
So, now that you know what financial literacy is, go to www.financialliteracymonth.com to see what tools and information they have to help you be more financially literate.Tagged with: communication • finances • Mindfulness • Money and Finances