In case you didn’t know every April (since 2004) has been declared National Financial Literacy Month in the United States. President Obama also declared this April “Financial Capability Month."
In honor of this month I wanted to talk a little bit about the importance of financial literacy. Financial literacy is, simply put, the ability to understand finance. Personal finance is a fundamental part of our society, yet despite this fact, the topic isn’t always taught to our youth! Financial literacy is especially important for the youth of our nations. If managing finances is not taught early, the fundamentals will not exist when those youth grow up and try to become independent. The basic principles of financial management are necessary practices throughout life. Not only should you be teaching your children about finances, you should be setting an example on how to handle finances, budgeting and money by practicing yourself.
So to celebrate financial literacy month begin some good financial habits today! Start with balancing your check book, check your credit report, create and follow a budget, and start taking steps to get out (and stay out) of debt! Try teaching your children some good money management skills too! Check out my blog post “Break the cycle: Teach Your Children Money Management at an Early Age” for some tips on how to instill good financial habits in your children, grandchildren, nieces/nephews or any other youngsters! Also, April 23rd is National Teach Children to Save Day, so make sure to mark your calendar and think of a special way to (spend) ‘save’ the holiday with your younger family and friends!
With all the new technologies present today, it is easier than ever to keep track of your finances as well as budget effectively and stay debt free! If you aren’t keeping track of your personal finances, use financial literacy month (and spring cleaning) as the motivation to get started! Here’s a short video clip of me discussing financial literacy! https://www.youtube.com/watch?v=BgIVZRa6_aQ
