April is Financial Literacy Month - Can You Make It Rain?
Education, including financial literacy, ends when you move the tassel from one side of your mortarboard hat to the other. Right? If you’re reading this, then obviously not for you.
So ask yourself, how have you improved your financial literacy lately? Do you keep a budget? Do your friends contribute regularly to a retirement fund? Does your brother live hand-to-mouth? Do you know the difference between simple and compound interest? What is the best long-term investment? Is it stocks? Gold?
April is National Financial Literacy Month – an entire 30 days during which we can examine and reflect on our own financial health, knowledge, and habits.
Financial literacy is, in essence, having an understanding of the financial issues that everyone has to deal with — bills, savings, investing, repaying debts, retirement, etc.
Our finances touch every aspect of our lives, and yet, if the statistics on it are any indication, the United States seems woefully undereducated when it comes to financial literacy.
The State of the Union's Financial Literacy
In fact, more than half of teens want more education when it comes to handling money, budgeting, how to handle bank accounts, and investing. And most adults agree with them. Forbes reported that 85% of parents in the US believe that in order to earn a high school diploma, students should be required to complete a financial literacy course.
And yet only around a third of parents regularly talk to their kids about money. So, kids are generally getting a rotten start in terms of financial know-how.
But adults definitely learn how to budget, save for retirement and invest, right?
Sadly, the numbers here aren’t much better.
Only around 40% of adult Americans track spending and use a budget
More than 75% live paycheck-to-paycheck
50% or so keep three months expenses in an emergency fund
25% have no savings at all
More than 33% worry they won’t save enough to retire
Nearly half of adults don’t have enough money saved for emergencies
No wonder someone saw the need for an entire month dedicated to raising financial literacy!
Who are we kidding about our financial literacy? Not ourselves.
At least we overwhelmingly own our deficit of financial knowledge. If this was one of those assignments in school where you give yourself a grade, two out of five adults would give themselves a “C” or lower.
But if we take the time to understand our finances, learn how to better manage money, and how to be scrappy with our resources, most people can improve their finances.
So, when did your financial education begin? And as a lifelong learner, what are you doing to continue expanding your knowledge?
Here are some suggestions:
Read books on personal finance — even 15 minutes a day adds up.
Read blogs and magazines — there’s a ton of free, byte-sized content out there.
Listen to money podcasts — great for on-the-go learning.
Learn more about the history of podcasting and how media affects financial knowledge.
Take a financial literacy course — this investment offers lifelong returns.
Start saving — even small amounts build powerful habits.
Take a deep dive into your credit score — and improve it.
Meet with a financial advisor — you don’t have to do this alone.
Want some company on your adventure in financial literacy? Let us be your guide on the side. Connect with our experts by scheduling a no-obligation call. At NEST, we are passionate about helping you achieve your financial goals, and about demystifying financial concepts so that you can make smart decisions for your financial future. We work with clients in Austin, the Hill Country, and around the country.
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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.