When it comes to finances, there are a lot of big scary financial words that are not easy to understand. You may not know what your credit score is, or what it means to default on your loans. It’s easy to make mistakes with your finances when you don’t understand them. That’s why nationwide, we dedicate the month of April as Financial Literacy Month. Let’s make
learning Finances Fun.
The focus of Financial Literacy Month is to make sure that people understand basic things about their finances, and provide resources for financial questions. Ideally, both young and older people will benefit from an education in money matters.
Many people today do not understand their finances, and the importance to setting goals and budgeting. Part of the problem with understanding finances is that many people do not learn about money at a young age. This translates to misunderstanding finances later in life.
In an article from Forbes.com, author Tim Maurer says that people often shy away from terms like “financial literacy,” and we should use more positive statements like “financial awareness” and “financial wellness.” It is important to think positively about learning about finance. This begins with the belief that a basic financial education will benefit you in the long run.
You don’t have to have a degree in finances to understand how credit works. You can balance your checkbook without being an accountant. If you start with easy things like these, you can work your way up to more difficult topics. For the things that you may not understand, there are plenty of resources out there. It is never to late to start understanding your finances.
To start, think about setting goals. Everyone, no matter their age, has goals. For children, one goal might be to save up money to buy a new toy or video game. As you get older, your goals might revert to saving up money for a car, for a house, or for retirement. Whatever goals you set, it is important to have something to work for or save for.
Another simple way to take control of your finances is to record your daily spending. Whether you’re just starting college or looking forward to retirement, it’s never too early or too late to start recording your spending habits. Having a visual of how much you spend will give you a better idea about what you spend, and will help you when you form a budget.
If you have questions, find webinars. There are hundreds of web seminars available for hundreds of different topics, and financial and economic topics are included. For example, the National Financial Educator’s Council offers many different resources, such as training for educators and seminars about budgeting, loans and debt, and careers.
Both adults and children should take advantage of the education opportunities offered by finance seminars. In steps the Council for Economic Education. This program trains teachers in schools about financial literacy, so that they can in turn train their students about the importance of understanding financial strategies for when they move out into the real world.
The resources are endless, and it is important to look at Financial Literacy Month as an opportunity to re-evaluate the way you think about your money. Anyone can learn about their finances, and it will benefit your money-making decisions later on in life. It is time to make learning finances fun in your life.
Written by Stephanie Black, Journalist for Money On Your Terms