Did you know that April is Financial Literacy Month? In 2004, the United States began recognizing April as Financial Literacy Month in an effort to highlight the importance of financial literacy and educate Americans on how to establish and maintain healthy financial habits.
Financial Literacy Month can be viewed as both a celebration and a challenge. It is a reminder to reflect on your personal finances and money management skills and determine how you can improve them in the future. Whether you’re struggling with debt or blessed with wealth, there is always room for improvement.
Below we will define financial literacy, how to practice healthy financial habits, and how you can get financial help from a professional.
What is financial literacy?
Financial literacy is simply the ability to understand and properly apply financial management skills. It is key to learning how to save, earn, borrow, invest, and protect your money wisely. The goal of financial literacy is to become self-sufficient so that you can achieve financial stability.
If you are struggling with debt or recovering from bankruptcy, financial literacy is where your focus should be. Rather than harping on money mistakes or bad circumstances, shift your perspective to how you can learn from those mistakes and situations.
Becoming financially literate
While the concept of financial literacy is simple, achieving it is not always easy. Here are some simple steps to take during Financial Literacy Month:
- Commit to change: If you are ready to accept responsibility for changing your financial situation, you have to commit to change. Start by identifying your money weaknesses and determine how you can transform them into strengths.
- Check your credit: In case of errors and fraud, you should check your credit report at least once a year, and Financial Literacy Month is a great time to do it! Checking your credit report is a great way to assess your overall financial situation and clean up any errors on your report.
- Create a budget: Budgeting is a key concept of financial literacy and planning. Calculate your expenses, determine your income, and begin recording your expenses to track your progress.
- Set realistic financial goals: Financial goals often differ in the length of time needed to achieve them. Short-term goals are priorities that can be accomplished within two years while long-term goals may take several years to achieve. Be sure every goal has a specific purpose, a dollar amount that it will cost, and a realistic target date.
- Make a debt repayment plan: Becoming debt-free should be one of your financial goals. Determine a debt repayment plan that works for you, such as the Snowball Method, which focuses on paying off your smallest balances first.
- Consult a professional: Managing your finances can be challenging to tackle by yourself. Consider working with one or more financial professionals to accomplish financial literacy.
Tolar & Tolar Attorneys at Law are here to help
Are you burdened with unmanageable debt? The attorneys at Tolar & Tolar are here to help you get back on track. We can help you evaluate your finances, stop repossession, and get the interest rate down to a manageable amount. If necessary, we can help you file for Chapter 7 or Chapter 13 bankruptcy. Our goal is to give you a new and brighter economic outlook. Let our family help your family! Contact us today to set up your free consultation!