Improving our Financial Literacy

Written By Liz Schartman

April is Financial Literacy Month…and we can all improve our application of sound financial practices. Our lives evolve and circumstances change, so how do we keep up?

Let’s start with the basics. What IS ‘financial literacy’? According to Wikipedia, “Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.” Without this fundamental knowledge, we find ourselves stumbling through life without a clear plan for our hard-earned money and how we are using this tool to reach our life’s goals.

Annuity.org provides some sobering statistics on the status of our savings here in the U.S.:

  • The average amount of personal savings dropped 15% from $73,100 in 2021 to $62,086 in 2022.

  • People ages 30 to 49 are the least likely to have emergency savings.

  • 60% of Americans don't have enough savings to cover a $500 or $1,000 unplanned expense.

  • 1 person out of every 5 people near retirement age has zero money saved.

As Alan Greenspan, American economist has stated, “The number one problem in today’s generation and economy is the lack of financial literacy.”

So how can we do better? A Financial Coach can help! A financial coach is a type of advisor who can help you reach your financial goals by teaching you money management skills, such as how to build savings, create a spending plan or pay down debt. A financial counselor can help you discover what drives your financial decisions, so you can create a healthier outlook that leads to better money practices. Look for an Accredited Financial Counselor®, a FINRA Professional Designation, here: AFCPE - Find an AFC®

And if this all seems too much and you or someone you know needs a trusted partner to handle day-to-day financial management, you can rely on a Daily Money Manager. Daily money managers (DMMs) help busy professionals, high net-worth individuals, seniors, and others, and offer services to ensure nothing falls through the cracks, including necessities like paying monthly bills, assisting with tax records, reconciling accounts, decoding medical bills, and negotiating with creditors. To find a DMM, head to the American Association of Daily Money Managers: AADMM - Find a DMM

Wishing you Financial Success! Please let me know how I may assist you!

Liz Schartman
Previous

Now, More than Ever…