April is Financial Literacy Month


April is Financial Literacy Month

Financial literacy is understanding and using financial skills, including responsible money management, budgeting, saving, and investing for the future. Let's look deeper at Financial Literacy Month and some ways to become more financially literate so you can manage your money responsibly all year. 

The History of Financial Literacy Month 

In 2000, the Jump$tart Coalition began promoting April as the Financial Literacy for Youth Month. In 2003, the United States Senate designated April as Financial Literacy for Youth Month, which was shortened to simply Financial Literacy Month. 

President George W. Bush declared April National Financial Literacy Month the following year. Since then, Financial Literacy Month has been observed annually, with various organizations and institutions offering financial education resources and events to help individuals improve their financial literacy skills. The overarching goal of Financial Literacy Month is to empower people to take control of their finances, make informed financial decisions, and achieve greater financial well-being.


Why is financial literacy important?

Financial literacy is a key component of financial wellness. Consider these facts:

  • Personal finance is the number one topic of argument within a marriage.
  • Parents rank teaching financial responsibility to their children near the top of their parenting wish list. 
  • Only a handful of states require high school students to take a personal finance course before graduation.
  • Poor financial literacy leads to poor decision-making, which leads to poor behavior and, therefore, limits the household's ability to reach its financial goals.

Financial literacy is crucial to responsible money management and a financially fit life.

How to Observe Financial Literacy Month

  • Make financial literacy the topic of your book club this month. Choose a book related to money to discuss at your book club. You can choose a classic like The Millionaire Next Door, Rich Dad Poor Dad, or a newer bestseller like I Will Teach You to be Rich. 
  • Research on personal finance questions each day. Have you always wondered which of the two popular debt-crushing methods (avalanche and snowball) is used more often? Do you know the difference between a Roth IRA and a traditional IRA? Look up the answer to one personal finance question like these each day of April. By the end of the month, you'll have a considerable amount of financial knowledge. 
  • Start reading a financial blog. There's no shortage of blogs that explore financial topics. Browse the most popular to find the one that best speaks your language.
  • Commit to a new financial goal. Financial literacy is all about using your knowledge to make better financial decisions. Use this month's opportunity to commit to one financial goal in a challenging area. For example, you can create a monthly budget and stick to it. You can work on building up an emergency fund. Or, you can finally take the plunge and start investing. Choose one goal, and work at it until you've achieved it. 

Financial literacy is a crucial skill for maintaining financial wellness throughout life. This month, take advantage of the opportunities available and create learning experiences to broaden your financial literacy. By expanding your financial knowledge, you'll be better equipped to make responsible money decisions throughout the year.