Putting the “Person” Back in Personal Financial Literacy
by Linda Stroman
April is Financial Literacy Month, and around the country, a greater emphasis is focused on the need for individuals and families to increase awareness of their personal finances. There is an increased demand in our country to help us understand and address our financial needs. Financial education is an area that has been ignored in our educational system and by employers for far too long and it has been a topic of very little discussion in households across the country until recently.
Why is Financial Education so important? Regardless of income or educational background and with quickly accelerating changes in the financial services market and technology, the need for programs and services catering to basic and advanced financial education is crucial. Laws, products, services, demographic changes, people living longer, baby boomers retiring, college students graduating with the added stress of repaying hefty student loans, the rise of the subprime lending market, and other economic factors emphasize the need to increase the wealth of knowledge that is available regarding personal finances.
More and more financial institutions, nonprofits, and government agencies have stepped up to deliver necessary, up-to-date information on financial subjects. Financial Literacy programs are beginning to populate the curriculum of high schools, faith-based organizations, community-based organizations, state cooperative extension services, government agencies, nonprofits, banks, and credit unions. Launched in April 2007, DC Saves shares information about the financial education efforts of nearly 40 nonprofit, business, and government partners in our region—visit our website at www.dcsaves.org to find out more.
Beyond becoming financially literate and learning all we can to be informed and thoughtful consumers, we must also do our part to understand our money behaviors and the reasons why we manage our finances the way we do. Unexpected events or life cycle transitions such as starting a family, getting married, or losing a loved one can lead us to making some basic changes that could increase our overall financial well being. With the state of the current economy and the nation, there is no better time than now to seize and maintain control of all aspects of our financial well-being and obligations.
Successful money management begins with us as individuals. An initial step is to define our personal values and goal setting. Values are the basis for our decisions, and goals give us direction and purpose for the way we spend our money; the way we live. Goals motivate and encourage us to work toward things that are important to us. In today’s world, we are more responsible for our retirement status, securing the best mortgages and credit card products and services, building and maintaining adequate emergency funds, and exercising our option of delayed gratification and evaluation. We need to be able to decide if this is the moment in time when we should secure this service or purchase a particular product, and when is the best time to secure appreciating assets to build our net worth such as buying a home or starting a business. The power to control our finances lies within us.
Many websites offer information on financial topics and many organizations and companies provide one-on-one assistance for free or varying fees. With all of the information available, we must begin to communicate within our households, communities, and families to use these resources wisely. A few websites that can help us with educating ourselves and making sound financial decisions are www.mymoney.gov, and www.moneyskill.org (for high school students).
It is essential to carve out time in our busy lives to evaluate, monitor, and improve our financial well-being with knowledge of finances and understanding of our money motivators. Take the challenge in recognition of Financial Literacy Month!
Celebrate Financial Literacy month on Saturday, April 5, at the DC Saves Financial Literacy Fair at THEARC. Join us from 10 a.m. to 2 p.m. to get free tax help, meet one-on-one with a credit counselor, get information from financial institutions, and even open a new account. We'll have prizes, games, and information for the whole family to help you take control of your finances, and build wealth, not debt!
The Fair will take place at the Boys and Girls Club at THEARC, 1901 Mississippi Ave. SE. Free parking is available or take Metro to THEARC (Southern Avenue Station on the green line). Find more information at www.dcsaves.org. Call 202-419-1440 or e-mail dcsaves@caab.org to register.
