April is Financial Literacy Month, if you didn’t know.
Not knowing is forgivable, but being financially illiterate is a much bigger problem in our book.
When thinking about financial literacy, most people come up with some baseline of knowledge they need to get through their finances on a daily, weekly, monthly and yearly basis while still planning for the future.
Financial literacy stretches from introducing money to young children all the way to understanding how credit, debt, risk and investing factor into personal finances for adults.
Some of us are getting by without knowing everything and others of us are making do with the little we have.
If you don’t know how to manage your finances, pay off debt or save money, then there are plenty of resources to help you learn. Even here at Mvelopes we can help you create a budget, save money and eliminate debt.
The danger comes when we don’t know what we need to.
The National Financial Educators Council found that 28% of people older than 35 said they had lost $30,000 or more in their lifetimes due to financial illiteracy. Not knowing something they could have learned cost more than 1 in 4 people $30,000!
Between the ages of 18 and 65, the average for money lost was $11,480. How much do you think you have either missed out on, wasted, or lost because you didn’t have the financial knowledge you needed?
Not having necessary financial knowledge has been shown to lead to negative credit behaviors, high-cost borrowing like payday loans, poor mortgage choices, mortgage delinquency, and foreclosure. On top of that, debt. Lots and lots of debt.
Former Federal Reserve Chairman Alan Greenspan said, “The number one problem in today’s generation and economy is the lack of financial literacy.”
Yes, “today’s generation” also needs to get off his lawn, but with all the information available, there isn’t an excuse for not seeking out the financial knowledge you need when you need it.
Self-directed financial learning has been linked to financial and career satisfaction. So if you don’t feel great about your career or finances, you may want to brush up a little more on the financial side of things and start feeling better about where you’re at in your life.
This Financial Literacy Month, take the time to learn something new, whether it’s a simple principle of daily finance or how to invest the savings you have lying around.
Find what you’re looking for here on the Mvelopes blog or on our social media accounts. If you’re an Mvelopes Plus or Complete user you can access everything in our Learning Center and learn more through our videos, eBooks or other resources. If you’d like to get started learning how to budget, get started with Mvelopes today to learn something new, do something different, and live better.