Financial literacy is the foundation of a healthy financial journey. Whether you’re just starting yours or preparing for the next step, understanding key financial concepts can help you make smarter decisions for your today and tomorrow to achieve your goals.
So, What is Financial Literacy?
Financial literacy is the ability to understand and utilize various financial skills. Some of which include budgeting, saving, investing, and managing debt. When you understand your finances deeper than their surface level figures, you can feel empowered to take control and make informed decisions that can lead to success and long-term stability.
Key Areas of Financial Literacy
There are four distinctive areas of financial literacy to understand before you can utilize them.
- Budgeting: Tracking your income and expenses to ensure your spending is within your means.
- Saving & Investing: Dedicating money for short-term needs like an emergency fund and long-term goals like retirement or buying a home.
- Credit & Debt Management: Understanding how credit works, how your credit score affects your lending options, and managing your debt-to-income ratio responsibly.
- Smart Spending: Making informed purchasing decisions and avoiding unnecessary, potentially harmful, financial risks.
One piece of financial literacy cannot stand on its own without the other. It is difficult to save and invest to reach a goal while managing debt poorly or ignoring the budget you’ve set for yourself. Think of financial literacy like a wheel instead of a line; everything is connected somehow, and everything moves in tandem together. If you lose one spoke of the wheel, the rest will falter. You must ensure each part of the wheel is solid enough to hold everything together.
We have plenty of additional resources about each area of financial literacy to help you learn and grow in order to meet your goals. Check out our Content Corner for additional resources, or search for a specific topic in the search bar above to locate relevant resources.
What is Financial Literacy Month?
The entire month of April is dedicated to financial literacy. It’s a time to raise awareness about the importance of financial education and help individuals build smart money habits. Signal uses this month to provide valuable resources and tools, and host events to help members and non-members improve their monetary well-being.
Check out some of our pieces from years past:
2024 Financial Literacy Month Wrap-Up
Why Financial Literacy Month Matters?
As stated above, financial literacy isn’t linear, and nor is it anything but a lifelong journey. With that being said, Financial Literacy Month is a great opportunity to review and assess your current money habits, set new financial goals, and utilize free educational resources. Reduce fiscal stress and set yourself up for financial success!
This Financial Literacy Month, join us for special events, webinars, and education to boost your financial confidence. View our schedule of events and resources here.
