April provides outlets for financial education
Staying informed about finances may be one of the most important things consumers can do, especially having just experienced the worst economic downturn since World War II.
April may have presented people with an additional reason to polish up their economic knowledge, as it holds the designation of being National Financial Literacy Month. Money Management International set up a website with a 30-step process consumers could embark upon to improve their finances.
The site, www.FinancialLiteracyMonth.com, included tips like setting up an emergency savings account, which can help consumers deal with unexpected expenses or sudden unemployment. During the recession, some people may have found themselves relying on credit card debt to get by while looking for a new job.
Experts advise consumers have between three and six months of expenses saved in an emergency savings account. Other pieces of advice on the website included getting a credit report and setting up a budget.
Government efforts to educate consumers
The government also relaunched a redesigned version of a financial education website, www.MyMoney.gov. The site is run by the Financial Literacy and Education Commission and offers the combined knowledge of 21 federal agencies.
“Financial education and access is a priority for this administration, and we’re pleased to provide this critical resource to help Americans find free, reliable and unbiased information that can help inform their daily financial decisions and plan for the future,” said Treasury Deputy Secretary Neal Wolin.
The site offers advice tailored to specific demographics, including women, parents and young people. A financial savings calculator is one of the features of the site, as are ledgers that help establish a household budget and prepare for college tuition payments.
Youth need financial instruction
While adults may be in line for some additional education, a recent effort from the Treasury Department and the Department of Education showed that high school students scored an average of 70 percent on a financial literacy test.
Though schools may offer financial and business classes, one of the best ways for parents to educate their children is to set a good example through how they handle their finances.
Additionally, parents should make sure they take the time to sit down with their kids for a little financial tutoring. Topics they should consider covering include how credit card debt works along with the importance of setting up a savings account.
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