The University of Florida Extension
April is National Financial Literacy Month, a designation passed by the U.S. Congress to raise public awareness about the importance of financial education. Everyday, Americans make financial decisions that affect long term financial stability. According to supporters of the resolution, financial literacy is an issue that should command our attention because many Americans are not adequately managing their finances for education, healthcare, and retirement.
Recent national statistics reveal the savings rate for 2017 fell to a new low of 2.4 percent, down from 5.4 percent in 2016. To complicate matters, on the spending side, Americans owe over $905 billion in credit card debt. These issues increase the need for consumer knowledge of money and finance. With a “take charge” attitude, people can sharpen their money skills and improve their financial well-being.
Education is the key to help move Americans toward improved spending and savings habits and raise the level of money invested in retirement plans. It’s never too early to encourage long-term savings for future goals. According to the National Endowment for Financial Education, surveys show as few as ten hours of education can influence the practices and financial knowledge of young people. This year, the Florida legislature passed a state standard for high school graduation; students are required to take a half semester in financial literacy before graduation. It is a step in the right direction, but more would be better.
Financial literacy needs to start early in a child’s life, and it can involve the whole family. Early experiences about how to spend an allowance give a child practice in decision making. Parents can help kids practice the concepts of planned spending and saving for a future purchase; a simple piggy bank can be the first step.
All consumers, regardless of age, need to understand the decision-making process of spending, saving and wise use of credit. Adults too, need to sharpen their consumer skills and learn to manage money and make sound financial decisions.
To learn more about managing money, contact the Madison County Extension office at (850) 973 - 4138. We have consumer information and fact sheets to help you get organized and headed down the path of financial stability.
The University of Florida Extension/Madison County is an Equal Employment Opportunity Institution.