Did you know that April is Financial Literacy Month? It’s a time dedicated to raising awareness about the importance of financial education and empowering individuals to make informed money decisions. In a world where financial stress is a leading cause of anxiety, understanding the basics of budgeting, saving, investing, and managing debt can be life changing.
Financial literacy isn’t just about numbers—it’s about financial security, independence, and the ability to build a better future. Whether you're planning for retirement, paying off debt, or just getting started with budgeting, improving your financial knowledge can help you take control of your money. This month is the perfect opportunity to assess your financial habits, set new goals, and strengthen your understanding of personal finance.
Here are five key tips for improving your financial literacy:
- Create and Stick to a Budget – Track your income and expenses to understand where your money is going. A budget helps you prioritize essential spending, savings, and investments while avoiding unnecessary debt. An easy way to start is to use our Personal Finance tool, built into Chambers Online Banking. With Personal Finance, you control your finances and easily discover where you’re spending and where you could save.
- Build an Emergency Fund – Set aside at least 3-6 months' worth of living expenses in a separate savings account. This will help cover unexpected costs, such as medical emergencies or job loss, without relying on credit. To help you build your savings account, consider enrolling in our Savings Cents program, which rounds up your debit card purchases and deposits the change into your savings account.
- Understand Credit and Debt – Know how credit scores work, the impact of interest rates, and how to manage debt wisely. Avoid high-interest credit cards and always make payments on time to maintain a good credit score. In the market for a low interest credit card? We can help!
- Invest for the Future – Learn about different investment options like an IRA. The earlier you start investing, the more time your money has to grow through compound interest.
- Continuously Educate Yourself – Financial literacy is an ongoing journey. Read books, take online courses, follow financial news, and consult financial advisors to improve your knowledge and make informed decisions.