The month of April not only marks the transition into the spring season, but it also represents special occasions such as Easter and April Fools Day. However, those who work in the financial services industry also recognize April as “Financial Literacy Month”.
In 2004, Hawaii’s Senator Daniel Akaka submitted in the Senate (who agreed with unanimous consent) that April was to be considered “Financial Literacy Month”. This was to raise awareness about the importance of financial education. Akaka’s efforts extended to the implementation of the Minimum Payment Warning Act under the 2009 Credit CARD Act. It requires credit card bills to include a disclosure box (sometimes referred to as an ‘‘Akaka Box’’) to show consumers how long it would take to repay their entire balance if only minimum payments were made each month. It also includes a demonstration of how much it will cost to pay off the outstanding balance within a 36-month period.
In 2003, Akaka was the first to host the “Financial Literacy Day on Capitol Hill”, a collaborative effort with groups such as the Council for Economic Education, Junior Achievement, and the Jump$tart Coalition. The purpose of the event was to share the advances within financial education programs and resources, with the participants sharing the unified goal of advancing youth financial literacy. The event still occurs annually to the present day.
April isn’t the only month designated for celebrating the necessity of Financial Literacy – January is “Financial Wellness” month.
While there isn’t a specific way to celebrate, many see this as an opportunity to review their financial picture and progress toward personal goals. Others feel led to assist those who need help with understanding their finances. My Financial Coach offers many resources between our Blog and the MFC University. These are great resources to help you get started on your financial literacy journey. If you feel like you are struggling to find solutions, or aren’t sure if you are choosing the best options, you can get in touch with one of our financial coaches.
Financial literacy encompasses more than an understanding of budgeting and savings needs. Financial literacy can also look like finding the right tax strategies for your unique situation. It can look like identifying more efficient ways to pay off student loans. You may have a high understanding of your financial situation as a single individual, however joining your life with a significant other will bring a lot of unknowns that need to be re-explored together.
Some people picture a “financial advisor” as solely a person who manages investments, and are not aware that there are different levels and types of financial planning available. They may also not be exactly sure about what type of financial professional they need. That’s why Financial Literacy Month is so important!
Sparking these essential conversations and prompting introspection is crucial. If you are interested in unbiased personal modeling and recommendations on retirement, cash flow, insurance, taxes, etc. in a digital online platform, consider scheduling a consultation with a My Financial Coach CFP®. Start your journey to financial literacy today!
