National Financial Literacy Month is recognized in the United States every April. The purpose is to shine a light on the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits for obtaining one’s short-term and long-term goals.
If National Financial Literacy Month is recognized in April, why are we writing about it now? After all, it’s nearly June. The fact is that most people don’t know about Financial Literacy Month. The fact is, WE didn’t even know about it. Well, now that you, and we, know about it, let’s learn more . . .
Many of the country’s financial institutions and nonprofit financial educational organizations promote Financial Literacy Month by holding events and circulating educational materials that focus on effectively handling money, dealing with debt and the pitfalls of credit.
This all sounds well and good, BUT most Americans are NOT listening or doing anything to learn more about this important topic.
Hopefully our clients and readers of this newsletter hold a deeper understanding of personal finance than most Americans, though each person has their own financial strengths and weaknesses and areas for improvement.
Unfortunately, Americans still have record amounts of credit card debt, low savings rates and under-funded retirement accounts. They have higher stress and lower pay from jobs they are worried about NOT having in the near future.
Plan B?
Many Americans are living without a “Plan B” which means one job loss or significant medical bill can drive a person or family into bankruptcy. This leaves Americans to hope that the U.S. government will serve as the ultimate savior of poor management of money OR unexpected misfortune.
The CEO of bond giant Pimco Mohamed El-Erian recently discussed the troubles facing various governments by stating we are in difficult times and we have already used our “spare tire.” Therefore, there is little or nothing on which to fall back. (Heck, most cars don’t even have a full spare tire anymore; they have a smallish “donut” tire in the trunk.)
