What is National Financial Capability Month?
In 2004, the U.S.Congress designated April as National Financial Literacy Month, which has evolved into National Financial Capability Month. Each April, federal and state agencies, credit unions, schools, nonprofit organizations, businesses, and other entities take part in this initiative to raise awareness about the importance of financial literacy education in the United States and the consequences that may be associated with a lack of understanding about personal finances.
Why is Financial Literacy Important?
Financial literacy is key to understanding how to save, earn, borrow, invest, and protect your money wisely. It is also essential to developing short- and long-term financial habits and skills that lead to greater financial well-being. Becoming financially capable could be as simple as:
- Creating a financial plan that includes a budget to determine which expenses are flexible or fixed, as well as ensure you have enough emergency savings to prepare for unexpected expenses; or
- Pulling your credit report once a year to make sure the information is accurate, complete and up- to-date. Reviewing your credit report will also help to guard against identity theft.