Broker Check
April is National Financial Literacy Month

April is National Financial Literacy Month

April 12, 2024

April 2024 is the 21st anniversary of National Financial Literacy Month.

In today's world, with the challenges of inflation, rising interest rates, and labor issues that have persisted since the COVID pandemic, understanding finances is more important than ever. This knowledge is vital to maintaining the American Dream and avoiding severe impacts on our collective future.

Recent data shows concerning trends:

  • According to FINRA, only about one-third of Americans grasp essential financial topics like interest and mortgage rates—a number that has dropped by 19% in the last decade.
  • A report by the National Financial Educators Council reveals that insufficient financial knowledge cost Americans $415 billion in 2020 alone.
  • CNBC has found that 74% of working Americans feel stressed about their finances, with 61% living paycheck to paycheck.

Those who are more financially literate tend to manage their money better, keeping expenses below their income, saving for emergencies, and effectively planning for retirement.

There is a significant need for our schools to integrate financial education into their curriculums.  Although the complexities of today’s financial world have contributed to the declining literacy scores, I believe it is the lack of attention to this education in our school curriculums that is mostly to blame.

Although U.S. and state lawmakers issue annual proclamations and resolutions recognizing April as Financial Literacy Month, they have done little else to affect any improvement in financial literacy. Real attempts at change have come from non-profit organizations. Resources like books and webinars from groups like Money Fit and Jump$tart can be incredibly helpful.

Money Fit also encourages personal initiatives like:

  • Check out and read a personal finance book from the library
  • Attend one financial webinar a week and share what you learned on your social media pages
  • Read a children’s personal book to your kids, grandkids, nieces, or nephews.
  • Subscribe to a new blog or podcast about a personal finance topic you either love or could use help with.

Paragon Financial Group will being do our part by hosting a series of virtual financial literacy workshops, underlining the urgent need for enhanced financial education initiatives.