April is Financial Literacy Month

Photo Credit: Jekkyl

I just found out April is Financial Literacy Month. I decided to make a contribution by checking on the state of affairs of our future.

The Washington Post had an article about the lack of basic knowledge U.S. high-schoolers had in personal finances.

“In light of the problems that have arisen in the subprime mortgage market, we are reminded of how critically important it is for individuals to become financially literate at an early age so that they are better prepared to make decisions and navigate an increasingly complex financial marketplace,” the Fed chairman added.

Some of the questions were involving different type of investments and credit card liability. While those are good things to know, it would be great to focus on the basics of personal finance. Learning to budget can help them plan ahead for larger purchases, like buying a home.

It’s about building a foundation to get to the next step of what type of investments to use or how to plan your retirement.

I have to include Single Ma’s quote, which like her blog, is insightful and funny:

Personal Finance is NOT rocket science. If you earn $5 and you spend $6, that’s a bad. If you earn $5, spend $2, invest/save $2, and give away $1. That’s good. I hate when “experts” make people think you have to understand complex issues in order to make responsible financial decisions. It’s discouraging for the average person.

Personal finance is a necessary skill for life. You don’t jump right into the complex stuff, you start with the basics and then go from there. Just looking at some of the headlines in the papers, there are some problems that could’ve have been avoided if people followed the most basic rule of budgeting:

“Spend less than you earn.”

I found a great quiz to share with middle and high-schoolers that will give a reality check on how much it would cost to support their lifestyle. If you know someone who could benefit from it please pass it on.

While we can’t turn back the clock, we can start now on improving our finances. We can also help the next generation to learn good financial principles that will help them to succeed.

Don’t know how (or when) to start? One series is the M-Network’s Money Matters for All Ages. It’s available as a FREE e-book. Here are the articles in the series:

• Infants: Financial Strategies for Infants and Young Children @ My Dollar Plan
• Tiny Tots: Teaching Preschoolers About Money @ Paid Twice
• Pre-teen: Personal Finance for Children and Pre-Teens @ Being Frugal
• Teenagers:
  • Money Advice to My Teenage Son @ Debt Free Revolution
  • Teach your teen the basics of money management @Gather Little By Little
• College Age: College Money Matters @ Mrs. Micah
• 20s:
  • Financial Advice for Your Twenties @ Remodeling This Life
  • Money Tips for the Twenty Something Crowd @ Cash Money Life
• 30s:
  • The Chaotic Thirties @ Moolanomy
  • Personal Finance Advice for Your 30’s @ My Two Dollars
• 40s: The Forty Year Olds’ Wakeup Call @ Credit Withdrawal
• 50s:
  • You’re in Your 50s – Wake Up and Start Saving @ Millionaire Money Habits
  • Retirement Objectives in your 50’s @ Credit Withdrawal
• 60s+:
  • In your 60’s? Use your financial freedom wisely @ Rocket Finance
  • Easing into the Golden Years- the 60’s and Beyond @ Chance Favors
• Retirement:
  • 4% Withdrawal Rule for Retirement @ Four Pillars
  • Retirement in the UK @ Plonkee
• Highlights of all ages: My Dollar Plan

As you can see by reading my blog, I try to learn about finance and use what I learn (It’s useless unless you do). I’m not perfect, but trying to change little by little. What advice would you pass on?

• Handle Your Personal Finances Like A Business Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance. Photo Credit:  Alex Osterwalder Is it time for you to get a grip on your finances? Or perhaps you are just starting......
• Fixing your Finances: Get Started on Just One Thing I've been talking to a lot of people around my neighborhood and  many are concerned about their finances in this economy. They are worried that they might lose their job (if they haven't already, I have to buddies who were laid off in the last month, one was an engineer,......

• Sunday Money Roundup - Life At $5.00 A Gallon Edition. As you read this, we are probably in our car, packed to the gills with stuff, hurdling along towards New Mexico. Having just paid $4.89 for a gallon of gas, I cannot wait to hit those out of the way, "we are the only station for miles" $5.00+/gallon types out......
• How to Teach Personal Finance to College Kids The college crowd is among the most active users on the web, one can only hope they find resources like this out there.  We've looked at how to teach personal finance to high schoolers, but how does it differ from the money management skills needed in college and beyond?......