Financial Literacy Month 2023
The National Financial Literacy Month — renamed by the Biden administration as National Financial Capability Month — is recognized in the US to emphasize the need for financial literacy and teach Americans how to improve their financial outlook.
It’s both a celebration and a task. Financial literacy is important in the United States, where Americans are—to a large extent—solely responsible for ensuring their own financial security.
Whether you’re just starting your career or have been earning your way for quite a while, it’s never too late to review and upgrade your financial smarts.
What’s Financial Literacy?
According to Gary Isler, Senior Vice President, Investments at David Lerner Associates, “Financial literacy refers to the knowledge, skills, and understanding you have about personal finance and financial matters. This includes having the ability to understand financial products and services and manage personal finances.”
Being financially literate means understanding key financial concepts such as budgeting, saving, investing, credit scores, loans, interest rates, and taxes. It also involves interpreting financial statements, managing debt, and making informed decisions about financial products such as credit cards, mortgages, and insurance policies.
Lack of financial capability impacts Americans at home and in the workplace. A study by Walden University estimated that over 65 percent of Americans are financially illiterate and unable to manage their finances, meaning that this month-long event is an important learning opportunity for people of all ages.
When is Financial Literacy Month 2023?
National Financial Literacy Month takes place in April.
History of the National Financial Literacy Month History
This month-long event started as Youth Financial Literacy Day, which was first introduced by the National Endowment for Financial Education (NEFE).
The Jump$tart Coalition, a nonprofit organization dedicated to advancing financial education for young people, took over the planning in 2000. The Coalition saw the need to raise awareness about the importance of financial education, especially among young people, who often lack the knowledge and skills necessary to manage their personal finances.
In the next few years, attention was focused on turning this movement into a national campaign. In April 2004, the United States first observed National Financial Literacy Month following a joint resolution of the Senate and the House of Representatives. The resolution aimed to raise awareness of the importance of financial education and promote financial literacy as a key component of financial stability and success.
Who Gets Involved in National Financial Literacy Month?
National Financial Literacy Month is observed annually, with various organizations and institutions hosting events and activities to promote financial education and awareness.
Involvement and activities vary widely by state, region, and community. Some regions adopt extensive activities to reach Americans from elementary school all the way through senior centers.
In recent years, the importance of financial literacy has become increasingly recognized, with a growing number of schools, businesses, county extension offices, and nonprofit credit counseling agencies working to promote financial education and help individuals develop the skills and knowledge necessary to achieve financial stability and success.
Your state’s affiliate of the national Jump$tart Coalition will most likely be involved in the planning and implementation. You can find your local Jump$tart affiliate by clicking here.
Financial Literacy Month Participation Ideas
- Check out and read a personal finance book from the library.
- Take an online personal finance course and share what you learned on your social media pages.
- Read a kids’ personal finance book to your children, grandkids, nephews, or nieces.
- Read our Newsroom section.
- Locate an organization in your area and support its efforts. Or volunteer with us.
If you’d like to get involved with National Financial Literacy Month as a volunteer, give us a call. We would happily connect you with like-minded organizations and individuals promoting personal financial responsibility nationwide.
Tips for Improving Your Finances during This Year’s Financial Literacy Month
- Set short, mid, and long-term goals
- Set a realistic budget
- Know your debt-to-income ratio (DTI)
- Kick your credit into shape
- Automate your savings
- Build an emergency fund
- Consider side hustles
- See if you’re on track for your retirement goals
Take Charge of Your Finances This April
The last 3 years have been some of the most challenging for Americans in decades.
Get organized to navigate the coming year successfully!
Financial literacy will enable you to make informed decisions about your financial life, which can ultimately lead to financial security and stability.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc.
This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual’s personal circumstances.
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