April is Financial Literacy Month, I’m sure this isn’t the most noteworthy event in your diary, or if you’re even aware of it. Granted, Financial Literacy Month may not be the most exciting month of the year but it is something that most of the population should pay greater attention to.
Financial literacy can have a huge effect on many aspects of people’s lives. The ability to effectively manage money, and understand its implications in many cases can be the difference between a life of struggle and a life of prosperity.
Should people pay more attention to financial literacy? Absolutely. Should more of an effort be made to implement financial literacy? Definitely. So why is it being overlooked? The main obstacle to creating an all-encompassing financial literacy programme is the public’s lack of motivation. When confronted with a specific financial decision, say one related to a life change; a marriage, divorce, new child, new job, lost job etc, people find the advice and education. Without that life-changing-related cue however, the general public will rarely seek out the financial education they need.
Searching for financial solutions as a life changing financial crisis looms is often revealed to be too little, too late. Financial education increases levels of personal financial literacy, leading to responsible monetary decisions and reducing the risk of precarious choices. Surely prevention is better than cure in the case of personal finance. A little bit of financial know how will go a very long way to ensuring complex and draining financial struggles are avoided.
April is Financial Literacy Month, ignore it at your peril.