In the United States, since the late 1990s, financial experts and educators identified a significant gap in financial knowledge among young people. An effort began to designate a special day of the year to educate youth about essential money management skills. Over time, the entire month of April has been identified as National Financial Literacy Month.
Education Makes a Difference
A recent study revealed that taking just one personal finance course in high school can lead to an average lifetime benefit of approximately $100,000 per student. All of that benefit from improved financial decision-making, imagine what a long-term impact ongoing financial education could have on their financial wellness!
I have hope for the future as we see more efforts like the one just passed in Texas. With a vote of 140-1, all Texas public high school students will now be required to complete a standalone semester-long course in personal financial literacy for graduation. Don’t we all wish we had that required course back in our high school days? What a way for Texas to wrap up April as Financial Literacy Month!
A Need for All Ages
Thanks to the work of organizations like The Financial Awareness Foundation, the month long April focus has become worldwide and ongoing. It’s encouraging to see the recognition of the importance of money management skills as essential life skills. And along with that has been the acknowledgement that it’s not just youth, but all ages that need ongoing education, guidance, and practice making wise financial decisions.
Also read, Here’s Why You Need Financial Education – ASAP!
Childhood and Relationships
No matter what our age, it is crucial to remember that our money personality, our mindset around money and our comfort level with it, was very influenced by two aspects of our lives. Our childhood, when we had no control or ability to filter what we were experiencing and absorbing, was a key starting point for all of us. And the relationships we have had along the way in our adult lives have also shaped our current money mindset.
Drop the Guilt
Once we unravel our money mindset to better understand where it came from, my hope is that women use that understanding to let go of some of their guilt. So many women I talk with comment that they should know more or be better with money or tell me that they are really uncomfortable with financial decisions. And they feel guilty or inferior or embarrassed about that. But our childhood experiences were nothing we had control over, and that is the root foundation of how we feel about money today.
Money Mindset for Men
The other aspect of this that I see more and more is that men can also be the one in a relationship with a money avoidance mindset. Women worry from the other side of that situation: “I worry about what he would do if I suddenly wasn’t around. I take care of all the finances.” “He has no interest in learning or helping with any of the household money tasks.” “I think he got burned out on running his business so now wants nothing to do with our personal finances.” “When I try to bring it up or show him some information, he just walks away and says he will figure it out if that time ever comes.”
A Life Skill Forever
Whether it’s day-to-day decisions and actions or planning for the future when only one of you will be around to handle everything, or perhaps you’re single and already handling everything, it’s an important topic. Your money mindset and financial literacy impact your life. No matter where you live or what you do for a living, wise financial decision making is a life skill that will follow and impact you everywhere.
A De-stressor Opportunity
Think of financial literacy like a de-stressor opportunity. The more awareness, practice and comfort level you have, the less financial worry you experience. Which gives you more time and energy to focus on and enjoy the other aspects of life that you enjoy more. Whether you feel like it is a necessary evil that you must endure or an interesting habit that you enjoy adventuring through, it’s a lifelong need we all face.
Nudge Yourself Now
Are you ready to nudge your money mindset in a healthier direction and take consistent steps toward better financial wellness? I encourage you to find one area that is worrying you right now, and take action on that. Whatever your emotional trigger is right now, use it to your advantage to be your motivator. Maybe sign up for a newsletter, attend a class, read a book, chat with a friend, download a checklist, find an accountability partner, or something else that speaks to you right now. It doesn’t have to be April to destress your money life, any time you take action is a great time!
Let’s Have a Conversation:
Have you thought about how your money mindset was shaped? How have you taken steps to improve your financial wellness? Has anything surprised you about your money journey? Let’s have a discussion!
