Most people know April for Earth Day and cleaning up our environment, but it is also Financial Literacy Month. Just as our environment benefits from regular care and attention, so do our finances. When we take time to clean things up, we create a healthier foundation for the future.
Congress established Financial Literacy Month in 2004 to address gaps in financial knowledge. At that time, Utah was the only state with a personal finance graduation requirement. Today, according to the Council for Economic Education, 39 states require some level of personal finance education for graduation. This includes New Hampshire, which, in 2022, adopted a requirement that high school students complete a half-credit course in personal finance. The requirement applies to graduating classes starting in 2026.
While this is progress for younger generations, many adults today were never formally taught how to manage money. Their parents often didn’t teach these concepts to their children because they hadn’t been taught either. The good news is that you can start learning and applying it today.
What is financial literacy? At its core, financial literacy is the understanding and application of concepts for managing your money, such as budgeting, saving, using credit and making informed decisions.
Improving financial literacy is not about knowing everything or being perfect with numbers. It’s about understanding your situation, your behaviors, and your mindset around money and applying what you learn to improve your circumstances.
You can build the knowledge and skills you need to improve your finances through books, college classes or online resources.
Here are three actions you can take today to get started:
Get to know your current financial situation. Create a list of all your accounts and balances, including checking, savings, debts, credit cards, loans, investments and retirement accounts.
Understand your spending habits. Review and categorize your spending from last month, or track your spending over the next month. Apps can help simplify this process.
Keep learning. Read a book, attend a workshop, or enroll in a financial literacy course. The NH Federal Credit Union offers free webinars on a wide range of financial topics on its website: nhfcu.org.
Choose one of these actions and take a first step toward building your financial literacy.
Remember, financial literacy isn’t just financial knowledge. It’s about applying what you learn to improve financial decision-making and create positive change.
Renee Chapman (Sangermano) is an Accredited Financial Counselor (AFC) candidate and founder of Climb Higher Financial Coaching, where she helps individuals and families navigate budgeting, debt and everyday financial decisions.