April is Financial Literacy Month, as designated by the U.S. Senate in 2003.
So what is financial literacy? Wikipedia has a nice definition: “Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.”
To break it down, I would describe financial literacy as a working knowledge of how finances function and relate to your own situation. When you think about the word ‘literacy’, you normally think about the ability to read and understand words and language. Financial literacy is about the ability to understand the language of money and economics.
So in honor of Financial Literacy Month in April, I want to share some of my favorite websites that will increase your knowledge of all things money-related:
- Credit Karma—Know what your TransUnion credit score is for FREE
- Credit Sesame—Know what your Experian credit score is for FREE
- Investopedia—Defintions of common financial terms, along with other helpful money-related information
- LearnVest—Helpful articles and stories from people who share their financial and career experience
- DailyWorth—By women for women, they provide helpful articles and advice regarding finance and career
I find it to be very helpful to read whatever I can find to sharpen my financial literacy skills, including information from websites, books, and magazines. During April’s Financial Literacy Month and beyond, focus on your finances and you will feel more control through the knowledge that you gain from your efforts.
What does financial literacy mean to you? How would you rate your financial literacy at this point? What would you like to improve upon? Please comment below and share your thoughts on Financial Literacy Month.