Did you know that Financial Awareness Day is in August? While it may not be everyone’s favorite holiday, we think it’s pretty important.
Financial literacy covers more than just making money and paying the bills. It helps you understand how to plan for the future and recover from mistakes in the past. When you are aware and in control of your money, you may have less anxiety, stress, and fear crowding your thoughts.
In School of ACE, our blog, we offer tips and tricks for creating and sticking to your budget. With just a few minutes of your time, our articles can help you become financially literate and ready to move ahead with confidence.
How to become more financially literate
To give you an idea of how you can increase your financial awareness, we’ve included some of our top tips below. Use these suggestions to understand your financial health. Then, be sure to check out our blog for more!
1. Build strong credit
A good credit score can open many doors. Building strong credit, however, can take time. We recommend staying on top of your credit score, as you build it. By paying off debt, resolving any collections, and paying on time, your credit score will get better and stronger more quickly.
This even applies to poor credit scores. Paying your bills on time, maintaining low credit usage, and minimizing inquiries can all improve credit scores. Though it won’t happen overnight, your hard work will pay off.
2. Protect your personal and credit data
Identity and credit theft are serious threats to your personal and financial well-being. Thankfully, there are monitoring services available to watch for signs of theft. These companies alert you when they see suspicious activity. You can then act quickly to minimize the damage and protect your hard work.
Taking the right steps to protect your information is also essential. With the right combination of preventative and proactive actions, you can decrease your chances of becoming a victim of identity or credit theft.
3. Keep learning about finances
Knowledge is power. The more you know about your finances and options, the greater your options are.
Using mobile banking, for example, puts your finances in your hand. You will always be able to know what you have in the bank and how well you are sticking to your budget. From sending money and depositing checks to getting low-balance alerts, you can use mobile banking to make healthy financial decisions.
Financial awareness also includes understanding how your income works. Your paycheck isn’t just a reflection of your hours worked; it includes numerous deductions, such as income tax, insurance costs, and more. When you can anticipate these effects on your income, your budgeting will be more accurate and effective.
Financial literacy and awareness can transform your life. The more you know, the more you are empowered to make decisions that build a better future. Most importantly, you don’t have to do it alone. Check out the School of ACE Blog to find more information.
