Spring Into Financial Literacy
Happy April! What many of you might not know about this lovely time of year is that it is actually Financial Literacy Month!
Financial literacy is all about understanding and building better money habits that will lead to a lifetime of wealth. By taking the time to strengthen your financial literacy, you’re setting yourself up for a much happier and healthier relationship with your money, so it’s best to start as early as possible!
In the spirit of the season, we’ve reached out to expert panelists Katie from Navicore @navicorePR, Courtney McQuade @CourtMcQuade, Deb Nason @dnason, and Jessica Dickler @jdickler to help you learn about the importance of financial literacy and what steps you can take today to invest in your financial wellness. Let’s dive right into budgeting, credit, savings, debt, and more!
Missed the Tweet Chat? Here’s a recap:
Let’s start with some budgeting basics. Why is budgeting so important? What can you learn from budgeting and analyzing your spending habits? How do you improve your budgeting and spending practices?
Courtney McQuade: Budgeting is what keeps you on track to save and have the money you need for not only retirement, but for some fun as well! It is easy to spend without realizing you're spending more than you should... a budget can help! Use a resource such as @Mint to track!
Katie from Navicore: Budgeting is so important because it improves your short-and long-term financial habits, helps you manage debt and save money, and enables you to reach your financial goals. https://bit.ly/3Mkx6q0
Jessica Dickler: Budgeting is the first step to living within your means so you can save for retirement and college, not to mention reducing your financial stress!
2. For many, paying off outstanding debts can feel like an impossible task to undertake! 😱 What are the best strategies for paying off debts, so you can be more financially free? What lessons have you learned from acquiring and paying off debt?
Katie from Navicore: There are many different debt payoff strategies to pick from. You have to look at your own personal situation before selecting a debt payoff strategy right for you. https://bit.ly/38UlATG
Jessica Dickler: With interest rates on the rise, I am partial to paying off the debts that rack up the most interest first (likely your credit cards) - aka the avalanche method.
Courtney McQuade: Using a tracking system will help you see the big picture so you understand where you stand, and what you need to pay (extra) to get things paid off. It is a huge relief to be able to see the light at the end of the tunnel! Knowledge is power!
3. Speaking of debt, let’s talk about student loans 📚💰and medical bills🩺🩹. What advice do you have for paying off student loan / medical debt? Should this be a priority in your financial plan? Is it possible to negotiate what you owe? Why or why not? And if so, how?
Jessica Dickler: Even though there’s a payment pause on student loans until September, continue to make payments to reduce the principal. If you have private loans, call your lender to find out your interest rate, monthly payments and balance and see if consolidating makes sense.
Katie from Navicore: Student loan and medical debt will vary from person to person and should be a priority in your financial plan. If you’re not actively paying off this debt, your credit score could be impacted in a negative way.
Courtney McQuade: Both can sometimes be negotiable, it never hurts to ask if you qualify for either a reduction or a lower interest rate. Both tend to be low interest so if you have other debt at higher interest rates, pay that off 1st before tackling your school and/or medical!
4. Being financially organized helps reduce stress. How can you make sure your financial first-aid kit is up-to-date? What are the best ways to stay organized? What docs should you keep and for how long? How can you make sure they are accessible in an emergency?
Amy Hampton @lonedaisymedia: Copies of important papers safely stored but accessible to those who might need them. Passwords securely saved in case of emergencies. We save our docs in a shared encrypted cloud space. Easy to access but safe from hackers. Or at least I hope so.
Katie from Navicore: Organizing your finances is a must and you should check in with your finances every month to make sure things are up to date. Avoid missed bills and maybe even sleep a little better with your finances under control.
Deb Nason: I wrote an article for @CNBC that talks about ways couples can communicate about money and stay up-to-date: https://cnbc.com/2022/03/07/if-youre-getting-remarried-here-are-key-financial-issues-to-consider.html…
5. There’s a lot of people DIYing their own financial planning. What are the best resources to improve your own financial planning and increase your own financial literacy? What are the benefits of working with a financial advisor?
Deb Nason: I always tell people – don’t go it alone. Work with a financial pro for ADVICE. You don’t know what you don’t know. For example, diversification and rebalancing.
People are often one signature away from making a bad decision, whether it’s about employee benefits, debt management, insurance, goal-setting, annuities. Advisors know how to interpret the fine print and can tell you if something is a good or bad decision.
Also, if you don’t work with a financial advisor, you could be leaving money on the table – advisors can often access investments that you can’t, and they are more knowledgeable about the market, investment options in general, and tax minimization strategies. I put together a simple, but detailed guide to help people find the professional help they deserve: https://findtherightfinancialadvisor.com
Winnie Sun: There are a lot of great resources online to get your started. For example, our YouTube channel: https://bit.ly/2loiaNc @CNBC @YahooFinance, and many more. The more you read about personal finance, the more questions you’ll know to ask.
6. Time for a credit-check-up! ☑️ How often should you check your credit? What should one be looking for on their credit report, other than the credit score number? What are the best tips for building a better credit score and improving your credit health?
Katie from Navicore: Check your credit report once a year through the three major credit reporting agencies: Equifax, Experian, and TransUnion. You should be looking for any errors on your credit report or fraudulent charges.
Jessica Dickler: The best way to boost your credit score comes down to paying your bills on time or reducing your credit-card balance, but there are even simple fixes that can have an immediate impact, such as checking your credit report for errors.
Courtney McQuade: I've set up an alert system through @creditkarma so I always know if something has made an impact on my score. My CCs also offer monitoring which is nice! Keep your very first credit card forever for a length of time, pay on time, and keep your balances low.
No one wants to talk about passing, and hopefully, it doesn’t happen anytime soon!🤞However, it’s important to prepare and have these convos to protect your legacy. How do you discuss this with your loved ones? What steps should you take for a smooth transfer of your wealth?
Katie from Navicore: Talking about passing can be super difficult with your loved ones, but it's important to be prepared. Sit them down and discuss your thoughts for your will with them. This will let them know what they're in for in the event of your passing.
Jessica Dickler: Money is something most people don’t talk about enough but these conversations are necessary, so everyone is on the same page. Plus, it doesn’t have to be depressing or taboo. Make it a habit and have regular “check ins” instead.
Courtney McQuade: Another conversation to have with your financial advisor, and consider an estate attorney to create a trust to protect your assets and make it a smooth process for your heirs. Once everything is set, bring your family in to meet with your advisor & discuss.
Deb Nason: You can look at it as something morbid, or you can look at it as a way to show how much you LOVE and TRUST your heirs. Here are a couple of article I wrote for http://CNBC.com on the subject: https://cnbc.com/2022/03/01/when-it-comes-to-a-will-or-estate-plan-dont-just-set-it-and-forget-it.html…
and https://cnbc.com/2017/10/24/think-youre-not-rich-enough-to-need-a-will-think-again.html… #WinnieSun As one of my sources said, “A will is not for you, but it is for those you love and leave behind. When you die, someone has to settle your estate if you own anything.” Even for a small checking account and a car, someone has to distribute the account & change title to the car. ... minus a will, someone will have to go to probate court, prove a relationship to the deceased and be assigned by a judge to serve as executor.
Should personal finance and taxes be taught in school? How can we help implement this in the curriculum for future generations? For now, how can you teach kids in your life about $ to enhance their financial IQ? What are the best resources to tackle this topic?
Jessica Dickler: Studies show that students who are required to take personal finance courses starting from a young age have better average credit scores and lower debt delinquency rates as young adults.
Katie from Navicore: So far, only 25 states in the US have introduced legislation that would add personal finance education to their curriculum. Personal finances and taxes are needed to thrive in life and therefore should be taught in schools. https://bit.ly/3rEn37o
Winnie Sun: Yes! Thank you for asking. I created a course specifically for this! If you need help teaching your kids about money, I encourage you to check it out: https://bit.ly/3Mf8YFa
We’re so glad you took the time to learn more about financial literacy with us but hope that you never stop learning beyond this Tweet Chat. The importance of financial literacy lasts a lifetime, so keep in mind that it’s a continual journey. Keep learning, keep growing!
To stay updated for more content like our Twitter Chats, follow @WinnieSun! Have a question for Winnie? Use the #AskWinnie to get your questions answered!
