As we approach the end of tax season, there must be a reason why April is marked as Financial Literacy Month. Well, statistics suggest it’s desperately needed!
With this in mind, we invite you to join our Financially Literate Webinar on Budgeting, Credit and More on April 28th at 7 pm Eastern. Be sure to reserve your spot for this live webinar and learn more about understanding credit and budgeting.
At Queensborough National Bank & Trust, we’re big believers in the importance of financial literacy. So much so, that we have an entire section of our website dedicated to the topic! You’ll find information about webinars and courses that help you make better financial decisions and reach your financial goals. Queensborough’s iQ University (iQU) is dedicated to building the community with the knowledge needed to confidently manage (and grow) your financial resources responsibly.
What Is Financial Literacy?
Financial literacy introduces concepts related to understanding and building financial wealth. For example, last year we provided webinars and courses to help clients think more intently about their purchases and what they mean to your overall financial situation. Increasing your financial literacy empowers you to make smarter decisions. Join us as we share with you the core knowledge needed to build your financial security.
Why Is Financial Literacy So Important?
Financially literate individuals can better manage their purchases and enhance their lives without the issues that arise from impulsive, unplanned financial decisions. By keeping a close eye on your investments and bank accounts, you’ll get a handle on your finances and build an emergency fund for unexpected expenses, such as health emergencies and major car repairs.
Whether you want to save for retirement, build a cash fund for your dream vacation, or send your kids to college, financial literacy will give you the discipline to meet these goals.
Components of Financial Literacy
Financial literacy has several components designed to increase your knowledge of money matters and debt management. Here are some of the fundamental components you'll master in your journey to become financially literate:
- Budgeting. Build a weekly, monthly, and yearly budget that takes into account your spending, saving, investing, and charitable contributions. When you create a balanced budget, it can provide the key to financial security and personal satisfaction. Your budget should leave room for savings and emergencies.
- Investing. Contrary to what many people think, investing isn’t just for those who have ‘extra’ funds. You may start by saving only your cushion change, but it can add up quickly and allow you to invest wisely, smartly. Why does investing matter? Investing can provide a way to grow your wealth faster than traditional savings accounts. It's important to learn about interest rates, diversification, risk mitigation, and various indexes that meet your needs. Learning about investment opportunities allows you to make the right decisions that work for your goals.
- Borrowing. At some point, most people borrow money for large purchases such as cars or homes. It's important to understand how interest rates work. You also need to understand payment periods and how loans are structured. Remember that credit card spending also increases your debts. So, it's important to include it in your financial literacy quest.
- Taxation. Taxation affects every part of your financial life, from the purchase of goods to federal income taxes. Therefore, it’s important to consider the impact of taxation in every financial decision you make.
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What Are the Benefits of Financial Literacy?
Here are some of the benefits of achieving financial literacy:
- Achieving your savings and investment goals
- Managing debt better
- Reducing anxiety over money matters
- Making better financial decisions
- Having the resources to make charitable contributions and achieve longer-term financial goals
Our Financial Literacy Team
Financial education leads to improved financial stability and a better quality of life. We celebrate financial literacy month each April with webinars and classes for our valued customers. Our instructors include experienced financial leaders and teachers dedicated to your success!
Meet our Financial Literacy Educators:
- Henry Leverett is the Work Banking Manager VP and Certified Financial Education Instructor. He is based in Hephzibah, GA, and uses his extensive knowledge and skills to give customers a leg up in their financial literacy.
- Tina Browning is the Coastal At Work Banking & Financial Literacy Coordinator. She is a Certified Financial Education Instructor, AVP. Based in Savannah, GA, she enjoys helping clients meet their financial goals.
- Merritt Garrett is the At Work Banking and Financial Literacy Program Coordinator for our rural region. She is a Certified Financial Education Instructor.
Contact Queensborough National Bank & Trust for more information on Financial Literacy Month in April!
Sources:
https://www.experian.com/blogs/ask-experian/what-is-financial-literacy-and-why-is-it-important/
https://financeplusinsurance.com/benefits-importance-financial-literacy
https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-literacy/