April holds a special place in my heart as a Financial Educator and Wealth Coach, as it marks the start of Financial Literacy Month, a time to emphasize the value of financial education and encourage individuals to enhance their financial literacy.

During this time, we are invited to reflect on our financial habits and take actionable steps towards achieving our financial aspirations.

Why is Financial Literacy Important? 

 

According to the UK’s Money Advice Service Financial Capability Survey, almost 40% of UK adults are not confident when it comes to managing their money, 11.5 million have less than £150 in savings, and nearly 9 million people are in serious debt.

Financial literacy is essential as it enables individuals to make informed decisions about their finances. This knowledge not only improves financial resilience but also helps individuals, as well as their families increase economic stability.

Where Do We Start? 

 

Step One: Increase Your Financial Know-How

 

We can enhance our financial literacy through various methods such as reading books and articles, attending workshops and courses, and seeking advice from financial advisors and/or educators, such as myself.
Personally, I love listening to financial podcasts, as well as reading financial newsletters and magazines, such as Money Week.

The KEY is investing time into reading and/or listening to financial resources, so you can gradually build your financial knowledge and expertise.

Step Two: Make A Money Plan

 

A money plan is a financial strategy that outlines your goals and how you will allocate your resources to achieve them. It helps you manage your income, expenses, savings, and investments in a way that aligns with your priorities and values.

A BUDGET is a simple tool that we can use to help us make our money plan more concrete by monitoring our income, savings, and expenses.

To make a simple budget, start by identifying your income sources and fixed expenses like rent, utilities, and loan payments. Then, allocate a certain amount for variable expenses like groceries, dining out, and entertainment. Make sure your total expenses don’t exceed your income.

You can track your spending using a spreadsheet or a budgeting app to help you stay on track.

Step Three: Start Small & Start Now

 

Take small steps towards improving your financial literacy, such as setting a savings goal, paying off a credit card, or investing in a low-cost index fund.

As you become more confident in your abilities, you can tackle more complex financial tasks.

Remember, as the saying goes, ‘The best time to plant a tree was 20 years ago. The second-best time is now.’ The same applies to financial literacy – start today and reap the benefits in the future!

Anna Orenstein-Cardona is a Financial Coach and NFEC-Certified Financial Educator (CFEI) who empowers businesses and individuals to grow their money knowledge in fun and creative ways. She worked on Wall Street and in the City of London for over two-decades, before launching her financial education business, Wear Your Money Crown®.

Find out more about Anna by visiting https://www.careeringintomotherhood.com/coach/anna-orenstein-cardona/ 

April 16, 2023