Page 48 - April 2023 Issue.indd

Skills for Life: • Who we are: Many of our • Has access to resources that
money-related decisions are make it possible to manage their
Tools Tips & resources influenced by our culture, our financial goals (“I have all the

to help you live well! community, and our values. support I need!”).
• How confident we are: Are One way we can increase fi nancial well-

From Crystal Terhune-- your we willing to act on what we ness is by creating positive financial
local Family & Consumer know, the skills we have, and habits that become part of our regular
Sciences Educator from what’s available to us? Will we routines. You might already be doing
University of Maryland track spending? Use a budget? some of these but, in the spirit of
Extension (UME) Write down our goals? Build National Financial Capability Month,
and monitor our credit? Save for here are some things you might try!
Hey there! Have you heard? April is emergencies and future plans?
National Financial Capability Month! Seek guidance, support, and • Track your spending. Th is
(But wait. . . what’s that?) more information when we need sounds simple, but it’s really

Well, ‘financial education’ used to get it? important! Write down where
your money goes— use a note-

the spotlight. The focus was on teach- • What access we have: Are book, an app, or keep receipts in
ing people about money. Th en ‘fi nancial there opportunities to get to, an envelope. After tracking for

literacy’ got attention. People needed and compare, fi nancial prod- a week or a month, review your
to understand how to use the concepts ucts such as checking/savings spending and notice where your
they learned. But just like being healthy accounts, loans, etc.? Are there money went. Are there patterns?
is more than just knowing what to eat banks and credit unions nearby Did anything surprise you? Is
and how to exercise, I bet we can agree or only check-cashing stores, your spending getting you closer

that there’s more to finances than just high-interest payday/car title to your goals? Tracking becomes
info and know-how. loans, rent-to-own businesses, a tool to learn about your fi nan-
or even loan sharks? Is there cial behaviors. You can use it to
Financial capability goes deeper, and
reliable transportation? Are find “spending leaks,” and it can

considers the complex factors of self

and circumstance. It includes the there language barriers or other help you find wiggle room in
obstacles? your budget.
human sides of our experiences and
habits, and examines the opportuni- Considering these factors, financial • Create a spending plan. A
ties (or barriers) around us. Financial capability is the combination of knowl- budget is a tool, similar to a
capability includes a combination of edge, attitude, skills, confi dence, and map, that helps you see all of
several factors: opportunities required for a person your income and expenses
• What we know about fi nan- to make financial decisions that best written in one place, and it’s

cial topics: Th e information fit the circumstances of their own life used to plan where your money
and knowledge we gain. For within an environment that supports goes each month. One way
example, knowing what a budget that person’s ability to access the fi nan- to budget is to write down all
is, or what a savings account is. cial services they need. sources of monthly income in a
Do we know what’s needed to A person that’s “fi nancially capable”: column, then write down all the

make financial decisions that expenses you have in another
• Sees value in actively managing column. Add up the column of
make sense for our own circum-

stances? their finances (“It’s important to income to see how much money
me.”); you have coming in, and add
• How we think about money: up the column of expenses to
Our financial attitudes, habits, • Knows what’s needed to make see what’s due to be paid out.

appropriate money management
thoughts, and beliefs. Th ey all If the expenses are more than
decisions (“I know what to do.”);
impact how we manage it! Do
the income, don’t panic! Th e
we see the value in managing • Has the skills to use the knowl- budget can help you prioritize
money? edge they have to act on the
so you can reduce spending in
plans they make (“I know how
• How we feel: Our emotions some categories, and increase

are often behind our fi nancial to do it.”); it in others. Adjust the budget

behaviors. Life experiences • Believes that they are able to act regularly to reflect your goals
shape the way we feel about (“I’m confident that I can do and circumstances.

money. How might our feelings it!”); and • Monitor your credit. A credit
impact the financial choices we

history is a record of how well
make?
48