Donell Edwards, Blogger
About Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service. He is also a professional speaker, freelance writer, and entrepreneur.
Know Your Money
Thursday – April 2, 2015
Financial Literacy Month 2015
Is This Your Financial Wake-up Call?
By Donell Edwards
We begin this Financial Literacy Month with a very sobering article from one of our favorite sites, MarketWatch online, entitled Most Americans are one paycheck away from the street, written by Personal Finance Writer Quentin Fottrell. Even if you are doing well financially, could you improve your skills and increase your knowledge? Remember, as revealed in yesterday’s post, much of the problem with financial literacy in America is not about a lack of knowledge, it a failure to exercise strict financial discipline and the willingness to make sacrifices. So, if you are doing well financially, congratulations! But don’t think that financial literacy should not be important to you.
However, the cold, hard fact is that millions of Americans fall into the category described in Mr. Fottrell’s article. Why? As previously alluded to, some know better, but just choose to make bad financial decisions. Then there are those who are seriously challenged because no one ever taught them basic money management principles like, how to make and use a budget, how to effectively use credit, the advantage of having a cash budget as opposed to a credit based budget, the benefits of saving, and the importance of eliminating debt and learning how to invest.
It’s all about acquiring knowledge and making the best choices. In Mr. Fottrell’s article he cites data from a recent survey conducted by Bankrate.com that revealed that 62% of Americans do not have an emergency savings fund. If you are reading this and you are asking, “What is an emergency savings fund?” Or if you do not have an emergency savings fund, you need help with financial literacy. Not only does Mr. Fottrell list the lack of an emergency fund as a problem, he also explains some of the sad consequences for those who do not have an emergency fund.
Mr. Fottrell also cites a U.S. Federal Reserve survey of more than 4,000 adults released in 2014 that revealed that “Among those who had savings prior to 2008, 57% said they’d used up some or all of their savings in the Great Recession….” Mr. Fottrell also discusses the impact of debt, the use of a budget, healthcare and much more.
Reading this article is a great way to kick off Financial Literacy Month, and should be a wake up call for many of us. Here is the link to the article:
Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:
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Disclaimer: I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.
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