Celebrating Financial Literacy Month & Tips

April is Financial Literacy Month. Understanding the basics of money management may help individuals make better financial choices.  Financial literacy can help with things like living within your means, staying on top of debt, and saving for the future. The 2024 State of Wealth Mobility Study highlights that “56% of Americans did not discuss family finances with their parents when they were children. ”Among those 82% wish their parents had, as it would be beneficial to have received a financial education at an earlier age.”  (Source: Fidelity Investments® Research: Americans Ready to Break the Cycle of Avoiding Family Discussions on Once Taboo Financial Topics)

Financial literacy is not isolated to our personal lives. It is also crucial for small business owners to also understand financial literacy as it is the foundation for making informed decisions in various aspects of their business. Acquiring financial literacy skills can significantly improve the operational efficiency and the overall financial health of a small business.

3 Key Financial Literacy Tips:

1. Understanding Financial Statement: These are essential tools for assessing business performance and making informed decisions. See here for some additional tips.

2. Cash Flow Management and Budgeting: Maintaining a healthy cash flow is critical for day-to-day operations, as well as understanding your cash flow projections. See here for some additional tips.

3. Tax Management: Understanding tax implications and compliance is important. Talk to your accountant regularly about tax implications and as you grow, ensuring you remain in compliance with various requirements. See here for some questions QuickBooks suggested to ask.

Additional Resources for Small Businesses:

• Small Business Development Centers (SBDC): SBA partners with nearly 1,000 SBDCs across the country to deliver personalized business advising and technical assistance. SBDCs provide counseling and training about capital access, financial management, and more.

• SCORE Business Mentors: As the nation’s largest network of volunteer business mentors, SCORE offers free, customized advice to entrepreneurs across America about financing and other important topics.

• SBA Business Guide: To help you succeed at every phase of, SBA created a free business guide. Learn about balance sheets, cost-benefit analyses, accounting methods of and much more.

Additional Resources for Everyone: 

The Consumer Financial Protection Bureau offers resources to help consumers navigate important decisions affecting their financial security.

• AskCFPB - Browse by money topic find answers to commonly-asked questions. Learn the basics, understand key terms, and find ways to take action when you have an issue.

• Money Smart for Older Adults- The Money Smart for Older Adult program can help older adults, family caregivers, and others prevent, recognize, and report scams, fraud, and financial exploitation. 

The Federal Deposit Insurance Corporation is an independent agency of the U.S. government, established by the Banking Act of 1933, to maintain stability and public confidence in the nation's financially systems. Its primary role is to insure and protect bank depositors funds against loss in the event of a bank failure, with deposits insured up to at least $250,000 per depositor at each FDIC-insured bank.

• The FDIC Money Smart financial education program can help people of all ages enhance their financial skills and create positive banking relationships. Money Smart has a long track record of success.