April is full of blooming flowers, filing taxes, baseball, and financial literacy. Since the passing of Senate Resolution 316 in 2004, April has been officially recognized as Financial Literacy Month. This 30-day promotion was first proposed as an effort to encourage Americans to become more educated about personal finance. Today, National Financial Literacy month is celebrated by many of the country’s largest financial institutions and non-profit financial organizations through promoting educational content, social campaigns, and on-site company events.
Now, we know that poor personal finance is a nationwide epidemic, but is a month of publishing educational content and hosting lunch-and-learns really effective in changing people’s financial behaviors?
The answer is no — and here’s why: 78% of Americans live paycheck to paycheck. For most, this means that even a $500 unexpected expense (think: a medical bill or a faulty transmission) would be completely unaffordable. That’s not to mention, healthcare costs are rising right along with the number of people who aren’t saving for retirement and the number of people who are accumulating debt. The fact is, everyone has different factors or circumstances that make up their financial health. Financial education is not a one-size-fits-all approach. While education is a crucial puzzle piece of financial wellbeing, it is simply not enough. Being financially literate gives people confidence, but working toward financial wellness or wellbeing means using that confidence to make sound financial decisions and live a financially fit lifestyle.
So, how can you as an advisor get your plan participants moving in the right financially well direction? This answer is simple. Personalized financial planning powered by you, fueled by + financial wellness technology. By working with a FinWellTech partner, you can provide your clients with a personalized digital experience and tools to help them budget, save, and track their spending - all backed by your advice and accountability. Plus, plenty of educational articles to give them the confidence they need. Happy Financial Literacy Month!