August 9, 2021National Financial Awareness Day
At PEFCU, we aim to provide our members with financial education so you can live your best financial life. August 14 is National Financial Awareness (NFA) Day. It’s a great day to consciously think about your finances and make sure you’re on the right track. The origins of NFA Day are unknown, but the goal of it is to help people develop and instill good financial practices that will solidify their current financial status and serve them through retirement.
Taking control of your finances can seem overwhelming, but everyone has the capacity to learn sound financial principles and save up. Just making small changes to our daily habits can reap great financial benefits. Once we distinguish our wants from our needs and take inventory of our spending, everything starts to come together and make more sense.
Here are some interesting facts about typical American finances:
- 58% of Americans have less than $1,000 saved.
- 8% of U.S. citizens believe they will never recover from the recession.
- The average emergency savings of Millennial Americans is $2,000.
- 20% of Americans don’t save any of their annual income.
- 50% of American households live paycheck to paycheck.
- 32% of U.S. families maintain a household budget.
- Americans hold $1 trillion in credit card debt.
- 44% of Americans don’t have enough cash to cover a $400 emergency.
- 24% of Millennials demonstrate basic financial literacy.
- 40% of student loan borrowers are not making payments.
Here are some suggestions for how to observe National Financial Awareness Day:
- Invest: Instead of spending your money on a fleeting luxury, put it in a savings account or an account that will make your money grow in the long run.
- Take a virtual tour of the U.S. Mint sites: https://www.usmint.gov/about/mint-tours-facilities
- Get smart about your money: Make a budget and stick to it. It’s the perfect time to examine your finances and take control.
Finances don’t have to be confusing. It is a subject that many people find daunting but taking the initiative to learn how money works will make all your peers green with envy. There is no downside to having a little bit of financial literacy in life. They say money can’t buy you happiness. Perhaps, but not having money can surely bring you a lot of sadness. That’s why it’s so important to make sound financial decisions now so you’re not suffering later. You never know what obstacles life will throw your way, but there is no better safety net than having a nice contingency fund in your pocket.