This year, Money Smart Week will be observed from April 15 to 21. The week is celebrated every year in April to empower people with the knowledge and skills needed to make well-informed personal finance choices. The world of finance and banking can often seem daunting, especially if you are uninitiated or have no professional help available. We know how you feel. But, the good news is that it’s never too late to learn. Consider this week as an opportunity to educate yourself on all those difficult financial terms and get tips on how to properly handle your hard-earned money.
Money Smart Week For Students
Money Smart Week is the perfect time for students to start thinking about their future in higher education. With the cost of college being so high, it’s a great time to be getting educated on how student loans work, FAFSA income limits, student loan deferment, and work study and how to get it. Students planning for their future can make some smart money decisions that will translate to huge savings in the future.
History of Money Smart Week
Money Smart Week helps people from all walks of life to build their financial capabilities so they can secure their financial futures. Even though money has been around for a long time, it wasn’t until the 20th Century that financial literacy was taught officially for the first time. An act that had a significant impact on financial literacy was the Smith-Lever Act of 1914, which led to the creation of university programs that conducted research and taught the common public some useful practical information about several topics, including personal finance.
Money Smart Week is an annual national public awareness program organized by the Federal Reserve Bank of Chicago. It began in 2002 as a coordinated effort of over 40 Chicago-area organizations to promote financial literacy. The Federal Reserve Bank of Chicago brought these members together to pool their resources and ideas to achieve greater public awareness of the programs and services available in the city of Chicago.
Managing personal finances can seem tricky at first. It’s easy to procrastinate on these things, but once you get down to it, you’ll be surprised at how easy things can be. Remember, it’s not just about getting that bread, but also learning how to save it. Through Money Smart Week, places like libraries hold events on fathoming and tackling diverse financial issues like house purchases, renovation loans, personal spending plans, property-tax appeal processes, financial aid packages, medicare plan choice, and wills and trusts.
Money Smart Week timeline
Gift economies and bartering goods are the earliest ways of making transactions.
The first official currency, made of silver and gold, is minted by King Alyattes in Lydia, modern-day Turkey.
Paper money makes an appearance in China and soon becomes official in 1100 A.D. under the Tang dynasty.
The U.S. formalizes the currency system and, the US dollar is the official currency.
Money Smart Week FAQs
Why is financial literacy important?
It leads to effective management of money and debt which in turn leads to a reduction in anxiety and stress.
What is good financial behavior?
It means living within your means and being aware that today’s decisions will affect tomorrow’s outcomes.
What happens when we lack financial literacy?
It leads to poor financial decisions that lead to major problems such as excessive debt burdens, bad spending decisions, lack of long-term planning, poor credit, bankruptcy, foreclosure, and a variety of other serious effects.
Money Smart Week Activities
Learn about saving more money and keeping it growing. Watch YouTube videos, enroll in classes, browse through online material, and read finance articles to find out more.
Share with others the information you have painstakingly collected, so they don’t have to struggle. We guarantee that teaching your family and friends to manage their finances will make you a superstar in their eyes.
Look into your finances
Start poring over your monthly statements, bank balances, purchases, and retirement funds to get your act together! Learn that theory is only half the work done. Trust us, you’re going to feel much better once you’ve sorted out all your finances.
5 Worrying Facts About The U.S. And Money
No retirement plans
One out of every four Americans does not have any retirement savings.
The U.S. debt is off the charts
American household debt hit a record high of $14.6 trillion in the spring of 2021.
Increased cost of living
According to studies, an average American family needs to have an annual income of $597,815 to be in the nation’s top 1%
There’s wealth inequality
The top ten percent of Americans own almost 70% of the country’s wealth.
Times are changing
As of 2020, 21 states require high schools to teach financial literacy, with 25 states requiring a high school economics course.
Why We Love Money Smart Week
It makes people financially secure
Several people are living paycheck-to-paycheck with their debt piling up. Being introduced to financial literacy helps people plan better and makes them financially independent and secure.
It keeps the economy healthy
Greater financial literacy among people directly translates to smarter consumers, better investments, and a flourishing economy. It is easier for a country to execute its policies and carry out plans if its citizens are well-informed and financially prudent.
It gets people talking
People often hesitate when it comes to talking about money. Having a special week dedicated to the topic can help overcome this stigma so they can start making better decisions.
Money Smart Week dates