National Financial Awareness Day

National Financial Awareness Day, celebrated every year on August 14th, is a perfect reminder to brush up on your financial knowledge so you can live your best life financially. Whether you’re just starting out on your financial journey or looking to refine your strategies, try starting with one of the items below to boost your financial knowledge and celebrate Financial Awareness Day. 

Enhance Your Financial Awareness

1. Create or Reevaluate Your Budget

Whether you’re making a new budget or updating an old one, having a budget not only helps track your spending, your debt, and your savings goals, but also helps you understand your finances and achieve financial stability. Creating a budget doesn’t have to be complicated. For a budget to work, it needs to be something you can track, whether it’s on paper, a spreadsheet, or through an app. Here’s a simple way to get started: 

1. List Your Income: Write down all sources of income, including your salary, side jobs, or any other money you receive each month. 
2. Track Your Expenses: List your monthly expenses, including rent/mortgage, utilities, groceries, transportation, and entertainment. Don’t forget occasional costs like gifts or repairs.
3. Set Spending Limits: Based on your income, set spending limits for each expense category. Make sure your total expenses are less than or equal to your income. 
4. Monitor and Adjust: Make checking your budget a regular habit to track your expenses and make any necessary adjustments. 

2. Build Your Savings

Look at your savings — in the event of an emergency, do you have enough funds to get you through? If not, use today to set goals to ensure you’re saving for the future. Calculate your monthly expenses and develop a plan of action to ensure you have the recommended three to six months’ worth of savings. If you don’t already have an account for your emergency fund or savings, consider opening one. Park View offers a variety of savings accounts as well as a high-yield checking account to safely store your money and help you build your financial security. 

3.  Take Steps to Improve Your Credit Score

Your credit score can affect many parts of your life, such as the likelihood of being approved for a mortgage or auto loan, applying for a credit card, and even renting an apartment. Improving your credit is an important step toward better financial health, and it starts with understanding where you stand. Regularly checking your credit report is essential to this process, as it allows you to see the factors impacting your credit score and identify any errors or fraudulent activity that could be dragging it down. Once you have a clear picture of your credit situation, focus on making on time payments, reducing debt, and keeping your credit utilization low. Over time, these actions will help boost your credit score. Remember, improving your credit is a gradual process, but with consistent effort and careful monitoring, you can achieve a stronger financial future.

4. Be Aware of Common Scams

A crucial part of financial knowledge is understanding how to protect yourself and your finances from falling victim to scams. As scams become increasingly sophisticated, staying up to date on the latest techniques fraudsters are using is one of the most effective ways to avoid scams. Learn how to recognize and protect yourself from scams and visit the Federal Trade Commission website for more resources and to learn about common scams. 

5.  Increase Your Financial Literacy

According to most definitions, financial literacy is understanding financial skills and concepts such as how to effectively manage household finances, handle debt, create a budget, invest, and build savings. Understanding financial concepts empowers you to take control of your financial future. Start by educating yourself through free resources such as Banzai or Zogo from Park View. Banzai and Zogo cover key topics such as budgeting, credit scores, retirement planning, taxes, and much more. Remember, improving your financial literacy is an ongoing process. 

National Financial Awareness Day is a reminder to be financially aware and take proactive steps to improve your financial literacy. By focusing on key areas like budgeting, saving, improving your credit, staying alert to scams, and building your financial literacy, you can set yourself up to be better off financially in the future. Remember, the journey to building financial knowledge is ongoing, and every step you take brings you closer to your financial goals. Embrace this day as a chance to enhance your financial awareness, make informed decisions, and set yourself up for long-term success.