Gov. Nathan Deal signed a proclamation making Nov. 18-22 Financial Literacy Student Outreach Week in Georgia.
Financial literacy is the set of skills and knowledge that allows individuals to make informed and effective decisions through their understanding of finances. This initiative is the brainchild of the Financial Literacy Task Force of the Georgia Society of CPAs working in collaboration with the Georgia Department of Education.
As a part of activities for the week, CPAs will visit middle school classrooms to coach eighth-grade students on financial literacy. They will conduct interactive presentations introducing the students to essential financial literacy topics such as saving, investing and budgeting.
Teaching students financial literacy skills is important because few parents talk to their kids about money, often because they may not have been taught these skills themselves.
Therefore, caring, knowledgeable adults should pitch in to help kids steer clear of debt and failure-to-save traps before they go to college or reach adulthood, where pressure can be high to overspend and under-save.
It’s not just about kids. People of any age can develop their financial literacy skill set and work toward better control of their finances.
The Georgia Consortium for Personal Financial Literacy is a not-for-profit corporation that serves as a clearinghouse for materials and resources designed to promote personal financial literacy. Their website, www.georgiaconsortium.org, includes a wealth of information and resources for anyone to begin learning about financial literacy.
In its simplest form, financial literacy is about making choices, choosing to spend and save in an intentional way instead of wondering “where did my money go?”
After some time for setup, a simple budget can be refined each month until you can get a clear picture of your spending and saving pattern. Once that pattern is known to you, you can choose to redirect funds away from impulse buys of things you really don’t need and really didn’t want.
Budgeting doesn’t increase your disposable income, but it sure feels like you have had a raise in pay once you become aware and are able to stop mindless spending. Finding the “wiggle room” in your spending can allow you to pay down debt and save. Paying down debt and getting back on track with a savings plan can bring you peace of mind like no other.
And saving for yourself might mean that you can support your favorite charity.
With the holidays upon us, the pressure to overspend may increase for adults and kids. But it doesn’t have to be that way. Ties are nice, but does your retired dad really need another one? And who buys all those ugly sweaters?
Vow to make a plan and stick to it.
Your kids will learn by your example and if you don’t give them that latest $200 gadget, they may be less disappointed than you think.
Maybe they will even do extra chores or get a job to earn some money to save to buy that gadget for themselves. That would definitely be a win-win.
Support financial literacy efforts in your community by educating yourself about financial literacy and supporting efforts to teach kids about saving investing, budgeting and spending.
Lisa Conti-Bacon is a senior audit manager with Hancock Askew & Co. LLP. She can be reached at 912-234-8243.