Spring clean your finances: reflecting on Financial Literacy Month | Opinion
Tax Day was April 18 and April was Financial Literacy Month. It was the natural opportunity for many people to take stock of their financial situation and plan for the months ahead to ensure their financial house is secured moving forward.
Unfortunately, preparing and getting organized is not as simple as it seems - particularly in recent years as the pandemic has created economic uncertainty and inflation has surged to numbers not seen in decades.
For younger age groups, this is their first exposure to the complexities of finances - both the aspects that are within their control and those - like cost of living, grocery hikes and gas - that are certainly not.
Planning for a financial future can be stressful and cloaked in shame, even when circumstances aren’t controllable.
But there is always a path forward to maintain the upper hand on finances and preparing for a bright future, regardless of age or economic status. At the Tennessee Credit Union League, we believe that each Tennessean deserves access to high quality financial services - starting with financial education.
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Knowledge is power
Financial literacy is paramount to our members’ overall well-being, and that’s why we promote financial education throughout the year. Through our programs, we reach hundreds of members every month with outreach on important financial literacy topics ranging from budgeting 101, interest rate education and credit score ratings - to scam detection, particularly in vulnerable populations including college students and the elderly.
We are proud that our financial literacy programs are supported by extensive online class availability as well as in-person training to reach our more than 2 million members statewide with proven results. One key metric shows that our members are 17 percent more likely than non-credit union customers to have $500 in savings - especially in rural communities.
Unfortunately, people without any savings, which recent reports show includes up to six in ten Americans, are particularly vulnerable to future financial difficulties and even financial emergencies.
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Preparing for the worst
Our programs address why planning and preparing for tough times is critical and gives our members important tools to get on sound financial footing. Our fundamental belief is that accessibility to banking, whether rural or city settings and regardless of income bracket, provides essential resources. For credit union members, these services include widely available access to financial benefits including lower interest rates, budgeting and other valuable resources to help them live a secure lifestyle. It starts with financial literacy and comes in many forms and through numerous unique programs like our micro-lending program in Chattanooga with nonprofit partners, that we have tested for that local market, and found success.
Through the Tennessee Credit Unions, we will continue to prioritize our members - current and future - with the best tools available to ensure a secure future. We believe that starts with a strong baseline of financial literacy, and welcome the annual opportunity to revisit best practices and adapt to new opportunities with our more than 2 million members statewide.
For more information, visit https://www.advancingtncommunities.org
Fred Robinson, CEO of The Tennessee Credit Union League - Fred has served as President and CEO of the Tennessee Credit Union League since 2012. His career-long dedication to credit unions began with his first position at the Tennessee Credit Union League in 1983.
This article originally appeared on Nashville Tennessean: What Tennesseans should know to have better financial literacy
