April is Financial Literacy Month! In honor of this special month, here are five easy tips to help you manage your finances.
- One of the most effective tools for preventing a large-scale financial disaster is an emergency fund. To create your emergency fund, multiply your monthly take-home pay times six to find the amount you should ideally save.
- Credit scores are the result of a compilation of several different sources of data that are available in your credit report. That data falls into four distinct categories – payment history, amounts owed, length of credit history and types of credit used. One significant way to maintain and/or increase your credit score is to pay your bills on time.
- A detailed budget is an important tool to help you reach your short-term and long-term goals. A few ways you can stick to your grocery store budget is by planning before you shop, comparing prices, and only buying the things on your list.
- One way you can illustrate the concept of budgeting to children is by using three clear jars that represent current expenses, short-term savings and long-term savings. If you want to encourage charitable giving, you can use a fourth jar. Separating cash into jars makes it easy to compare the results of spending and saving.
- As debt accumulates, interest accumulates also. Lower your total interest paid by shopping for low interest rates before borrowing and paying more than the minimum payment.
For more, browse our library of free financial resources at www.ecu.com/for-community.