LUFKIN, Texas (KTRE) – April is National Financial Literacy Month, and many resources are available for people to learn and understand what financial literacy is.
“Every spending choice that you make impacts your long-term future,” Joseph Ceasar, the founder of Legacy Institute for Financial Empowerment said.
Managing personal finances can be different for every home and can involve different components like budgeting, saving, and investing.
“It is a month where we just advocate for and support personal finance across all grade levels and groups of people,” Susan Doty, the executive director for UT Tyler’s Center of Economic Educational and Financial Literacy, said.
When it boils down to it, financial literacy is knowing how to effectively manage your money. It’s a topic that many financial experts agree should be taught at a young age.
“Explain to them the difference between needs and wants, goods and services, what a budget is. That way your kids grow up knowing those things are done on a routine basis, Ceasar said.
There are many resources available to help with learning.
To add to them, UT Tyler’s CEEFL plans to hold lectures and programs, and visit schools throughout the month.
“It’s building awareness and building a skillset and doing it with schools and businesses and families in communities,” Doty said.
Ceasar said people will often come to him in crisis mode, after financial damage has been done. This is why he recommends for people to learn well before it gets to that point.
“It’s like bad eating; you don’t want to wait until you’re overweight and have high blood pressure to begin healthy eating practices. You want to start healthy eating practices when you’re already healthy,” Ceasar said.
He said the best way to start taking control is by learning what a budget is, mapping out our own and being strict with your day-to-day spending.”
“Dave Ramsey uses the envelope system where you would withdraw say $200 and that’s all you have to spend for groceries. So, when you get to that grocery line and that bill is $201.50 then you need to take something out of your basket versus finding a way to come up with the rest,” Ceasar said.
Ceasar said next on the list is keeping a balance sheet. It’s done by listing everything you have, assets and liabilities. After you figure out the two, then you’ll subtract your liabilities from your assets and that determines your net worth. He said if you have more liabilities than assets then your balance sheet is weak.
“Investing creates more net worth while overspending creates less net worth, and saving versus consuming is going to create a stronger balance sheet,” Cesar said.
But add the end of the day, effectively managing your finances can help with long-term financial plans.
“We can help our families, our entire family tree multiple generations down because of decisions we make today,” Ceasar said.
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