National Financial Literacy Month good time to review finances

AMES — April brings a sense of renewal with blooming flowers and warmer days, but it also serves as a reminder of financial duties, especially with federal and state income tax filing deadlines on the horizon.

In addition, April is National Financial Literacy Month, a dedicated time to enhance our understanding of personal finance and make wiser money choices, says Shaojun Huang, a health and human sciences educator with Iowa State University Extension and Outreach.

According to the National Financial Educators Council, financial illiteracy cost the average American about $1,015 in 2024. When applied to the entire U.S. adult population of approximately 240 million, this amounts to more than $243 billion lost in 2024 due to financial illiteracy.

This figure highlights the significant impact that a lack of financial knowledge can have on individuals' finances, Huang said.

The FINRA Foundation’s National Financial Capability Study provides valuable insights into financial literacy trends in the U.S., Huang said. Notably, the study observed a slight improvement in certain financial behaviors among U.S. adults compared to previous years.

For instance, 53% of respondents reported having three months of emergency savings in 2021, up from 49% in 2018 and 35% in 2009. Additionally, 54% of individuals indicated they did not find it difficult to cover expenses and pay bills, an improvement from 50% in 2018 and 36% in 2009.

“Financial literacy isn’t just about numbers — it’s about confidence. We often see that individuals face challenges with managing debt, understanding credit and planning for long-term goals. But with the right tools and resources, anyone can improve their financial literacy and feel more empowered about their financial future,” Huang said.

“Fortunately, National Financial Literacy Month isn’t just a spotlight — it’s a springboard. Spring often aligns with tax season, making it an ideal time to review your finances. Did you get a refund? Consider stashing it in an emergency fund or retirement account. Employers may also roll out financial wellness programs this time of year, offering free resources to boost your know-how,” Huang said.

The Consumer Financial Protection Bureau offers practical tools and resources to help individuals take small steps toward financial security, like creating a budget or understanding interest rates.

“Small steps — like setting a budget or learning about interest rates — can lead to big wins,” Huang added.