All About National Financial Awareness Day

When’s the best time to make a new financial resolution? On January 1st? On your birthday? If you need an excuse to get back on track financially, you can begin a fresh chapter on August 14th—National Financial Awareness Day.

Think of National Financial Awareness day as your financial New Year. All those financial goals you’ve set? Now’s the time to put them in motion. And if you’re looking for a little inspiration, don’t worry. We’ve got a few ideas that’ll help you celebrate National Financial Awareness Day this year. 

What Is National Financial Awareness Day?

So, why is there an entire day dedicated to financial awareness? Honestly, it’s because there are a lot of people who aren’t financially literate. Some people don’t know how to make practical financial decisions, so they spend too much money—or they put their savings in low-yield accounts. Later on, they have to work harder to make ends meet, and they struggle in retirement.

Perhaps surprisingly, 58% of people in America have less than $1,000 in savings, and 20% of Americans don’t save any of their annual income. Half of all U.S. residents live paycheck to paycheck, and 44% of people don’t have enough money to cover a $400 emergency.

National Financial Awareness Day is the perfect day to learn about financial literacy. You can make small changes in your daily spending habits or to begin saving effectively for the future. Interest rates may be very low, but savvy investment practices can still make your money work for you. With the right principles in place, you can improve your financial outlook.

Ways to Celebrate National Financial Awareness Day

Looking for ways to make some financial changes? Luckily for you, there are lots of ways to celebrate National Financial Awareness Day. Here are just a few ideas to get you started.

Check Your Credit

Before you make any big financial decisions, check all three of your credit reports from Experian, Equifax and TransUnion. Take a look at the accounts listed on each report and look for anything unusual. Challenge any information you don’t recognize straight away.

For a quick overview of your credit, plus your Experian VantageScore 3.0, sign up for Credit.com’s credit report card. For a more in-depth breakdown of your credit, subscribe to ExtraCredit instead. With ExtraCredit you can take a look at 28 of your FICO scores, plus your credit reports from all three major credit bureaus.  

Build Your Credit

New on the credit block? If so, you probably have a thin credit file. To boost your credit profile, consider applying for a credit-builder loan or a secured credit card. Spend a little on your card—no more than 30% of your total available credit—and pay it off every month. After a little while, you’ll have a bona fide tradeline in good shape and you might qualify for better-value credit products.

Open a Savings Account

You never know when an emergency could strike—that’s why having an emergency fund is a must. Celebrate National Financial Awareness Day by setting up a savings account! You don’t need to save hundreds every month. Simply putting away $10 here and $20 there could soon add up. To put things in perspective, $30 a month adds up to $360 a year. After two years, you’ll have $720, and after three years you’ll have $1,080. 

Keep Tabs on Energy

Utility bills, like taxes, are largely inevitable. Having said that, there are things you can do to reduce your energy usage. 

Sure, these all sound pretty simple, but you might be surprised—it could make a huge difference. And if you end up saving a decent amount of money, you could add it your emergency fund.

Download a Budgeting App

Making a budget, and sticking to it, can help you save money in the short and the long term. But making a budget on your own can be hard, especially if you don’t have a lot of financial experience. 

Luckily, budgeting apps make it easier to create budgets and keep track of expenses. There a ton of budgeting apps on the market, including a decent amount of free options. Whether you’re looking for a quick analysis into your finances or a more in-depth financial plan, there’s an app out there for you. 

Handle Student Loan Payments

Millions of borrowers in America were already behind on their student loan payments when the coronavirus pandemic hit in early 2020. Borrowers whose loans were delinquent and in default got a reprieve when the U.S. Department of Education announced a temporary moratorium on collection proceedings. Those measures are currently set to end on September 30, 2021—after that, payments will resume.

If you fell behind on student loan payments before the pandemic, now’s a good time to examine repair options, like loan rehabilitation and consolidation. Not done with your education yet? If you get back on track with payments, you’ll be eligible for Department of Education-sponsored student loans again, so you can finish your degree.

The Importance of Financial Literacy

Smart investment choices, a solid budget and credit-boosting strategies can help you build a great financial future. If you’re ready to change your finances for the better, why not subscribe to ExtraCredit? If you sign up today, you’ll get a month for free—and what better way to celebrate National Financial Awareness Day?