Spring Into Financial Literacy

April is Financial Literacy Month and, at Grand Savings Bank, we’re empowered to help our community members Live Grand. Continue reading below to see our tips for improving your financial literacy today!

Use or Lose Paid Subscriptions

Paid subscriptions offer convenience and a variety of benefits, provided you’re keeping up with which services you use (or even need). That $1.99/month mobile app might have been a daily staple several years ago, but if you aren’t using it regularly, why are you still paying for it? Most of us have at least one – and often, more – active subscription that we haven’t yet cancelled because it isn’t especially impactful on our monthly finances. This can lead to hundreds (or more) of dollars going towards unused subscriptions each year. Take an inventory of your paid subscription services and determine which can be cancelled! Your piggy bank will thank you later.

Invest

If you aren’t taking advantage of employer-provided retirement or health savings accounts, you should be – but those aren’t the only ways to invest in your family’s future. There are countless investment opportunities for all kinds of financial situations. You don’t need to be wealthy, or even have a significant financial cushion, in order to begin your journey in the world of investing. Thanks to compound interest, your pennies can grow into serious dollars. Say you have $100 and it earns 5% interest each year. At the end of the first year, you’ll have $105. At the end of the second year, you’ll have $110.25, because not only did you earn $5 on the initial $100 deposit – you also earned $0.25 (or 5%) on the $5 in interest.

Pay Yourself First

It may seem counterintuitive to prioritize paying yourself before doing any other spending, but it’s actually a crucial component to financial literacy. While it’s critical to pay your bills on time, saving for your future can’t fall to the bottom of your priority list. If you make a habit of depositing or moving money into your savings account every time you’re paid, it’ll be easier to avoid using those funds on everyday expenses. This practice can help you foster a habit of saving that will add up over time and offer security in times of unexpected or larger expenses.

Set Goals

Be intentional (and get specific!) in setting financial goals. Select a date on or by which you hope to have saved a certain amount or to have paid down a certain amount of debt. Note the amount you are aiming to save or pay down by that date, and then put a plan in motion to achieve it!

Track Your Expenses

The greatest financial gurus of today’s day and age can all agree on the importance of tracking your spending. A common misconception is that expenses only need tracking when we’re in “tight” financial situations to ensure we aren’t over-spending in certain areas. Turns out, tracking your expenses – regardless of the health and/or comfort of your current financial situation – is a vital component to financial literacy. Tracking your expenses not only keeps you abreast of them; it allows you to remain in constant “communication” with your checks and balances. Think of it as your secret weapon to remaining fluent in your own finances. Use a spreadsheet, notebook, or whatever medium you prefer. The most important thing is that you are logging expenses by category (i.e., gas bill, groceries, etc.), cost, and date.

Financial literacy is crucial––not only to the management of your family’s finances, but to passing on those same skills and resources to future generations. The Grand Savings Bank team prioritizes spending time in local schools for just that: to teach young people about financial literacy. Plus, we’re always willing and available to help with any questions our customers may have! We’re committed to helping our community members navigate life’s ever-evolving financial landscape to equip you with the tools for financial peace of mind. Visit a branch near you and get started on your financial wellness journey today––and don’t forget to follow us on all major social platforms for more financial wellness and literacy tips!