We’re way past financial literacy month, but that does not mean your financial planning has to stop.
With everyday life comes seasons of ebb and flow, whether that is enjoying hot chocolate on a wintry day, or appreciating a wool-knit sweater amid the crisp fall period. One month we can be seen dieting for the next summer vacation, and the next month we’re feasting at the annual family dinner. This same predicament can be said when we approach our finances.
While most know the month of April as financial season, the conversation around money management oftentimes disappears soon after. Due to this, financial planning usually becomes a short-term priority rather than a consistent habit.
Though we should be making informed financial decisions everyday, we’re all prone to kick it under the radar once new environments approach us. A solution to this? As one financial professional explains it, people need to have financial consciousness, or a mindset that helps federal workers understand why they’re making money decisions in the first place.
“If financial literacy is the user manual, financial consciousness is the reason you opened the book. One without the other doesn’t get you very far. We keep handing people tools but not showing them why they matter and that’s why the same advice keeps falling flat. Financial literacy teaches what to do. Financial consciousness teaches why we do it, and that’s the difference between temporary effort and lasting change,” says Michael A. Scarpati, CEO of RetireUS, a company helping individuals with financial wellness.
Overall, the state of financial literacy in America is weak, but at the least, most admit they are financially unaware and anxious. In a 2024 financial survey by the National Foundation for Credit Counseling, 47% of U.S. adults said they give their finance knowledge a grade of “C” or worse. Furthermore, another source explained that on average, 30% of Americans describe their relationship with money as “stressful.”
With so many folks financially ignorant and worried, that is why having a conscious outlook is important to ensure long-term stability and security. Instead of repeating the cycle when April rolls around, we need more conversations about money every single day.
On an upward trajectory, however, there are easy ways to maintain financial consciousness, and it starts with a simple understanding of your current situation. How much do you have in savings? What is your credit score? Do you have student debt? What expenses are you expected to pay monthly? These are some of the beginning questions you should ask to help you stay proactive and informed about your finances.
Another way to build financial consciousness is to seek a professional who can give you smart advice such as how to invest, ways to save, and what happens when you retire. While currently, only 27% of Americans use a financial advisor, says YouGov, many others are left to navigate these important decisions on their own.
Similarly, making it a habit to visit your finances regularly can be a simple way to stay vigilant about your money. This could look like a monthly “check-in” on your bank account to see where you stand, or setting a reminder about when your next big bill is due. Perhaps it could also look like creating a spreadsheet that lays out all your expenses in one clean place.
Keep in mind that financial planning is not about perfection, and it is not something you are going to solve immediately. When it comes to money, know it is okay to take time and seek support when you need it.
As seasons change and life continues to evolve, your finances will too. But if you commit to staying financially conscious, you’re not just putting your financial life under the rug. Rather, you are acting with purpose to live happier in the long run.