April is National Financial Literacy Month

April is National Financial Literacy Month–the perfect time for you to explain to your clients the importance of establishing and maintaining healthy financial habits. Doing so will help them manage their finances more effectively, and hopefully, save enough money to buy your products and services.

In March 2004, the U.S. Senate passed Resolution 316 that officially recognized April as National Financial Literacy Month. Many organizations and business professionals promote the month by holding promotional events and creating educational materials that focus on teaching consumers how to effectively handle money and deal with debt.

To support the mission of National Financial Literacy Month, Money Management International, a nonprofit credit and debt counseling firm, has created a microsite featuring a step by step process for improving financial wellness. For more information on how you can help your clients enhance their financial literacy, visit www.FinancialLiteracyMonth.com.

Numerous studies have revealed that financial illiteracy is a major problem in the U.S. Many consumers have enormous personal debt and little or no savings, and often are unaware of the financial consequences of spending irresponsibly. People who have low literacy rates also lack the disposable income they need to work with a financial advisor and often place themselves and their families at serious financial risk.

In fact, according to an MDRT study released last year, among Americans who have never hired a professional, less than half (46%) have a retirement plan or emergency fund, only 19 percent have a long-term financial plan for the future and 46 percent have life insurance. This is in contrast to the 21 percent who have hired a financial planner. With these, 77 percent have a retirement plan or emergency fund, half have a long-term financial plan for the future, and 63% have life insurance.

So start participating in National Financial Literacy Month today–you will be doing your clients and your practice a world of good!

Ayo Mseka
Editor-in-Chief