Did you know that the month of April is dedicated to helping people with how to manage their money and credit. It focuses on how important it is to live on a monthly budget and track where your money is going. It promotes reducing debt, savings, and how to invest your money for the maximum return over time.
Key aspects of financial literacy include goal setting, credit education, credit protection and acting on managing credit. You should set clear financial goals for saving and investing. In credit education you should increase your knowledge to make sound financial decisions. Read books, listen to podcasts, and go to seminars to help improve your financial skills.
Beware of all the credit scams and frauds that are out there to protect yourself from becoming a victim. As of the last survey in 2023, more than 62 million American’s experienced some type of credit card fraud. About one in three people in the U.S. experience financial frauds, totaling $6.2 billion in unauthorized credit card use.
How crazy is that?
On budgeting your money try the 50/30/20 Rule. This is a popular budgeting strategy that allocates 50 percent of your net income to your needs, your mortgage, rent, groceries, and utilities. Thirty percent of your check goes towards your wants, eating out, entertainment, and hobbies. Most important 20 percent of your check goes toward debt repayment and a monthly savings program.
Americans are in a budgetary crisis. As of March, Americans owed a total of $1.39 trillion dollars in credit card debt. The average household currently carries $11,500 in credit card debt. The average debt per cardholder per individual is $6,500. People need help with how to manage their money and credit. If they were to miss one paycheck it could take them down.
I am so shocked that a lot of people cannot add or subtract. I was at an eatery the other day and my bill was $18.50; I gave the young man a $20 bill and 50 cents. He had to call a manager; he had no clue what my change was. This is why I wrote my book, “The Key to Understanding Credit,” by J.D. Henry. It is necessary for young adults, or really anybody.
J.D. Henry is a lifelong businessman with experience in management, retail sales, services and asset management. He also is the former Walker County Precinct 4 County Commissioner. He hosts a podcast on YouTube and wrote “The Key to Understanding Credit.” More information can be found on www.thekeytounderstandingcredit.com.