The Importance of Financial Literacy

Financial literacy is an essential part of running a healthy and stable household. Financial literacy is defined as a set of skills and understanding of how money works and how to manage and invest it in a way that ensures financial well-being. According to a 2013 poll taken by the National Foundation for Credit Counseling in 2013, over 40% of adults graded themselves as a C or below in financial literacy. Unfortunately, American women consistently score lower than men in tests of financial literacy. Since financial literacy gives people the power to make educated decisions on the household finances, it can be hugely beneficial for a household's long-term finances if women acquire this knowledge. Women who are financially literate are more likely to prepare themselves for important life events such as retirement and/or the birth of a child. They may also have an easier financial adjustment period in the event of divorce.

There are many resources available to those who wish to increase their financial literacy. Our government runs a useful program called "My Money" to help educate citizens about the five keys to financial literacy: Earn, Spend, Protect, Borrow, and Invest. More information can be found at the My Money.Gov website. Further information about making wise investments can be found at the Financial Industry Regulatory Authority (FINRA) website. Additionally, online programs such as the Mint.com program can help you track your spending and investments and are a great tool for financial beginners. The Internet can be a great source of knowledge about finances, but not all online sites are accurate and/or reliable, so be sure to stick with reputable sources such as the websites of government or major financial institutions. Enjoy your research!

Is Bankruptcy Right For You and Your Family?

In difficult financial times, it is understandable why a family would need to explore all of their financial options. If you are having trouble paying your bills or meeting your financial obligations, you may want to consider bankruptcy as an option.

It can be a difficult and trying time when your family is considering bankruptcy.

Before you decide whether or not to file, there are several things you should consider. If you do some preliminary research, the prevailing wisdom seems to be that a lawyer is necessary for all cases of Chapter 13 Bankruptcy and advised for any difficult cases of Chapter 7 Bankruptcy.

However, in 2005, bankruptcies laws changed, making it much more difficult to file for bankruptcy. You can see this in the graph below, taken from the News section of the United States Court website: