Jason Futch
reporter2.riverbendnews@gmail.com
Have you ever wondered where you'd be now if you had saved just a few more dollars?
It's a question many Americans ask themselves, especially as the cost of living continues to rise. Whether it's at the gas pump, the grocery store, or in your monthly bills, the financial pressure is undeniable. And with it often comes a wave of regret.
We think back to opportunities missed: "What if I had started that 401(k) sooner?" "What if I had bought stock in Nike or Apple before they exploded?" "Why didn't I take a chance on Bitcoin?"
These are the kinds of questions people tend to ask after the boom, when it's too late to buy in cheap or catch that early wave of success. But hindsight, as they say, is always 20/20.
National Finance Awareness Day, which is recognized annually on Aug. 14, is dedicated to promoting financial literacy while also encouraging individuals to reflect on their financial health and future. According to MyScoreIQ, while the origins of the day are unknown, it serves as a reminder to assess current financial situations, set goals, and learn more about managing money effectively. A similar month-long acknowledgement for youth was recognized by President George W. Bush when Congress passed Senate Resolution 48 and House Resolution 127, asking him to declare April as Financial Literacy for Youth Month. The next year, the month was known simply as National Financial Literacy Month.
So, what does it mean to be financially aware? First, be mindful of the amount of money being spent daily. Is the money being contributed to something greater? Does it help future stability within the home? The bigger question is whether it's going toward a want or a need. Explore the family budget. Is there a significant amount of savings in case an emergency arises? If someone in the family loses their job, are there enough savings to be comfortable while seeking another job? Those are some of the questions often associated with financial awareness.
Review your credit score. Could it be better? According to The Motley Fool, the average American has a FICO credit score of 715, while older Americans average higher credit scores. The average credit score for baby boomers is 746, while the average credit score for millennials is 691. Twenty-four percent of Americans have an "exceptional" credit score of 800 or above. While the average American appears to be doing alright in the credit score range, taking advantage of the financial perks it comes with, not all enjoy this comfort. If it is lower than the average score, take time to figure out what may help raise that score to the desired number.
Explore investment options. According to Gallup, around 62 percent of U.S. adults, or roughly 162 million people, report having money invested in the stock market, either through individual stocks, mutual funds or self-directed retirement accounts like 401(k)s or IRAs. According to Moneywise, younger Americans are seeking other forms of investment, such as private equity and the real estate market, as they feel traditional stocks and bonds would not provide an above-average result. However, the World Economic Forum believes more young Americans should be well-educated on the dos and don'ts of investing. Reasons young Americans may not be invested in the stock market include fear of loss, lack of sufficient funds, preference for more liquid options like savings accounts, and financial commitments such as debt.
There are other ways to stay educated on financial awareness, but the most essential tool individuals can use is self-awareness. Can that brand-new pair of Nikes wait? Can a new gaming device wait? Can that $40 tomahawk steak wait? Or is the budget comfortable enough to purchase all three? Only the person pondering these questions can make that decision.
On Financial Awareness Day, look out for your financial health and your future.