April is Financial Literacy Month, and you’ve probably seen or heard a lot about what it means to be “financially literate.” The topic can feel daunting—often wrapped in complex terminology and an assumption that you need to be a financial expert to truly understand it. Knowing where to begin isn’t always obvious.
At Navigant Credit Union, our mission is to improve the financial well-being of the communities we serve, and education is a cornerstone of that commitment. We believe everyone deserves the knowledge and confidence to make informed financial decisions.
So, we’re asking the question: What does it really mean to be financially literate?
Start With the Basics
At its core, financial literacy is the ability to understand and effectively use key financial skills—such as budgeting, saving, investing, and managing debt. A great place to start is by understanding your personal relationship with money and taking stock of where you stand today.
Ask yourself:
- Do you think about money often?
- Is your financial situation something you plan for—or something you deal with after the fact?
- Do you regularly check your bank accounts?
- What is your income-to-expense ratio? In other words, how much do you earn versus how much you spend each month?
- How much debt do you currently carry?
- Do you budget your expenses and save for the future?
If you haven’t asked yourself these questions before, that’s completely okay. Everyone starts somewhere. Taking the time to reflect on these basics will help paint a clear picture of your current financial situation.
Move Forward With Simple Next Steps
The reality is we all use financial literacy skills every day—often without even realizing it. If you’re just beginning to take a more intentional look at your finances, don’t be discouraged. Financial literacy is about removing fear and stigma and replacing them with confidence and a clear path forward.
Here are a few simple steps to get started:
1. Create a Monthly Budget
Begin by outlining your monthly income and identifying where your money goes. Start with essentials—rent or mortgage, utilities, groceries, gas, loan payments—then allocate funds for savings and discretionary spending. There are many budgeting tools available, and you can always reach out to your local Navigant Credit Union representative for guidance. Our team lives and breathes finances and can help tailor a plan that fits your lifestyle.
2. Set Clear Financial Goals
Once you have a budget in place, think long-term. Are you paying down student loans? Saving for a home? Building an emergency fund? Setting clear financial goals gives purpose to your savings and helps keep your finances front and center as you plan for the future.
3. Build Credit and Tackle Debt
With your spending and goals defined, it’s time to focus on paying down debt. Reducing debt frees up income, improves your credit, and creates more flexibility for future financial opportunities—whether that’s applying for a loan or reaching savings milestones faster.
4. Invest in Your Future
Saving is important, but investing is essential for long-term financial health. If your employer offers a 401(k) plan, consider taking advantage of it. If not, opening a personal retirement account is a great alternative. Investing today can pay significant dividends down the road.
Above all, remember that financial literacy is a journey—not a destination. Small, manageable steps can lead to meaningful progress over time.
Navigant Credit Union is here to support you with tools, education, resources, and personalized guidance to help you succeed month-after-month and year-after-year.
