Financial Literacy Vs. Financial Capability Month

Happy Financial Literacy & Capability Month! If you don’t already know about financial capability, you might be wondering what this means and how you can celebrate all month long.

Let’s start with financial capability – what is it?

The U.S. Treasury defines financial capability as “the capacity, based on knowledge, skills, and access, to manage financial resources effectively.” In other words, one can know the lessons of good personal finance through and through — and yet, not be able to practice and establish them. That's the difference between financial literacy and capability – the ability to access, practice, and establish financial lessons; knowing how to avoid, identify, and report fraud is key to this, too. See account protection guide.

Though Financial Literacy Month will continue to be the widely adopted title in April each year, it’s important to understand the significance financial capability plays along with it. With literacy, we understand; with capability, we’re able to put what we understand to work.

Next, how can you celebrate?

There are many ways you can go about celebrating financial capability this month. Here are just a few financial challenges to consider making the most of it: 

• Turn up the savings. Try adding a bit more to a savings account this month.
• Cancel a subscription. Pick your priciest subscription, calculate potential savings, and see if you can go without it for one month. This will help you put its true value into perspective.
• Open a Certificate of Deposit (CD). Shop around and claim a CD. This product is great for growing savings quickly over a short time period. See BCU rates.
• Download an investment app and start saving. Have you thought about investing, but that’s as far as you’ve gotten? Here’s your nudge to start, even if it’s just a few bucks a week.
• Set a new money goal and create a plan to achieve it. Is there something on your mind? Put it on paper and create your financial plan to make it happen.
• Schedule time with an expert. Financial coaches help people like you and me make plans to achieve money goals. Debt, credit, savings, you name it – there’s a coach for it. Schedule an appointment.
• Spring ‘clean out’ your emails, followers, and callers. Block, report, and delete any suspicious or spam worthy activity in your personal feed(s) for better account protection.

Are you ready to put your personal finance knowledge and skills to work? Happy Financial Capability Month! Remember, you got this.

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