Celebrated during the month of April each year, Financial Literacy Month is dedicated to promoting financial education and empowering individuals to make informed financial decisions. This initiative has a rich history and plays a crucial role in enhancing financial literacy across the United States, especially in school-aged youth.
History of Financial Literacy Month
The origins of Financial Literacy Month can be traced back to the early 2000s. Initially, the concept began with the Youth Literacy Day, an initiative by the National Endowment for Financial Education (NEFE) as part of their High School Financial Program. Recognizing the importance of financial education for all age groups, the initiative quickly gained momentum.
In 2000, the Jump$tart Coalition for Personal Financial Literacy started promoting April as Financial Literacy for Youth Month. This effort aimed to highlight the need for financial education among young people. By 2003, the United States Congress showed strong support for expanding this initiative to a broader audience. Senate Resolution 316, sponsored by Senator Daniel Akaka, was passed on March 9, 2004, officially designating April as Financial Literacy Month. This resolution called on the President to issue a proclamation encouraging federal, state, and local governments, schools, non-profit organizations, and businesses to observe the month with appropriate programs and activities.
In 2005, the United States House of Representatives passed a bill supporting the goals of Financial Literacy Month, further solidifying its importance and ensuring its continued observance.
Why Financial Literacy Month is Important
A recent report from the TIAA Institute-Global Financial Literacy Excellence Center shows that financial literacy among U.S. adults has declined from 2020 to 2024. In fact, 2023 and 2024 had the lowest financial literacy rates over the past 7 years.
Financial Literacy Month can play an integral role in helping financial literacy rates rise again as learning youth turn into well-informed and financially literate adults. Financial Literacy Month strives to:
Promote Financial Education: Financial Literacy Month serves as a reminder of the importance of financial education. It provides an opportunity for individuals to learn about budgeting, saving, investing, and managing debt. With the right knowledge, people can make informed decisions that lead to financial stability and growth.
Empower Individuals: Financial literacy empowers individuals to take control of their financial futures. By understanding financial concepts, people can avoid common pitfalls such as excessive debt and poor investment choices. This empowerment leads to greater confidence and security in managing personal finances.
Address Economic Challenges: In today’s economic climate, characterized by inflation, global events, and economic pressures, financial literacy is more critical than ever. Financial Literacy Month provides resources and education to help individuals navigate these challenges and build a solid financial foundation.
Encourage Community Participation: Financial Literacy Month brings together communities, schools, non-profits, financial institutions, and government agencies to promote financial education. This collective effort ensures that resources and support are available to a wide audience, fostering a culture of financial literacy.
Support Long-Term Financial Health: Financial literacy is linked to better financial outcomes over a lifetime. Individuals with higher financial literacy are more likely to spend within their means, save for emergencies, and plan for retirement. These habits contribute to long-term financial health and stability.
At Sendero®, we believe that learning financial literacy from a young age is important and can help children become financially successful in the future. In 2024, we launched our Financial Literacy Bootcamp, designed for high school and college students. 2025 Financial Literacy Bootcamp will be held in June. Dates, details, and registration information will be announced soon – stay tuned!
Sources:
Financial Literacy Month – Jump$tart Coalition
