April is Financial Literacy Month, a time to focus on building a foundation for a healthy financial future. Beth Dotson from Chase’s Oregon Market Leadership Team recently shared some financial tips to help consumers achieve financial freedom and build generational wealth.
Dotson’s first tip was to start small, as small steps lead to bigger opportunities. No matter the amount of money someone has, taking small steps towards building a solid financial foundation is key. Whether it’s saving a little more each month, starting to save for the first time, or monitoring your credit score, these steps can help prepare for the unexpected while setting up for long-term success.
Dotson’s second tip is to establish good credit. The main elements of securing a good credit score include paying your bills on time, the length of time you’ve had a credit history, and the amount and type of accounts you have. Potential lenders will use this information to determine your credit risk. Managing your finances wisely will help you establish strong credit, a practice that will pay off when you want to make larger purchases like a car or a home.
Embracing digital tools is also vital. Apps, online goal sheets, and budget builders are a great way to manage finances. People should look into what digital tools their financial partner offers. Whether it’s credit and identity monitoring or setting up automatic transfers from a checking account to a savings account, these tools will help keep people on track with their payments and savings goals.
It’s never too early to get children started on their financial journey, Dotson said. She suggested asking a bank about opening up a joint checking account geared towards children to help them establish good financial habits. A joint account can offer features designed to help kids learn the importance of saving and meeting their financial goals, like tracking their spending, creating recurring payments and setting spending limits, or being rewarded when completing chores and earning an allowance to deposit. Once a child understands the importance of saving the money they earn, they can begin to build savings habits that will last a lifetime.
If someone needs help with their finances, Dotson advised seeking it out. Conversations and advice can be critical to improving financial health, from building a budget to more complex matters like saving for retirement. People can meet with a banker or talk to friends or family to get the help they need.
Keeping the conversation going is also important. People should talk with their partner or other family members regularly about their financial goals and how they plan to achieve them, and check in with their children to discuss their financial activity – whether it be what or where they’re spending, how much they’re earning, or their savings goal. These discussions all provide opportunities to keep money as part of their family conversations.
Establishing solid financial habits can be a lifetime process, but it’s easier if someone learns the fundamentals as early as possible. It’s never too early, or too late, to begin their journey, and this month is a great time to get started or recommit to their financial health. For more financial health tips, visit chase.com/financialgoals.
