Managing personal finances can be stressful. We often lose track of our finances due to the hustle and bustle of life and can end up in debt or worse. According to a study by Pew Trust, the amount of debt proportional to income has increased 80 percent in recent years. With this increase in debt, it’s important to stay informed on how to manage debt and makes smart financial decisions.
Benefits.gov is focusing on this critical issue in April to coincide with Financial Literacy Month. To help citizens establish and maintain healthy financial habits, Benefits.gov is offering some financial literacy tips below.
Commit to Change
Recognize your attitude toward money management and explore what changes you can make in your spending and saving habits. This is the initial step to better managing your finances. We encourage you to check out the Consumer Financial Protection Bureau’s Know Before You Owe resources for more information on how debt is racked up and what you can do to avoid some common mistakes.
Determine Where your Money is going and How to Reduce Spending
The Financial Literacy and Education Commission sponsors a national financial education website, MyMoney.gov, to help equip the public with tools such as financial checklists, budgeting worksheets and calculators. Use the worksheets to track your expenses and see where you are spending a little extra. If it’s groceries, you can save by visiting the Food and Nutrition page to locate food programs to help cut down costs, such as the Emergency Food Assistance Program and the Supplemental Nutrition Assistance Program (SNAP).
Obtain Copies of your Credit Report
The Fair and Accurate Credit Transactions (FACT) Act provides every consumer the right to a free credit report every year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. The National Foundation for Credit Counseling (NFCC) is a nonprofit financial counseling organization offering free and affordable financial services in person, on the phone or online.
Pay Down Debt
There are multiple ways for you to begin paying down your debts. One way to do it is to repay the debt with the highest interest first. Another way is to concentrate on paying down the debt with the smaller balance. If you have loans to repay, consider browsing the Loans category or visiting GovLoans.gov to discover resources on how to better manage your loans.
Check Up on your Insurance
Read through the services offered and covered under your health insurance along with researching the co-pays and premiums. Compare policies for your auto-insurance, disability insurance, and life insurance costs. Browse the Healthcare and Medical Assistance and Financial Assistance categories to view programs and plans that are available in your state.
Need more information to help control your finances?
Financial Literacy Month is only the beginning of improving your money-managing habits. We hope that you will take these steps to expand your financial knowledge throughout the year. For more information on financial wellness, check out our articles Start Your Path Toward Financial Wellness and Facing Your Finances. Benefits.gov encourages you to take the Benefit Finder questionnaire to find other government benefits that you may be eligible to receive.
