Waylon Cunningham

Managing money wisely is one of the most important skills a person can have, yet many Americans struggle with financial literacy. April is Financial Literacy Month, a time dedicated to helping individuals and businesses improve their financial knowledge and make smarter money decisions. The Better Business Bureau (BBB) is committed to this mission through Financial Wellness HQ, a free resource designed to guide you through key financial topics.

Why Financial Literacy Matters

Financial literacy affects every aspect of life, from daily spending to long-term investments. Understanding how to manage money can help individuals and businesses:

Avoid debt and financial hardship

Build savings and plan for the future

Make informed decisions about loans, credit, and investments

Spot and avoid financial scams

According to the Financial Industry Regulatory Authority (FINRA), nearly two-thirds of adults struggle with fundamental financial concepts, such as interest rates and budgeting. Financial Literacy Month is the perfect time to take control of your finances and build a more secure future.

Financial wellness starts with making informed decisions about how you spend, save, and invest your money,” said Mechele Agbayani Mills, President and CEO of BBB Central East Texas. “The small, smart choices you make today can lead to big changes over time.”

BBB provides the following tips to help you manage your finances.

Create a budget and stick to it. A budget is the foundation of financial success, helping you track income, control expenses, and work toward your financial goals. To create an effective budget:

Identify your income and expenses – List all sources of income and categorize fixed expenses (like rent and utilities) and variable expenses (such as groceries and entertainment).

Set spending limits – Determine where you can cut back and allocate funds to savings and debt repayment.

Review regularly – A budget isn’t set in stone; check it monthly and adjust based on financial changes.

Pay down debt. High-interest debt, such as credit cards and personal loans, can quickly become overwhelming. However, reducing debt improves your credit score, increases financial security, and frees up money for savings and future investments.

Prioritize payments – Focus on high-interest debts first while making minimum payments on others. The “avalanche method” (paying off high-interest balances first) can save money in the long run, while the “snowball method” (paying off smaller debts first) can build momentum.

Make more than the minimum payment – Paying only the minimum can keep you in debt for years. Even small additional payments can make a big difference.

Consider debt consolidation – If you have multiple high-interest debts, consolidating them into a lower-interest loan could simplify payments and reduce overall costs.

Avoid taking on new debt – While paying down what you owe, limit new credit card use or unnecessary borrowing.

Hire a professional. Navigating financial decisions can be complex, and sometimes, seeking expert guidance is the best move. Financial professionals can provide personalized advice based on your specific goals.

Financial Planners – Help with budgeting, retirement planning, and long-term financial strategies.

Tax Advisors – Offer guidance on tax deductions, filing strategies, and financial moves to minimize tax burdens.

Investment Advisors – Assist in building a diversified investment portfolio that aligns with your risk tolerance and goals.

Debt Counselors – Provide assistance in managing and reducing debt through structured repayment plans.

Following these steps is a great start to building a solid financial foundation for yourself or your business. To explore more financial wellness resources and expert advice, visit BBB’s Financial Wellness HQ

If you’ve been the victim of a scam, please report it at BBB.org/ScamTracker. Your report can help expose scammers’ tactics and prevent others from having a similar experience.