April is Financial Literacy Month – Take Action!
by Colleen Dailey
In an effort to raise public awareness about the importance of financial education, Congress and a long list of governors and mayors--including DC’s own Mayor Fenty--have designated April as Financial Literacy Month. Which raises the question: what does it mean to be “financially literate”? Are Americans spending more than they are earning--a trend that was last observed during the Great Depression--because they don’t know any better, or is this dangerous behavior an indication of larger and more serious structural problems in our economy?
I tend to think that it’s not an either/or answer. If we look to our President and Congress for model behavior, it’s easy to draw the conclusion that deficit spending is okay. I mean, is it any wonder that we’re running up our credit card bills when the U.S. Treasury is trillions of dollars in the red? But it is also true that a growing number of Americans struggle to grasp even the most basic financial principles that will allow them to manage their money well and make wise investments in their future. We may not be able to rein in government spending this month, but we can take a step back and take an honest look at our own personal finances and make some healthy adjustments.
To help you do just that, Capital Area Asset Builders (CAAB) and several nonprofit, government, and private sector partners are launching a citywide campaign called DC Saves. Modeled on the Consumer Federation of America’s national America Saves campaign, the goal of DC Saves is to encourage and motivate all Washingtonians to take financial action – by reducing debt, saving money, and making investments that build wealth. Individuals who enroll as DC Savers will have access to the following benefits and financial supports, all of which are free:
- Special DC Saves accounts at participating financial institutions (all accounts feature no monthly or minimum balance fees for at least 12 months.)
- One-on-one counseling through participating credit and housing counseling agencies.
- Seminars on a wide range of financial topics, including: credit repair, buying a car or home, saving for education or retirement, investing wisely, and insuring your investments.
- Subscription to the American Saver quarterly newsletter.
- Advice (by email) from Certified Financial Planners and Certified Public Accountants
- Access to a wealth of financial information through the DCSaves website, www.dcsaves.org (Note: website will go live in mid-April)
Enrolling in DCSaves is easy: all you have to do is identify a specific savings goal, make a deposit to a savings account each month (or make a debt payment), and keep us posted on your progress. In return, we’ll do our very best to give you ongoing support and advice to help you achieve your goals.
So what are you waiting for? Your debt isn’t going to disappear by itself, and your chances of winning the lottery are about 1 in 14 million. But if you commit to saving automatically every month, you can grow your bank account to six or seven figures. Isn’t it time to start saving?
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For more information on DC Saves, call 202-419-1442
or visit www.dcsaves.org (website launches in mid-April).
If you’re not a DC resident, you can look for your local campaign or join America Saves at www.americasaves.org.
