April 01, 2012
National Financial Literacy Month
In 2004, the government officially recognized April as National Financial Literacy Month: a month dedicated to promoting financial literacy and healthy financial habits. Covenant Trust Company understands the importance of proper financial management, and we want to celebrate this month by sharing some healthy practices that can help you take control of your financial situation.
Create a budget. Without knowing what your income and expenses are, it’s difficult to determine the best financial choices for you and your family. A budget can help you figure out how much money you can afford to save and what extraneous expenses you’ll need to cut down or eliminate completely. You might be amazed by how much you spend on dining out, or what you pay in credit card interest. On the other hand, you might be pleasantly surprised by how much more you can afford to save every paycheck or tithe every week. But you won’t know until you create a budget.
Learn more about investing. Trusts, annuities, and compound interest: familiar concepts perhaps, but what do they really mean? How might they affect your wealth, your taxes, and your retirement? What are the best investment strategies for your financial situation? Make it a point to learn more about investing; you can contact one of our Financial Service Representatives to discuss how prudent investing can help you, your family, and the ministries you support.
Plan for retirement. Are you saving enough money for retirement? In addition to personal savings and social security, most people need a third source of income to supplement their retirement. If you don’t already have that third source of income, ask your employer if they have a retirement savings plan, such as a pension or a 401(k) matching program. If you can’t start a retirement account through your employer, open an IRA. For more help with retirement, give us a call – it’s never too early to start planning for retirement and it’s never too late, either.
National Financial Literacy Month might only last 30 days a year, but the lessons you learn can have a meaningful effect for a lifetime and for generations to come. Contact a local Financial Service Representative for more information on how healthy financial habits can help you support yourself, your loved ones, and your favorite ministries.