Understanding basic money skills can go a long way when it comes to living a healthy financial life.
BOSTON (PRWEB) December 22, 2017
Understanding basic money management skills are extremely important for Millennials’ long-term financial stability and success. Strong financial literacy means understanding concepts such as budgeting, checking and savings accounts, credit, and investments and the most beneficial ways to spend your money. National nonprofit American Consumer Credit Counseling (ACCC) provides simple steps to help Millennials become financially literate.
“Understanding basic money skills can go a long way when it comes to living a healthy financial life,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling, based in Newton, MA. “The more financial literacy Millennials have, the easier it is for them to avoid excessive debt and prepare for the future.”
According to a survey by the National Endowment for Financial Education and George Washington University, only 8 percent of Millennials claim they have a high level of financial knowledge. Two-thirds of the respondents admit to having at least one long-term debt, such as a car loan, student loan or home mortgage. When asked about an emergency fund, only 32 percent say they have enough for three months of household expenses.
With a few simple steps, it is possible for millennials to become financially literate.
1. Learn how to budget – Learning how to budget is the cornerstone of responsible financial planning. Creating and maintaining a budget shows precisely how much money you have and where it’s spent. A budget will help you find ways to save money and plan for the future.
2. Understand credit – Learn the most important concepts of credit, including why credit is necessary, the information used to calculate a credit score, and how to improve a credit score. It’s also crucial to understand the best strategies for paying down credit card debt.
3. Create a checking/savings account – Creating a checking and savings account is one of the first actions you can take to keep your money safe and make paying bills easier and more convenient.
4. Understand debt/loans – There are some student loan repayment options to help you pay off student loans promptly that will also work with your budget. Repayment plans can be changed at any time, even if you’ve been assigned a specific plan when you first began repaying the student loan.
5. Understand the danger of identity theft – Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number, or other identifying information without your permission to commit fraud or other crimes. The best way to help prevent becoming a victim of identity theft is to safeguard your personal information.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling and student loan counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at http://www.ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx