ORLANDO, FL / ACCESSWIRE / March 31, 2021 / April is National Financial Literacy Month, normally a time when credit unions and banks raise awareness about the importance of financial literacy education. Such information is especially valuable now with the economic uncertainties caused by the Coronavirus (COVID-19) pandemic.
The COVID-19 pandemic left more than 21 million Americans out of work and laid bare the fragile financial situation of an estimated three quarters of U.S. workers. The circumstances for nearly half of them has not significantly improved to date. Both the unemployment rate, at 6.2 percent, and the number of unemployed persons, at 10 million, changed little in February 2021, according to a March 2021 report by the U.S. Bureau of Labor Statistics. Although both measures are much lower than their April 2020 highs, they remain well above their pre-pandemic levels in February 2020 (3.5 percent and 5.7 million, respectively).
Working towards the goal of financial security and freedom can seem like a lofty ambition for those who are still struggling to simply pay their mortgage or put food on the table. Yet, it holds true today more than ever. Florida-based FAIRWINDS Credit Union has built its reputation on an altruistic approach to helping members achieve financial freedom. This April, the credit union marks the U.S. Congress-designated month with advice and practical tips for consumers, whether they need to rebuild, adjust or maintain their journey to financial security and freedom.
- Build an emergency savings fund to help prepare for the unexpected, like car repairs or medical emergencies. By setting aside $2.74 per day, you can save $1,000 in a year.
- Participate in your company's 401(k) or 403(b) retirement matching program to avoid leaving "free money" on the table.
- Pay off your debt, except for your house. Once the smallest debt is paid off, roll the money you were paying on that debt into the next smallest balance, and repeat. FAIRWINDS offers a new take on traditional round-up programs by letting its members apply their incremental savings as a principal payment to consumer loan accounts in a program called Change It Up.
- Once your debt is paid off, fully fund your emergency savings account to cover 3 to 6 months of expenses in case of a major life event and to avoid going back into debt.
- Connect with a financial advisor at your credit union or bank, or with an independent counselor to help you set or adjust your course to financial freedom and keep you on track to retire with confidence. An advisor can help you crunch the numbers to see how much you need to build your retirement savings.
- Set goals for future needs and start saving for them. Some tools to get you started include listing your goals and how much you need to save for them; opening a savings account; automatically transferring a portion of your paycheck into your savings; and renaming your savings accounts with the names of your goals.
7. Build your wealth by investing at least 15% of your household income in options like an IRA, Roth IRA, mutual funds, 401(k), 403(b) and others.
8. Pay off your home early by making biweekly payments. Dividing your monthly payment in half and paying that amount every other week will result in an extra full payment towards principal each year.
9. Live generously and help others by donating your time, talents and treasure. Find volunteer opportunities in person or virtually. Share your expertise with others and donate your talent to those who need help. Donate your treasure to organizations and individuals that matter most of you.
"Life's most important journeys begin with a plan, and financial freedom is no different," said Larry Tobin, president and CEO of FAIRWINDS Credit Union. "You need a goal to guide you, and a savings plan to help you stay the course and be ready for detours that come along the way. I hope these tips inspire consumers to begin their own financial journey."
About FAIRWINDS Credit Union
Founded in 1949, headquartered in Orlando, Florida, and serving over 200,000 members nationwide, FAIRWINDS Credit Union is consistently ranked as one of the best financial institutions and employers in its region. Visit FAIRWINDS.org for more information.
MEDIA CONTACT:
Kate Renner, Vice President, Marketing
[email protected] or (407) 277-5045, ext. 51221
SOURCE: FAIRWINDS Credit Union