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When ignorance is NOT bliss in finances

April 15, 2015

Here’s a great idea

April is Financial Literacy Month.  Since 2004, April has been recognized by government, financial corporations, and nonprofit agencies as a time to promote the importance of financial literacy for all consumers.  It may be true that money can’t buy happiness but financial difficulties can be one of the most stressful life events.

In other words

When it comes to personal finance, ignorance is NOT bliss.  Financial products have become increasing complex.  Think about the papers you sign for a mortgage loan or the small print on a credit card fees and disclosure statement.  Do you understand credit scores, net worth, and average daily balance?

How this applies to you

It’s critically important for financial success to have the knowledge you need to make wise financial decisions.  Understanding the components of a credit score can guide your behavior to make sure that you’re doing what you need to do to have the best score possible.  Understanding net worth statements and debt-to-income ratios can help you keep an eye on your financial health.  Knowing how to read a bank or credit card statement can ensure that your accounts are in good order and help you watch for signs of fraud or identity theft.  Celebrate Financial Literacy Month by learning one new thing about money management.

To find out more

The Cooperative Extension Service is your source for reliable, research-based information to improve quality of life. Discover the latest recommendations for creating a spending plan, managing credit, building your savings and investing for the future. Learn more at www.uaex.edu.

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