Financial literacy eases stress and unlocks opportunities

Financial stability is essential in reaching short- and long-term financial goals and achieving dreams, whether that be buying a vehicle, owning a home, starting a business, attending college or retiring comfortably.

But statistics are telling us that financial literacy is lacking across the United States and the average American is struggling to develop healthy wealth management skills.

More than three in four American adults say thinking about their financial situation makes them anxious, while 52% have difficulty controlling their money-related worries. Over the past few years, these financial struggles and stress have been amplified by the economic impact of the COVID-19 pandemic and rising inflation. Now more than ever, it's vital to raise awareness of financial education opportunities.

At the Illinois Bankers Association, we want to remove some of the stress surrounding money management by providing financial education tools to everyone, which is why we pause each April to recognize and celebrate Financial Literacy Month. Established by Congress in 2004, Financial Literacy Month brings together financial institutions, government agencies, nonprofit organizations and other entities with the goal of expanding the personal finance skills of all Americans through accessible education. Financial literacy is crucial to building a foundation of skills to manage money effectively by saving, protecting and investing wisely.

While financial illiteracy impacts those of all ages and socioeconomic statuses, minority communities are particularly impacted, driving the racial wealth gap. Financial Literacy Month targets the most vulnerable populations including low-income communities, young adults and the elderly.

Financial institutions across Illinois are offering education opportunities and collaborating with government entities to target underserved communities where expanded access to these resources is most needed.

It is vital that we teach these healthy budgeting and saving skills to our youth and young adults to break the cycle of financial illiteracy. Far too many children aren't taught about even the basics of spending, saving and budgeting. Studies show 74% of American teenagers lack confidence in their knowledge of finance.

Illinois banks are doing their part to integrate financial literacy into education opportunities, sponsoring several programs that pair banks with schools across the state.

Banzai is a web-based financial literacy program for all ages and groups, including K-12 schools, community programs, employee onboarding, and even families. This award-winning, interactive content platform is utilized by over 80,000 teachers in over 50% of U.S. schools. Another resource being used in Illinois schools is the Stock Market Game, which introduces young people to saving and investing through a simulation of the stock and bond markets.

One fourth of Americans say they don't have anyone they can ask for trusted financial guidance. We want Illinoisans to know that banks have resources and knowledge that can improve your situation, and we want to help you. Reach out to your bank and ask what sort of financial literacy programming they offer. Most banks provide free education resources for people of all ages. The federal government offers the FDIC Money Smart program and has additional free online resources at www.MyMoney.gov.

Stress and anxiety about money are incredibly common, but many people feel ashamed and alone in their struggle. Financial literacy can ease this stress and replace it with confidence. It's never too early to start learning about financial wellness and it's never too late to start improving your personal and household financial stability.

• Randy Hultgren is president and CEO of the Illinois Bankers Association.