10 Essential Tips in Honor of Financial Literacy Month

Did you know that April is Financial Literacy Month? It’s the perfect excuse to get your money stuff together or at least…start trying. Money can sometimes feel confusing, stressful, and kind of boring, but understanding how to manage your cash isn’t just about crunching numbers. 

Whether you’re paying off debt, saving for a home, or planning for retirement, these essential tips will help you get closer to your goals and build a solid foundation to make your money work harder for you. Developing strong habits now will set you up for long-term success and most importantly, peace of mind! Let’s go over these important basics and make this month the start of your best financial year.

1. Create a Budget That Actually Works

Start by calculating your monthly net income (after taxes) and listing every fixed expense (rent, utilities, loans) and variable cost (groceries, entertainment). Prioritize NEEDS over wants, and set aside at least 20% of your income to savings or debt repayment. We like the the 50/30/20 budgeting rule where 50% goes to needs, 30% for wants, and 20% for savings.

2. Track Every Dollar Like a Pro

Mindless spending will derail any budget. For one month, log every purchase (yes, even that $6 latte) using a notebook or apps like Rocket Money (choose the free plan), PocketGuard, and Fudget to help you keep track. Review it regularly to identify patterns in spending that can be trimmed. Maybe you’re spending $200 a month on subscriptions you’re not even using. Cut where you can and redirect those funds to either debt or savings.

3. Tackle Debt with a Plan

Not all debt is bad (for example, mortgages), but credit cards with high interest rates can drag down your finances. Choose a payoff method that you prefer:

Snowball Method: Pay off the smallest debt first for quick wins and work your way up
Avalanche Method: Target high-interest debts first to save on long-term costs

4. Build an Emergency Fund (Literally, No Excuse)

Aim for AT LEAST 3-6 months of living expenses for an emergency fund, but here at The Money Move, we’re sticking with 12 months because you just never know. A layoff can happen anytime and you’ll need that buffer to look for another job or even take a break without stressing. You can start small, automating $50-$100 a month into a high-yield savings account, NOT a regular savings account. You should at least be earning 3.75% APY interest on your money vs 0.01% APY. 

5. Start Saving for Retirement TODAY

No matter your current age, you need some sort of retirement account because compound interest is your best friend. Take advantage of employer matches in a 401(k) because that’s free money. Open a Roth IRA and contribute the max ($7,000/yr for 2025 for under age 50, $8,000/yr if over age 50)

6. Live Below Your Means Without Depriving Yourself

Be honest with yourself and ask if you really need that item you’re thinking about buying. You don’t need to deprive yourself but just spend less than what you earn so that you can save and build wealth. Some tips to creatively cut costs:

• Meal prep to cut down on dining out or DoorDashing
• Use cashback apps like Rakuten or Fetch for online shopping/essentials
• Call to negotiate your internet and insurance bills every year

7. Plan for Big Purchases Strategically

Create a separate savings account when you’re planning for a down payment or a car, and automate your contributions so you can set and forget. The more steps it takes to access your money, the less you see it, and the more likely you WON’T spend it. Plus, research financing options when you get closer to it – a 15-year mortgage vs a 30-year one could save you over $100,000 in interest. For a new car, plan to put down 20% and then limit the loan term to 3-4 years.

8. Use Credit Wisely But Don’t Let It Trap You

Credit cards can offer really great perks, but don’t get caught up in debt. Keep utilization below 30% across all your credit card limits. For example, if you have a total of $15,000 available credit across all your credit cards, then you should keep your total outstanding balance (what you owe) under $4,500. Pay balances IN FULL each month to avoid interest. Only use a credit card when you know you can pay it back.

9. Keep on Learning!

You’re here for Financial Literacy Month, but knowledge is like a muscle, so keep strengthening it and flexing it! Keep on reading The Money Move articles, take free courses from Capital One & Khan Academy, or check out podcasts like Ramit’s I Will Teach You To Be Rich or Vivian Tu’s Networth and Chill.

10. Asking for Help is a Strength, Not a Sign of Weakness

Students can visit their financial aid office to see if there are grants or scholarships to apply for. A fiduciary financial advisor can also provide unbiased advice on your debt management and investments. Fiduciary advisors are legally and federally held to act in YOUR best interest, whereas regular financial advisors aren’t obligated to.

The Money Move

Think small steps for big impact. Financial freedom isn’t about perfection but about consistent progress. This month, commit to at least one action:

• Open a high-yield savings account if you don’t already have one (We like Marcus by Goldman Sachs!)
• Automate a $25 weekly transfer to savings (if you can do more, great!)
• Read a personal finance book (The Simple Path to Wealth by JL Collins is a popular one. Check your library or Libby app to borrow for free!)
• Tracking down everything you’ve purchased for 30 days to look for patterns

By regularly following these essential tips, it’ll turn into a habit. As you get more confident with your money, your anxiety will fade so you can make smarter decisions for your future self!