Why The Journey Forward Believes Financial Literacy Matters
Last fall, I attended a housing industry conference, and one of the attendees shared that they did not believe in "financial literacy." I almost fell off my chair. How can you expect personal success and not believe in the power of financial literacy?
One of the primary services that The Journey Forward offers is our Financial Literacy education and one-on-one financial counseling. I have long referred to it as "Financial Capability" rather than "Financial Literacy" as it is more respectful to those seeking our education and counsel. Understanding the basics of money management is the bedrock of not only financial wellness but critical to living a self-sufficient life. I believe that everyone needs Financial Capability education.
Financial literacy refers to the knowledge and understanding of various financial concepts and skills necessary to make informed and effective financial decisions. It encompasses a range of topics, including budgeting, saving, debt management, and understanding financial products and services.
Why Financial Management is Essential
We must be equipped with the skills to manage our personal finances effectively. Understanding how to create a budget, track expenses, save for goals, and make informed decisions about spending and investments is life-changing.
When we understand money management, we are better able to avoid debt and financial distress. Understanding how debt affects your finances is one of the most challenging pieces of The Journey Forward counselors' work—working with clients who are so overwhelmed by debt that they have lost hope.
When we understand concepts like interest rates, credit scores, and debt management strategies, we can make informed choices that help us avoid excessive debt. It is debt that undermines our financial goals and causes extreme financial stress.
When we know better, we do better
Financial capability education allows us to plan for the future. Understanding money management enables us to plan for our long-term financial goals, such as homeownership, education, retirement, or starting a business. We must understand our financial options and evaluate the pros/cons of those options, compare interest rates, fees, and terms, and make informed decisions regarding savings accounts, loans, credit cards, and investments.
With Financial Capability comes financial security and true independence. I firmly believe that financial knowledge empowers us and allows us to take control of our lives—not just our financial lives—all areas of our lives. Through The Journey Forward's Financial Capability Program, clients learn the importance making financial decisions that align with what they value and their long-term financial well-being.
Our workshops are offered virtually, and can be found on our website. Workshops and one-on-one counseling services are free to everyone. If you are interested in partnering with The Journey Forward to bring Financial Capabilities or Housing Counseling education to your clients or constituents, please email us. We welcome the opportunity to be out in the community and share what we know and what we do.
Making better financial choices, avoiding pitfalls, and improving overall financial well-being can lead to a far richer life that has much more to do with peace of mind than it does with money!
Annemarie Fitzpatrick, Executive Director
The Illinois Housing Assistance Fund Application Portal remains open throughout September. Please share this vital information with those you know who are at risk of losing their homes.
The Journey Forward
223 West Jackson Blvd
Suite 1116
Chicago, IL 60606
Phone: 312-752-2094
www.thejourney-forward.org