Six Ways to Get Smart about your Money with Omaha 100
By: Malinda Williams
April is Financial Literacy Month and Omaha 100 has the resources you need to get smart about your money.
A study by Moneyzine revealed that 25% of adults in the US had poor financial literacy, up 5% from 2017. Young adults and teens (Gen Z and Gen Y) know the least about managing money, with only 38% getting answers right on a money quiz. However, 73% of teens across the nation really want to learn more about handling their money better.
The question is why?
In 2018, Netflix started its “Explained” series. I often encourage clients to watch the episode called, “Racial Wealth Gap” because it overviews how America's systemic wealth gap originated from using enslaved people as wealth, a practice that placed an immeasurable value on their forced labor, amounting to more than $3 billion by 1863.
Post-slavery, discriminatory practices such as redlining and mortgage lending biases further exacerbated the wealth disparity, as government policies systematically hindered African Americans from accumulating wealth through homeownership and other means. Even after legal advancements, the persistent undervaluation of Black assets and ongoing discrimination in labor and credit markets have continued to widen the wealth gap, making it a deeply entrenched issue that reflects centuries of inequality.
Fast forward to today, and we see the effects of that wealth gap exhibited prominently, especially in the area of financial literacy and particularly in the BIPOC community.
That’s where Omaha 100 comes in. We are all about financial education and understanding, but we understand it can be intimidating and seem impossible.
Here are six straightforward steps to start managing your money in a better way.
Recognize that Wealth Can Grow Over Time: Saving a little can grow a lot over the years. Making a commitment to save even a small amount will make a big difference, especially if it’s in an account that’s specifically for later or a rainy day, like savings or retirement.
Make a Budget with Room to Breathe: Creating a budget is a big deal for managing your money, but it can’t be just any budget. It has to be a flexible guide that aligns with the way you live your life. It needs to work within the days you get paid, the days your bills are due, your regular expenses like gas and groceries, as well as saving up for bigger things you’ll need later on, like a phone, computer or car.
Work on Paying Off Debt: It's important to try and pay off any money you owe. Just like earning interest on your savings and investments, having debt usually means you are paying interest. When you are debt-free, you can save and spend your money on things you really want or need, like a home, a car or a vacation.
Start Saving Money: With each paycheck, try to save a bit. It's not about how much you save, but that you’re doing it regularly. A savings account is also a great way to avoid credit card debt because you have some cash available to pay for small emergencies like a car repair or an unexpected bill.
Invest Smart: If your job offers a retirement plan like a 401k or IRA, use it. Also, talking to a financial planner can help you find even more ways to grow your money. Wise investing can be a big boost in helping you create a financial legacy for your family.
6. Keep Learning About Money: Never stop learning about how to handle money better. The more you know, the smarter and more confident you’ll be with your finances, which is also an important legacy to leave your children.
At Omaha 100, we’re all about helping people understand money better, especially those who haven’t had as many chances to learn about it before. We are committed to ending cycles of poverty, building financial capacity and creating generational wealth.
We start by teaching important money lessons and support our clients all the way to homeownership. We're here to help break down the barriers to owning a home and being financially independent. We’re working hard to make affordable loans, fair housing and financial education accessible to all.
This Financial Literacy Month, join us in taking steps towards a better financial future. Check out the free resources on our website and start changing your money story today. You will find "What to Do to Get Approved" and "Required Items for Your Loan Application," at https://www.omaha100.org/mortgage-app.
Reach out to learn more about what it takes for you to own a home and to take advantage of the support and resources we offer. You can send us an email at info@Omaha100.org, give us a call at (402) 342-3773 or visit our website at www.omaha100.org. Together, we can make sure every family has the chance to do well and build a lasting legacy of success.
Articles that informed this post:
https://moneyzine.com/personal-finance/financial-literacy-statistics/
https://www.investagrams.com/daily/2023/09/the-power-of-compound-interest-building-wealth-over-time/
Fact Sheet: The Racial Wealth Gap in America
Explained | Racial Wealth Gap | FULL EPISODE | Netflix