by Joe Carelli, president, Citizens Bank, Vermont and New Hampshire Each April, Financial Literacy Month offers a critical opportunity to educate consumers on the fundamentals of personal finance - from how checking accounts and credit cards work to how to establish a basic household budget. From my experiences as a financial service professional based in Vermont, and specifically as state president at Citizens Bank, I know that whether you are purchasing a home in Vermont, paying tuition at an in-state college, planning for retirement or trying to grow your business, financial knowledge is essential to your success.
Financial education is constantly evolving, so we encourage state residents to visit our new Financial Fundamentals hub which provides information on budgeting, managing debt, getting credit, buying a home, and more. In addition, residents should peruse the financial tips and advice being shared on our social media channels over the next several weeks and invite users to join us in a savings challenge.
All too often, individuals lack the financial skills to successfully manage their money – something with the potential to bury them in mountains of debt for years to come. Studies show that less financial knowledge leads to less financial stability over a lifetime.
The Retirement Confidence Survey, for example, shows that only 21 percent of workers expect to be able to afford a comfortable retirement based on their current contributions and, on aggregate, fewer than half of workers are taking basic steps to prepare for retirement.
Recently, we found the average consumer has questions about the core financial challenges they face today but many think they don’t have the ability to tap into the expertise they need. The good news: they’re not in it alone.
Banks often offer the kind of financial expertise consumers need, but don’t realize is available to them. There are also nonprofit organizations that can help. This year alone, financial literacy initiatives at 80 local community organizations will reach more than 260,000 Americans, in part due to Citizens’ $1.4 million in donations and volunteer outreach by our colleagues.
Resources exist in every Vermont city to help residents achieve their financial goals. For example, Champlain Valley Office of Economic Opportunity, a nonprofit focused on providing individuals and families with emergency, stabilization, and asset building services, is a key community partner of Citizens Bank that is providing much-needed services throughout Vermont. With our support, they are offering free educational classes and financial coaching to help people establish and achieve their budgeting, credit, and savings goals; business counseling services; and matched savings accounts for asset development.
While April is Financial Literacy Month, honing the financial skills of Vermont residents and businesses is a year-round commitment. We encourage consumers to improve their financial education by talking to their banker, or contacting a local non-profit that offers financial counseling. Money doesn’t come with instructions; however, when consumers are educated, they have the confidence and knowledge to make informed financial decisions for themselves, their families and their futures.