FINANCE Raise your grade in personal finance by getting Money SMart Money SMart

Feeling okay-ish when it comes to retirement planning?

Take your assessment and figure out areas where you need to get a little more versed and where you could use a bit more help.

By Annie Lepper, MPECU

Whenyou think about your approach to money management, how does it make you feel? Confident? A little freaked out? Something in between those two? If you’re like most people, it’s the “something in between” feeling.

Traditionally, financial management isn’t something that has been taught in school, so it’s no wonder four out of 10 adults give themselves a failing grade when it comes to personal finance. If it wasn’t a skill taught (and taught sufficiently) in your home growing up, it’s not a mystery why some people are able to get by with some of the basics of managing money but aren’t feeling completely competent when doing it.

Get money smart. Assess your skills and knowledge on some fundamental money basics:

• Budgeting

• Debt management

• Savings for the short term (such as a yearly vacation), mid-term (a car down payment) and long term (retirement)

• Investments and how they work

• Insurance and tax

Feeling like you have a good budget and debt management strategy in place? No clue if you have enough insurance or how taxation affects you?

Use your resources. If you know someone who does taxes for a living, ask them to take you through the basics of how to maximize your income with your withholdings and deductions. Ask your benefits person at work to help you understand terms and options within your insurance plan or how the company’s defined benefit plan and/ or 401(k) programs can benefit you more. Have a friend who is financially savvy with managing their household finances? Ask for tips and tricks.

It’s hard to admit that we don’t know something. If you aren’t confident enough to ask for help from people we know, turn to some experts. Set up an appointment with a financial adviser to do a review of your retirement, life insurance and investments. Choose someone you trust, and be completely honest with them. Tell them how you aren’t confident with your handle on things. A good financial adviser will review your current financial state, help you create steps to reach your goals, and take you through assessing how comfortable you are with risk. If you need help with debt management or creating (and sticking to) a budget, look for a reputable and accredited financial counseling service. Your local credit union or bank may have a partnership in place with certified financial counselors and can get your scheduled for no-fee appointments. It goes without saying that you can find anything on the internet. If you’d like to lay down a base layer of knowledge before you start using resources to help, be careful. Anyone with a blog or Pinterest board can offer financial advice. Look at their credentials and search out advice from established experts and websites.

If you have a partner in your household, you have an ally in this adventure. Get on the same page with brushing up skills and financial goals. Though going to a financial seminar or meeting with an adviser might not be the most romantic date, it may just be the most rewarding!

Have kids? Make it a part of your learning adventure to help them. Kids pick up on money concepts as early as 2-3 years old (generally when they realize that money is used to buy things). As their age and understanding allows, help them understand basic financial principles and skills. You’re never too young or too old to have a review in “needs versus wants,” “delaying gratification” and setting up a “savings challenge.”

Your confidence will grow as you sharpen up your skills. Lifelong learning is a critical skill to success, so even if you hit a point where you feel confident in your money smarts, keep on learning! D

Annie

Lepper is VP

of Operations

and Marketing at Minnesota Power Employees Credit Union. She wrote this for The Woman Today.