National Financial Awareness Day is a holiday observed every August 14th. This day encourages everyone to gain a better understanding of their financial standing so they can work toward greater financial independence and stability.

If a person is not aware of how much they are making, how much they are saving, and how much they are spending, they cannot have full control of their finances. Without full control, anything can jeopardize their financial security.

By observing this holiday, people commit to being more responsible and dedicated to working toward a brighter future for themselves and their families.

The History of National Financial Awareness Day

Although we are currently unsure who invented this holiday, we do know that it was created in 2019. It was likely established by someone who sought financial independence but knew they needed a better understanding of their finances before beginning their journey. As do we all.

Some Important Facts About Finances

We wanted to delve deeper into the subject of this holiday and see if we could find some statistics that illustrate the importance of taking finances seriously. With that in mind, let’s examine the following statistics and see what we can learn from them.

• Over six out of ten Americans do not have enough savings to cover a $1,000 emergency.
• Most Americans cover unexpected costs by financing with a credit card, borrowing from family or friends, or taking out a personal loan.
• By 2024, over 40% of student loan borrowers are expected to default.
• Almost 40% of all U.S. households carry credit card debt.
• Approximately one-third of all American adults have no retirement savings.

Observing National Financial Awareness Day

Ideally, people would consult a financial advisor to gain a better understanding of their finances. Understanding that many may not have the funds for this, we recommend becoming one’s own financial advisor.

There are numerous free resources available to educate people about finances. They can also review all their accounts to assess their current situation. Once they have this information, they can plan how to save more money for emergencies.

It is recommended that people have at least six months of savings for emergencies. It is also advisable to maintain long-term accounts for retirement and significant purchases. As individuals delve into their finances on this day, they can also spread the word about this holiday using the hashtag #NationalFinancialAwarenessDay on social media.