National Financial Awareness Day is a holiday observed every August 14th. This day encourages everyone to gain a better understanding of their financial footing 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, then they cannot have full control of their finances. And if they do not have full control, then anything can end up ruining their financial security.

By observing this holiday, people take it upon themselves to be more responsible and are dedicated to working toward a brighter future for themselves and their families.

The History of National Financial Awareness Day

Even though we are currently unsure who invented this holiday, we do know that it was created in 2019. It was probably established by someone who wanted to achieve financial independence but knew that they had to understand their finances better before beginning their journey. As do we all.

Some Important Facts About Finances

We wanted to take a deeper look into the subject of this holiday and see if we could come up with some statistics that show our readers just how important it is for them to take their finances seriously. With that said, let’s look at the following statistics and see what we can learn from them.

• Over 6 out of 10 Americans do not have enough savings to cover a $1,000 emergency.
• Most Americans pay for unexpected costs by financing with a credit card, borrowing money 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 have credit card debt.
• Approximately a third of all American adults do not have any money saved for retirement.

Observing National Financial Awareness Day

In an ideal world, people would take the time to consult a financial consultant to gain a better understanding of their finances. Since we understand that many people may not have the money to do that, we recommend that they become their own financial advisors.

There are plenty of free resources that educate people on the subject of finances. They can also take the time to look at all the accounts they have to see where they currently stand. Once they have all 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 recommended that people maintain long-term accounts for their retirement and for large purchases. As people delve into their own finances on this day, they can also take the time to spread the word about this holiday using the hashtag #NationalFinancialAwarenessDay on social media.