Financial literacy is a recipe for protecting your gains and securing a brighter future for your loved ones. The word “literacy” is the most important here and the most likely to be ignored. In recent years, Americans have fallen victims to predatory lending practices, and that’s of course a recipe for disaster.

A couple of years ago Congress proclaimed April as National Financial Capability Month. The purpose is to protect Americans from abuses in the financial industry by ensuring everyone has access to the information and tools that allow them to operate safely and smartly in the marketplace.

A strong and stable economy requires a financial system that is fair and sound for all. The good news is the path to sound financial decisions isn’t particularly complicated. Here are a few simple steps to turn things around.

Step 1: Use a Budget

According to a recent study, only 40% of US adults use a budget to track their spending. But how can you stop overspending if you don’t keep track of your money? The answer is: you can’t. To take ownership of your financial future, rank your expenses in order of importance and cut costs that are dragging you down into debt.

Step 2: Make Saving a Habit

Haven’t yet established a rainy day fund? You’re not alone; more than 43% of Americans don’t have enough money for emergencies, with almost 38% worried they’ll retire with insufficient savings. Take care of your financial future by setting aside a bit every month. If you keep a certain amount of money in the account at all times, you will be prepared when an emergency hits.

Step 3: Foster Financial Literacy in Your Family

More than one-third of US citizens are believed to learn about personal finance from their parents or at home. Hence, advancing financial education in your family is of utmost importance. Even if you have a poor understanding of money management, there are tools available to improve your financial education. You can take advantage of the free, reliable financial resources at www.MyMoney.gov, www.ConsumerFinance.gov, and 1-888-MyMoney.

Step 4: Avoid Debt

Although more than two-thirds of Americans pay their bills on time and have no debts in collection, 37% still carry credit card debt from month to month. How to avoid debt?

• Handle your credit cards wisely;
• Shop around for the best interest rates when applying for a loan;
• Pay off the card each month or at least pay as much as you can afford.

If you still have problems, a credit counseling service can help you establish a plan to work out your payment arrangements.

Please remember that there are many financial education tools available for people of all ages. So don’t let another April pass without getting a better handle on controlling your finances.