Financial Literacy Month: Money management tips and insights to improve your financial health
Managing your money can feel overwhelming, especially if you’re dealing with debt, unexpected expenses, or credit challenges. Learn simple, practical steps to help you build confidence and take control of your financial health over time.
Key takeaways
Small financial habits can lead to big progress. Simple actions like paying bills on time or saving a little each week can build momentum and improve your financial stability.
Budgeting, credit, and savings are the foundation of financial wellness. Understanding where your money goes, how credit works, and how to save can help you make more informed decisions.
Strengthening your credit is an important goal. Focusing on on-time payments, managing balances, and using the right tools can help you build or rebuild your credit over time.
Consistency matters more than perfection. Choosing a plan you can stick with, whether for budgeting or paying down debt, is key to long-term financial improvement.
If you feel behind with money, you’re not alone. Unexpected expenses, lingering debt, and uncertainty about the future make it hard to know where to begin, especially if you don’t know where to begin.
The good news? Even small steps can make a big difference over time. Learning more about money and building simple financial habits can help you move forward with confidence.
To mark Financial Literacy Month in April, Snap Finance asked consumers with credit scores above and below 670 about their financial habits, choices, and concerns. The results revealed important differences in how people feel about and manage their money based on their credit score and personal experiences.
Whether you’re working to build or rebuild your credit – or simply want to learn more about finances – these insights can help you better understand your current situation and the role credit plays in financial decisions. Download the full report, “Closing the Credit Gap: Financial Wellness,” now. [hyperlink title to landing page]
What Snap Finance’s new study reveals about financial stress in America
When your finances feel shaky, it creates stress and uncertainty. Worrying about whether you can cover bills, handle an emergency, or keep up with payments makes it difficult to plan or make important financial decisions.
Snap Finance found that among those with lower credit scores, 58% described their current financial situation as unstable or very unstable, compared to 13% of those with higher scores.
Why does this credit gap exist?
For many people, it starts early. Financial education isn’t always taught in school or at home. That means concepts like credit score basics, budgeting, or saving money can feel confusing or even intimidating later in life.
And when you’ve had negative financial experiences – missed payments, unmanageable debt, or limited access to credit – it’s easy to feel discouraged.
But your financial story can be rewritten. With the right tools, information, and support, you can build financial confidence, step by step.
Financial wellness starts with one small win
Financial literacy doesn’t have to be complicated. But many say managing money is confusing and overwhelming – and that they don’t have the time or money to learn more. Snap Finance found that among all consumers, 49% said they feel overwhelmed by the idea of learning more about their finances, 32% said they lacked time and 20% said they lacked the money to learn more.
Improving your finances doesn’t happen all at once. Simple habits like paying a bill on time or saving a few dollars each week build momentum.
Three money management foundations: budgeting, credit, and savings
Does it feel like your paycheck is already spent before it hits your account? That’s the all-too-common reality of living paycheck to paycheck. To make it work, you have to know exactly when money is coming in – and how much – and when it needs to go out.
It’s a common situation. Among those with lower credit scores in the Snap Finance study, 91% said they live paycheck to paycheck, compared to 53% of those with higher scores. Among those with lower credit scores who live paycheck to paycheck, almost half have trouble paying all their bills on time.
When you’re living paycheck to paycheck, there’s little room for error. If you’re not sure where to begin, focus on three money-management basics to support your overall financial wellness:
Budgeting: A plan for where your money goes before you spend it.
Credit score: Built from patterns and information in your credit report. Your credit score can change over time.
Savings: Money set aside for unexpected expenses, emergencies, and long-term goals.
Seven practical steps to improve your financial situation
Ready to dive in? Here are seven actionable steps to help you build good money management habits and your financial confidence.
1. Build a spending plan you can follow
A spending plan or budget is a simple way to plan for, understand, and track what you’re spending using an app, spreadsheet, or piece of paper – whatever works for you. Begin by listing your income and your regular expenses, such as rent, utilities, groceries, and transportation. Next, look at your everyday spending like eating out or shopping so you can see the full picture of money coming in and money going out.
When budgeting, make sure your needs are covered first, then decide how much you can use for debt repayment, savings, and spending on extras. The goal is to create a plan you can stick with and adjust over time as your situation changes.
About half of all consumers (54%) in Snap Finance’s study report having a budget or spending plan. However, the real challenge isn’t creating a budget, it’s following it, especially if you have credit challenges. Our study found those with higher credit scores are much more likely to stick to their budget every month.
Try this today: Track your spending for seven days. Look at everything you buy and label each purchase as a "need" or a "choice." This simple exercise will give you a picture of where your money is going.
2. Focus on the credit score factors that impact your score
Building a better credit score starts with understanding what makes a score go up and down. Here are the five factors that make up your credit score
Payment history. How promptly you pay your bills matters. Even a single missed payment can have a negative impact on your credit score.
Amounts owed. How much of your available credit are you using? The lower the credit utilization percentage, the better for your score.
Length of credit history. The longer you’ve been using credit responsibly, the more it boosts your score.
Credit mix. A healthy mix of different types of credit, such as credit cards and auto loans, can positively affect your score.
New credit. Frequently applying for new credit can temporarily lower your score.
Try this today: Set up autopay for your fixed bills and at least the minimum payment on other accounts. Set a calendar reminder for three days before the due date to ensure you have enough funds in your account.
3. Consider credit-building options designed for your situation
If you’re trying to improve your score, you might look into products designed to help you build or rebuild your credit. These products can include secured credit cards or credit accounts, credit-builder loans, and alternative credit reporting tools.
These can be helpful but always read the terms and conditions to learn about fees, interest rates, and rules. Look for products that report your progress to the major credit bureaus.
Try this today: Compare two or three credit-building options side by side. Look closely at their fees, their APR, whether they report to major credit bureaus, and their minimum payment rules.
4. Start an emergency fund
Snap Finance found that 65% of those with lower credit scores have $500 or less in savings, including 22% who have no savings.
Setting money aside for an emergency fund – kept in a separate bank account – helps you pay for an unexpected expense or urgent situation. Even a small emergency fund can reduce stress.
Try this today: Set up an automatic transfers from your checking account or payroll direct deposit (even if it’s a small amount) to a separate savings account.
5. Make a play to pay off debt
Paying down debt can improve your financial situation, reduce your stress, and free up more of your income for saving and investing.
There are two popular strategies for debt reduction. With a debt avalanche, you pay your highest-interest debts first while paying the minimum on lower-interest debt. With the snowball method, you focus on paying off smaller debts first and work your way up to larger ones. The strategy you choose matters less than your commitment to sticking with your repayment plan.
Try this today: List all your debts, due dates, and minimum payments. Then, choose either the snowball or avalanche method to follow for the next 30 days.
6. Use tools that make managing money easier
There are many easy-to-use financial tools that can reduce effort and help you stay consistent, starting with your bank’s website or mobile app. Online and mobile banking capabilities often include the ability to track your transactions in real time, see account balances, set low-balance or fraud alerts, pay bills, set due date alerts, and set up automatic transfers to savings or another account.
Free or low-cost money management and budgeting apps may also be helpful to you. These apps can help you track your spending, set savings goals, and create a budget. Many offer bill reminders, expense categorization, and investment tracking.
Try this today: Log in to your bank account and turn on one new feature or alert.
7. Get support to avoid doing this alone
Improving your finances doesn’t have to be a solo journey. Ask for help when you need it from trusted sources. Whether it is a free community workshop, a reliable financial blog or podcast, or a trusted advisor or family member, support is available.
Learning about money from trusted sources can build your financial confidence over time.
Try this today: Schedule 15 minutes this week to learn about one new financial topic. You could read an article about budgeting, listen to a podcast on credit basics, or look up tips for saving.
You’re not behind
If you feel overwhelmed, that doesn’t mean you’ve failed – it means you’re learning. Many people are in the same position, and changing your financial situation is possible with small, steady steps.
You are not behind. You are exactly where you need to be to start making a change. With consistency and the right tools, support, and mindset, you can keep moving forward.
Snap can help you get what you need now
Improving your financial health and your credit isn’t easy and it takes time. No matter where you are in your financial journey, life happens and unexpected expenses can disrupt your plans.
Whether you need to replace a broken appliance or fix your car to get to work, Snap Finance can help you handle life's surprises. Snap understands that traditional financing isn’t always available to help you get what you need now, especially if you have less-than-perfect credit.1 Learn how Snap can help at snapfinance.com.
Financial literacy FAQs
What is financial literacy?
Financial literacy is the ability to understand how to manage your money. It includes learning how to budget, manage debt, and save for the future. Being financially literate means you have the knowledge to make informed, confident choices with your money.
Why is Financial Literacy Month important?
April is Financial Literacy Month. It’s a dedicated time to raise awareness about money management and encourage people to learn key financial skills. It’s a reminder that improving your finances is possible at any stage of life.
What’s one small step I can take today?
Start by tracking your spending for one week. This simple step helps you understand where your money is going and gives you a starting point for change.
How can I start building credit after setbacks?
Focus on making on-time payments, keeping balances low, and using credit responsibly. You can also explore credit-building options designed for your situation.
How much should I save in an emergency fund?
Start with a small, manageable goal, like saving your first $500. Over time, aim to build enough to cover a few months of expenses. The key is to begin, even if it’s a small amount.
Snap Finance, its affiliates, and partners offer consumers a range of solutions, which may include lease-to-own financing, installment loans, retail installment contracts, and credit cards. Product availability may vary. For detailed information, visit snapfinance.com/legal/products.
1 Not all applicants are approved. While no credit history is required, Snap obtains information from consumer reporting agencies in connection with submitted applications, and your score with those agencies may be affected.