HONOLULU (KHON2) — April is national financial literacy month. There is an education campaign designed to remind youth and adults to focus on their financial future and wellbeing.

The Better Business Bureau said the campaign could not have come at a better time as inflation grows and grocery store prices rise.

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Just under 3.4 million high school students are expected to graduate in spring 2022, and the BBB said April is the perfect time to teach them about financial literacy — a term that can be difficult to explain.

“It’s defined as the ability to meet all of your financial needs today and over time,” said BBB Hawaii marketplace manager Roseann Freitas. “An ability to absorb a financial shock and having the financial freedom to make choices and enjoy life.”

A financial shock can come in different forms, Freitas said, like an expensive medical or veterinary bill. Part of being able to absorb these shocks has to do with how you budget.

“Most people — only about 44% of the general population — actually have a budget and track it.

Roseann Freitas, BBB Hawaii marketplace manager

Parents often use allowance to teach their kids about budgeting; giving them a schedule on when money will be coming in. But the BBB said budgeting includes teaching kids about how spending means that money will go out.

“And of course you want more money coming in than going out,” Freitas said.

The BBB said understanding debt is critical to financial literacy since credit cards are in the mix. Buying a pricy item with credit and making the minimum payment is fine, but know the remainder will gather interest and end up being more expensive in the long run.

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As a general tip for finances, guard your information with the utmost care, as the digital world makes shredding documents almost obsolete.