By: Dr. Phyllis Hudson-Bivins
April offers so many reasons for celebrating. We get April Fools’ Day, Passover, Palm Sunday, Tax Day, Good Friday, Easter Sunday, Easter Monday, Earth Day, Spring Break, Autism Acceptance, National Poetry, and so much more. But it is also Financial Literacy Month.
And for the remainder of April, that will be our focus. However, financial literacy should not be recognized only in April, and it should be an ongoing practice.
That said, Financial Literacy Week is an initiative aimed at promoting financial awareness and education. It’s usually observed annually, with various organizations and institutions participating to provide resources, workshops, and events focused on improving financial knowledge and skills. In the United States, for instance, Financial Literacy Month is typically celebrated in April.
However, depending on the organization or region, specific weeks or days might be dedicated to financial literacy depending on the organization or region.
There are many aspects of financial literacy that one can find interesting. Some of them include budgeting, saving, investing, and financial goal-setting. Credit and debt, retirement planning, taxes, insurance, emergency funds, and a financial safety net could also be included.
But if we want to help readers visualize concepts, we have to make sure the lingo is newbie-friendly. For instance, instead of “compound interest,” say:
“Think of it like a snowball rolling down a hill—each roll gathers more snow (money), and the bigger it gets, the faster it grows.”
Someone interested in financial literacy must be committed to staying current and having reliable sources. This means being aware of the financial trends, laws, and tools because of these changes. To ensure you are current, consider visiting these sites for reference:
Government sites (e.g., IRS, SEC)
Financial news (e.g., CNBC, Bloomberg)
Reputable personal finance educators (e.g., NerdWallet, Investopedia)
Additionally, try to avoid jargon overload. As a newbi,e you are not expected to know a lot, so you are studying to become financially literate. So you aren’t expected to know terms like "APR," "asset allocation," or "liquidity." Instead, have your financial teacher or tutor define them for you without dumbing them down. Financial literacy is about doing.
So, consider taking practical steps during the learning curve. If you’re new to budgeting, start by tracking your expenses for one week. Use a free app or even a notebook. You’ll be surprised where your money goes. And use tools or visuals to support your journey.
Tools and/or visuals such as charts, calculators, or infographics, when possible—especially for things like: Budget breakdowns, Debt repayment strategies (e.g., snowball vs avalanche), and Interest calculations.
HERE ARE THE TOP FIVE MISTAKES PEOPLE MAKE WITH CREDIT AND HOW TO AVOID THEM
Credit can be a powerful financial tool—but only if used wisely. Unfortunately, many people fall into traps that can damage their credit score and financial health for years. Whether you're just starting your credit journey or looking to clean things up, avoiding these five common mistakes can save you money, stress, and missed opportunities.
Ignoring Your Credit Score
The Mistake:
Many people don’t check their credit score until it’s too late, like when applying for a loan or apartment.
Why it Matters:
Your credit score affects everything from loan approvals to interest rates, job applications, and even insurance premiums.
How to Avoid it:
Check your credit score regularly (many banks and apps offer it for free).
Monitor your credit report for errors at AnnualCreditReport.com.
Paying Late—or Not at All
The Mistake:
Missing payments, even by a few days, can hurt your credit and rack up fees.
Why it Matters:
Payment history makes up 35% of your credit score. A single missed payment can stay on your report for up to 7 years.
How to Avoid it:
Set up autopay or calendar reminders
If you’re struggling, contact your creditors early—some offer hardship programs
Maxing out Credit Cards
The Mistake:
Using all your available credit sends the message that you are overextended, even if you pay on time.
Why it Matters:
High credit utilization (above 30%) can lower your score.
How to Avoid it:
Keep balances low—aim to use less than 30% of your available credit.
If possible, we pay your balance in full each month.
Opening Too Many Accounts at Once
The Mistake:
Taking out several new credit cards or loans in a short time to “build credit faster.”
Why it Matters:
Each application results in a hard inquiry, which can temporarily lower your score. Too many new accounts can also look risky to lenders.
How to Avoid it:
Space out new credit applications.
Only open new credit when it serves a clear purpose (like improving your credit mix or getting better rewards).
Closing Old Accounts Prematurely
The Mistake:
Thinking that closing a paid-off credit card boosts your credit.
Why it Matters:
Closing accounts reduces your available credit and shortens your credit history, which can hurt your score.
How to Avoid it:
Keep older accounts open, especially those with no annual fees.
Use them occasionally to keep them active.
How to Build Credit from Scratch: A Beginner’s Guide
Starting from zero might sound intimidatin, butteveryone starts somewhere when it comes to credit, everyone starts somewhere. Building credit from scratch doesn’t have to be complicated. You can set yourself up for a strong financial future with a few smart moves.
Here’s how to build credit step by step—no shortcuts, no jargon, just practical tips that work.
1. Understand What “Credit” Really Is
Credit is your reputation as a borrower. It shows lenders, landlords, and even some employers how trustworthy you are with money. That’s why it matters—even if you don’t plan to get a loan anytime soon. Your credit score is based on payment history (on-time payments): credit utilization (how much of your available credit you use), length of credit history, types of credit (cards, loans, etc.) new credit inquiries.
2. Start with a Secured Credit Card
If you’ve never had credit before, a secured credit card is one of the easiest ways to get started.
How it works: You make a deposit (usually $200-$500), and that deposit becomes your credit limit. You use it like a regular credit card, and your activity is reported to credit bureaus.
Tips: Use it for small, regular purchases (like gas or groceries), pay your bill in full every month to avoid interest, and never miss a payment--your score depends on it.
3. Become an Authorized User
Ask a parent, sibling, or trusted friend with good credit if they’ll add you as an authorized user on their credit card.
Why it works:
-You “inherit” their positive credit history without needing to apply/
-You don’t even need to use the card to benefit.
Important: Ensure the card reports authorized users to the credit bureaus (most do).
4. Consider a Credit-Builder Loan
Some banks and credit unions offer credit-builder loans where:
-You make small monthly payments into a locked savings account
-After 6–12 months, you get the money back, with interest, and a credit history to show for it.
It’s basically training wheels for credit.
5. Pay Everything On Time—Even the Small Stuff
Rent, utilities, streaming services, even your phone bill—if you miss a payment, it can end up in collections and hurt your credit.
Pro move:
Some apps and services (like Experian Boost) can help you add on-time utility and phone payments to your credit report.
6. Don’t Apply for Too Much Credit Too Fast. Applying for multiple cards is tempting, but too many applications can "ding" your score.
Stick with one starter card, use it responsibly, and build from there.
7. Track Your Progress
You can check your credit score for free through many banks or apps. Look out for: Score improvements, New accounts or errors, and Signs of identity theft.
Final Thoughts
Building credit takes time, discipline, and consistency—but it’s one of the most valuable things you can do for your future. Start small, stay consistent, and before you know it, you’ll have a solid credit foundation that opens doors to better loans, lower interest rates, and more financial freedom. Credit isn’t just about borrowing—it’s about trust, responsibility, and opportunity. By understanding and avoiding common mistakes, you can build a credit profile that opens doors, not closes them.
Until next time, keep flying on your own wings.
Dr. PGBHudson
Use AnnualCreditReport.com to get a free credit report from each of the three major bureaus.