As Financial Literacy Month draws to a close, it’s clear that understanding money management is more important than ever-especially given the economic headlines of April. From inflation concerns to the specter of a possible recession, recent events underscore why financial literacy is essential for everyone.

Financial literacy means having the knowledge and skills to manage your money effectively. It empowers you to budget, save, invest and avoid debt traps. With prices rising due to tariffs and inflation, and economic uncertainty looming, being financially literate helps you:

• Make informed decisions about spending and saving
• Build and protect your emergency fund
• Avoid spending beyond your means
• Understand what happens during a recession and how to prepare

In April, the U.S. saw new tariffs that boosted consumer prices and rattled markets. Inflation, while easing to 2.4%, remains a concern. These factors have increased the risk of recession, prompting the Federal Reserve to consider interest rate cuts to support the economy.

Understanding these dynamics helps individuals make smarter choices, like tightening budgets and prioritizing savings when economic uncertainty rises.

You don’t need a lot of money to start investing, and understanding some basic principles can help you grow your wealth over time:

• Start early and invest regularly: The sooner you begin, the more you benefit from compound growth. Even small, regular investments can add up over time.
• Diversify: Don’t put all your eggs in one basket. Spread your investments across different asset classes (stocks, bonds, real estate, etc.) to manage risk.
• Have a plan: Set clear goals, know your risk tolerance, and stick to your investment strategy-especially during market ups and downs.
• Think long-term: Resist the urge to time the market or chase quick gains. Staying invested through market cycles is key to long-term success.

Modern tools make it easier than ever for individuals to start investing, even with limited funds:

• Mutual funds: Pool your money with other investors to buy a diversified mix of assets. Professional managers handle the details.
• ETFs (exchange-traded funds): Like mutual funds, but they trade on stock exchanges. ETFs offer diversification, low costs and can be bought or sold like individual stocks.
• Fractional shares: Many platforms now let you buy a portion of a stock or ETF, so you can invest with just a few dollars and build a diversified portfolio over time.

These options lower the barrier to entry, allowing you to start investing and benefit from diversification and compounding-even if you don’t have large sums to commit upfront.

Building your investment knowledge is easier with quality resources, and there is an abundance of free information out there. Here are some trusted places to start:

• Morningstar Investing Classroom: A free, self-paced online resource with 100+ short courses on stocks, funds, bonds, ETFs, and portfolio building. Investors can learn and boost confidence through easy lessons and quizzes.
• Charles Schwab: Offers investing principles, educational articles, and interactive courses for beginners and experienced investors alike.
• BlackRock: Provides a dedicated education section with articles and resources designed to help individuals become more confident investors. Topics range from investment basics to advanced strategies, all aimed at empowering investors to plan for a better financial future.
• Equities.com also serves as a valuable financial literacy platform, featuring original content as well as expert insights from many industry thought leaders who partner with us to contribute to our growing community of informed investors. Check out our Impact Funds data.

Financial Literacy Month may be ending, but the need for financial education is ongoing, especially in a world of economic uncertainty. By understanding the basics of saving, spending wisely, and investing, anyone can take steps toward financial security.

Start small, keep learning, and use the resources available to build a brighter financial future.

Read more: Women at Fordham get $500,000 investment fund for hand-on financial education