20 Ways to boost your financial IQ

Making smarter money decisions is a common new year’s resolution.  

And how you manage your money will determine how successful you are at hitting your financial goals.  Buying a house, starting (or expanding) a family, finally paying off your student loans, or whatever else you’d like to do can require a change of attitude, mindset, and behavior.

Whether you’re looking to save more, invest wisely, or simply gain a better understanding of your finances, we’ve got you covered. Here are 20 ways to advance your financial education this year.

Log onto your mobile and online banking every day to stay on top of your account balances. You’ll be surprised at how enlightening this little daily ritual can be. Many banking apps offer personalized spending and saving insights to help make your money go even further.

And don't forget about your monthly bank statements. Received in paper or digital form, this notice summarizes all of your monthly transactions to further help you keep track of where your money is going.

A budget is the basis of any useful financial plan. Give every dollar a purpose so you know that your expenses are covered on a monthly basis. Map out how much you want to spend on groceries, gas, and other regular expenses to set some parameters. By balancing and limiting these expenses, you’ll create the financial order necessary to save effectively.

There are many budgeting strategies out there, from simple to more complex, so it’s best to decide how much time and effort you want to commit. That’s why it’s so important to determine which money management style will be best for you, so that you can stick to it long term.

Think about what you want to achieve with your money. Which goals drop into the short-term bucket? Which ones are long term? After defining these timelines, you can tailor the appropriate financial plan to meet your goals and figure out what financial tools are available to help you be successful.

Experian, TransUnion, and Equifax can each provide a free credit report once a year, upon your request. Also, periodically check your credit score to notice any changes. Your credit is a big deal, so keep a close eye on it.

The future can be a scary thing to think about, especially when it comes to money. So make decisions today that will positively impact your life tomorrow. Think about the long game and make your future goals a priority.

Do you have a rhyme or reason for how much or how often you save? What about investing? By building a saving and investing plan — directly into your budget — you can make these practices part of your routine. Doing this through automatic deposits makes it even easier.

Be honest with yourself. Are you staying within your budget? Are you spending too much on senseless things? Sometimes the path to financial wellbeing starts by looking inward and identifying those wants versus needs.

How long would your boss keep you around if you ignored work tasks you really didn't want to do? Not long! Some money tasks aren’t the most exciting use of your time, but the attention you give them will go a long way toward developing and maintaining a solid financial plan.

Let’s face it: mostly everyone has debt. But how much and what type of debt will determine how best to tackle those (often) hefty expenses. You’ll need to put a strategy in place so that you can pay down any high interest debt that isn’t helping you reach your financial goals.

Let’s face it: saving money can be hard sometimes. But you don’t have to always feel like you’re counting pennies! It’s important to know when to steer off the path and reward your own good behavior. Treating yourself to an occasional reward will make it much easier to stick to your plan. Try budgeting in those “me” moments each month so that you stay on track while not depriving yourself.

There are lots of hands pulling at your paychecks each month. Between recurring bill payments (mortgage/rent, student loans, insurance) and everyday expenses (groceries, gas, entertainment), it can be hard to keep track of it all.

An easy way to simplify your cash flow is to open accounts for specific uses. For instance, you could have one checking account for all bills and a second account for everyday expenses.

The same goes for savings: Open one account for new car savings and a second account to save for your upcoming wedding. That way you can clearly see how much you have saved for each goal and how much further you have to go. Many banks also offer financial tools, like Citizens Saving Tracker™¹,dedicated to helping you save for certain big-ticket items or goals.

Keep an ear on the latest developments concerning the prime rate, regulation changes, and market trends. Mix in a financial podcast during your morning commute, sign up for financial newsletters or read personal finance books. There’s also a lot of great websites and social media accounts dedicated to all kinds of financial topics. This exposure will help sharpen your financial education.

Don’t just search for advice that affirms what you already believe about money management. Seek out alternative viewpoints to broaden your perspective. Who knows, maybe something you hear will resonate.

Even the best financial plans need to be revisited every so often. Make it a habit to review your financial progress every 6-12 months. For example, do you have enough cushion to save more for a certain goal? Are you spending too much in a certain area? Take a hard look at how your plan is performing so you can make any necessary adjustments.

Now, we’re not suggesting you make your salary public knowledge. But don’t shy away from learning about money among your friends and family. Maybe your best friend has a great saving tip to share. Perhaps your sister highly recommends her financial advisor. Sure, certain money matters can be sensitive, so use your discretion. But don’t be afraid to learn something new or share your own tips.

Is your money working hard enough for you? Keeping all of your savings in a standard savings account could have you missing out on higher returns. For example, you could keep your emergency fund in a standard savings account, put your short-term savings in a certificate of deposit or money market account, and invest your long-term savings in stocks or other securities.

Are you still being charged for a membership you don’t use? Did you forget to cancel a free trial offer and ended up auto-enrolled in a monthly or annual subscription? Go through your account statements to catch and cancel any of these recurring expenses you no longer need.

Just because you’re married doesn’t mean all your money should go into your joint checking account. Joint accounts are great for covering mutual expenses, like groceries and bills. Then, each of you can have money in your own accounts to spend (or save up) however you’d like. That can eliminate a lot of tension if one spouse is a saver and the other a spender.

When money is tight, it’s hard to justify increasing your budget in any area. But those that impact your health are probably worth it, such as buying healthier groceries or signing up for a gym membership. It might seem expensive now, but these purchases could lower your risk for developing chronic health issues that’ll carry much larger costs later in life.

Are you taking full advantage of the tax breaks at your disposal? Contributing money to a 401(k) or Traditional IRA helps you plan for the future with tax-free dollars. The same goes for a Health Savings Account or other reimbursement accounts that help pay for health expenses.