February 25, 2025
Celebrating Black History Month by Building Financial Wellness
By: Leonardo Atkinson, FPQP®, Banking Center Manager
As we celebrate Black History Month, we recognize the importance of empowering historically underserved communities through financial education. At Cape Cod 5, we are dedicated to offering resources that not only support individuals' financial journeys but also contribute to building lasting financial wellness. This initiative is part of our commitment to enriching the lives of our diverse community—not just in February, but throughout the year.
Building financial wellness is about more than just managing money; it's about developing lifelong habits and mindsets that support your goals. By focusing on education, empowerment, and behavior change, we aim to provide you with the tools and resources to transform your financial future.
- Understand Your Current Financial Situation
The first step toward financial wellness is understanding where you currently stand. Financial education emphasizes the importance of self-awareness in financial decision-making. Knowing where your money is going and how you feel about it is essential for making informed, proactive choices.
• Track Your Spending: Use a Personal Financial Management (PFM) or budgeting tool, or even an Excel spreadsheet, to help you track your spending. Awareness of where your money is going is the first step toward positive change.
• Set Realistic Goals: Establish clear, measurable goals for both the short term (saving for emergencies) and the long term (paying off debt, saving for retirement).
- Create a Budget that Works for You
Creating a budget is one of the most powerful ways to take control of your finances. Budgeting is not about restricting yourself; it's about prioritizing your financial goals and aligning your spending with your values.
• Identify your priorities: Envision how a fulfilling and abundant life would look for you. What is most important? Traveling? Providing financial assistance to your parents or children? Work to align your finances so you have the freedom to spend money on things that bring you joy and value, while minimizing your spending in areas that don’t bring you fulfillment.
• The 50/30/20 Rule: A great starting point is the 50/30/20 rule, which allocates 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. It’s crucial to adjust this based on the local cost of living and personal circumstances. In areas with higher living costs, like Cape Cod, the rule can still serve as a guide, but flexibility and customization are key to ensuring it’s effective.
- Build an Emergency Fund
An emergency fund is a crucial financial safety net. Building this fund reduces the stress of unexpected expenses and allows you to be more confident in your financial decisions. Having access to liquid savings can empower you to make better financial decisions when life presents challenges.
• Start Small: Aim for $500 to $1,000 initially in a savings account, then work toward saving three to six months' worth of living expenses.
- Begin Building Your Credit
Your credit score is an important reflection of your financial habits. It’s often the key to accessing affordable loans and achieving long-term financial success. Understanding the factors that affect your credit and actively working to improve your score is essential.
• Check Your Credit Report: You can request a free annual credit report from AnnualCreditReport.com to ensure accuracy and address any discrepancies.
• Use Credit Responsibly: Tools on your personal credit card site, or apps such as Credit Karma, can help you monitor your credit score and offer advice on improving it. Paying bills on time and maintaining a low credit utilization rate are key factors in improving your score.
- Stay Consistent and Keep Learning
Financial wellness is a lifelong journey, and consistency is key. Ongoing financial education is essential to ensure that you continue to make informed decisions as your financial situation evolves.
Looking to find out more? Our blog offers additional information on these and other topics to help you grow in your financial wellness. Have a question? Reach out to your friends at Cape Cod 5. We’re here for you!
Leonardo Atkinson, FPQP®
Banking Center Manager
Leonardo Atkinson serves as Cape Cod 5’s Banking Center Manager in Dennis, bringing nearly a decade of experience serving as trusted financial advisor to clients. Leo holds a Bachelor of Science in Business Administration from Roger Williams University and an MBA from Cambridge College. He has also earned the Financial Paraplanner Qualified Professional (FPQP®) certification and is a graduate of the New England School for Financial Studies and Leadership Cape Cod’s Community Leadership Institute. Additionally, Leo is a Certified Personal Financial Wellness Consultant (CPFWC). You can connect with Leo here.
