ODESSA, Texas — With the deadline for tax season approaching, there's bound to be many people thinking about how much their tax refunds will be.
However, some people are a little too quick to spend all that money once it comes in. Which means they, like a lot of other Americans, might not be as financially savvy as they need to be.
“To me financial literacy means understanding how money works, understanding how money works for you; that you can make money work for you," said Jason Berridge, president and CEO of Complex Community Federal Credit Union in Odessa. "It can give you more choices; the choices you make with money help you with your choices down the road. That’s what financial literacy means to me.”
Berridge said that rather than immediately spending all of the money in your refund on stuff you want, put the money towards things like savings, bills or other necessary expenses you have at the moment.
“You might be making $200,000 a year, but if you’re living paycheck to paycheck, spending everything you make and without saving anything, you don’t have good relationship with money," Berridge said. "You need to start with a budget, you need to name your dollars; tell them where they’re going. You don’t work for your money; you need to make your money work for you.”
It’s important to keep up with financial literacy so that you have more opportunities in life.
“Being able to understand your finances gives you choices," Berridge said. "When you understand how you’re finances work, when you understand your budget, when you understand financial literacy, it gives you more choices in life.”
Berridge also said you don’t need to pay for someone to fix your credit or teach you how to budget.
People can either learn that themselves or use free resources from places like Complex Community Federal Credit Union and others.