Did you know Texas residents are among the lowest scorers in terms of financial literacy?

According to The FINRA Foundation, many Texans score an average of 2.9/5 on basic financial concepts, a staggering score far below the national benchmark. 

For many Americans, financial awareness has always been a challenge. But for Texas in particular, the problem is especially complex. Amid the state's growing poverty, volatile industries, and demographic inequities, Texans have historically had less exposure to financial education in comparison to the rest of the U.S.

This financial gap represents a statewide vulnerability. In a region where inflation is always rising and expenses become unpredictable, being financially unprepared has its number of consequences. 

Michael Scarpati, CEO of RetireUS and a Texas resident, can explain this significance: “The numbers from the FINRA Foundation are a clear example that too many Texans are navigating their financial lives without the proper tools they need. And while the reality is that not everyone has access to formal financial education, that creates a real challenge for families trying to plan for their future.”

While improving access is the long-term goal, what Texans need immediately is a concept called financial consciousness. This means having a full understanding of one's financial situation, cultivating immediate awareness of where the money comes and goes. 

At its core, being financially conscious also goes beyond the technical literacy. It's designed to address money in a simpler way, forcing one to think about finances with purpose rather than reaction.

Scarpati continues, “Even in the absence of resources, individuals can educate themselves by starting small, whether that be putting money in savings or tracking daily expenses. General education is the backbone of financial security, and it does not have to seem complex. Rather, it is rooted in building initial awareness first, and then making intentional choices from there.”

In other words, Texans don't need to be financial experts to sustain their financial lives. Ultimately, the system is rooted in small, strategic habits to meet actionable results. These efforts might look like:

  • Tracking daily spending: Simple organization is the first step toward financial control. By writing down everyday spendings in a calendar, this can help easily uncover where the money is flowing.
  • Starting a savings account: Putting even the smallest amount of money into a savings account can help build momentum. Each time there's a paycheck, consider the basic budgeting rule of putting 20% of income into savings to create a financial cushion over time.
  • Learning credit vs. debit: Credit scores and debit are two concepts that serve different goals. By understanding the significance between each term, this can help secure better financial opportunities.
  • Setting goals. Take the time to assess what future goals might look like, whether it is to build an emergency fund or pay off debt. This creates a roadmap and makes daily choices more meaningful.
  • Spending deliberately. This is the practice of clearly establishing needs versus wants. It helps build discipline and prioritize the expenses that matter most.

The good news is, not all Texas residents are alone in this era. Studies show over half of Americans are overwhelmed by their finances, and roughly 30% of them find money to be stressful. But by implementing change now, financial wellness does not have to look like defeat.

Although financial literacy might take years to strengthen in Texas, financial consciousness is the first easy step toward making a resounding difference. Texans no longer can afford to wait for systematic solutions, because it ultimately starts with a mindset shift from the individual.

At the end of the day, the financial stakes for Texas residents are understandably high. But if they can embrace the challenge with resilience, the power of money can eventually become an easy conversation.

The bottom line is, the financial urgency for Texans starts now. Will they act today and make every dollar count?