Expert Opinion & Commentary Financial literacy: A smart step for every stage of life Written by Karen Terry | Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant. | Posted on: April 23, 2025 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. April is Financial Literacy Month, a time to focus on building confidence with money and making everyday financial decisions easier to navigate. This can include everything from basic budgeting and saving to loans, investments and insurance. The importance of financial literacy has been recognized nationwide by a growing number of states (currently 27) that require related coursework for high school graduation. Research shows that people often lack confidence in their financial knowledge, with less than one in five consumers saying they are very knowledgeable about investments and financial products. This lack of understanding of the ins and outs of personal finance can be a real barrier to addressing important financial needs. LIMRA research shows nine in 10 consumers say they need to understand life insurance better before making a purchase. A big part of financial literacy is dispelling misconceptions that often lead to inaction or bad decisions. LIMRA studies shows that most consumers overestimate the cost of life insurance, with about three-quarters estimating the premium at three times higher than the actual rate. Since cost is one of the primary reasons people decide not to buy, this overestimation can be a real barrier. Nearly 1 in 4 self-identified underinsured adults say they haven’t purchased coverage because they don’t know what to buy or how much they need. What can you do to increase your financial literacy? Many online resources are available to help people understand terminology and manage their money. Financial Literacy for All (FL4A), an initiative led by Operation HOPE, provides outreach programs and has a resource site with links to information sources. If you are looking for something local, the National Governors Association has a site with links to resources by state. You can also utilize free online training classes by groups such as Khan Academy. For reliable life insurance information, Life Happens is a great place to start. It’s a nonprofit organization that offers clear, educational resources to help you understand different types of life insurance, how much coverage you might need, and how policies work. You can also visit individual life insurance company websites, which often include tools like coverage calculators, FAQs, and details about the policies they offer. Exploring both can give you a well-rounded view and help you make more informed decisions. Steps you can take to improve your financial health and literacy There are a few simple things you can do to get your finances on track and build your confidence with money. Set a financial goal, whether it be creating a budget, starting to save or beginning to invest for your future. Subscribe to financial newsletters or podcasts, read accredited personal finance authors, or check out some of the online resources mentioned earlier. Find a financial advisor to assess your situation and help you make a plan to achieve your goals. Consult with an insurance agent to ensure you have the right coverage and are adequately protected. Find, support or create a program to increase financial literacy in your community. When you understand how to manage your money, it’s easier to make choices that support your goals — and that stability benefits not just you, but the people around you, too. Take a few minutes to map out a simple financial plan. It’s a small step that can make a big difference in reaching your goals. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Karen Terry . .Karen Terry leads the Individual Product Research team, developing and implementing LIMRA's research program for individual life, disability, long-term care and critical illness insurance products in the U.S. and Canada. Disclaimer: The opinions expressed by outside experts in Insure.com’s “Expert Opinion & Commentary” section reflect those of the author and do not necessarily reflect the views of Insure.com, its parent company QuinStreet Inc. or any of its affiliates and employees. Our editors review these articles and monitor them for accuracy after they've been posted, but the insurance industry sees constant rate changes, regulatory shifts, and other changes. Readers should always check an insurance company's website or contact.