April is Financial Literacy Month

While the month of April may be known for Easter, spring time, and rain showers, it is also Financial Literacy Month. Financial literacy can mean many different things to different people. For some it may mean teaching their children to be financially responsible. For others it means living a debt-free life. It's not a secret that many Americans, especially in the 18-40 year-old range are living with an enormous amount of debt. Why not start today by choosing to become more financially responsible? As small business owners it is very tempting to overlook these things without thinking about how it can affect us later on.

Some of my suggestions are:

• State 529 Plans for your child's education: All 50 states are offering a 529 Plan. Even states such as Kansas, Maine and Pennsylvania offer a deduction on your taxes to ANY state-sponsored 529 Plan. Check out Kiplinger's for all the state 529 Plans.

• Invest or contribute to a SEP or SIMPLE IRA: This is something that ALL small business owners should be doing. Since we are business for ourselves we cannot rely on a 401k or pension plan to help us during " retirement." Investing in a SEP or SIMPLE IRA still allows you to have a retirement account while still being a small business owner. The IRS.gov website offers much more insight on these types of plans and how they can benefit you. Check them out.

• Other choices can be investing in mutual funds or stocks outside of your IRA, buying individual stock, or even creating a monthly budget.

• Create a living will or trust acct. In the event of your death your wishes will be carried out from what is stated in the will or trust. This may eliminate going through probate court- which can be a very length and emotional process. Sites such as legalzoom.com or medlawplus.com can assist you in creating a living will for a small fee. The wills are legally binding and are much cheaper than going through a lawyer.

The possibilities are virtually endless. It is up to us to become more financially responsible. Happy Financial Literacy Month!