April is Financial Literacy Month. But what is financial literacy? Basically, it’s the ability to understand and use financial skills to make wise decisions about your finances.
Financial literacy encompasses a variety of skills, but we’d like to focus on some basic skills that are relevant to planning for a successful retirement. Whether you’re just starting your career, planning on retiring soon or already retired, mastering these skills will help you and your future financial security.

Taking Stock of Your Finances
A good place to start building your financial literacy is by getting a handle on your current financial situation. Ask yourself some basic questions:
- How much do you earn and spend each month?
- How much debt do you have?
- Do you have any major expenses on the horizon?
If you know where you stand, you’ll be in a better position to plan for the future.
If you’re planning for retirement, you can estimate your pension by using the benefit calculator in Retirement Online. (You can also check your future Social Security benefit online.)
Creating a Budget
This financial planning tool helps you track your income and expenses. Having a budget can help you make better financial decisions, avoid debt, prepare for emergencies and save money.
If you don’t know how to get started, here are some tips on creating a budget. If you plan to retire soon, you can use our worksheet to create a post-retirement budget.
Understanding Interest Rates
Interest is great if you’re on the receiving end, but not so great if you are paying it. Unfortunately, consumers can pay very high interest rates on credit. The average interest rate on a new credit card account is nearly 18 percent, and many consumers pay 20 percent or more on their credit cards.
If you have credit card debt, and only pay the minimum each month, you’ll make little progress on reducing the balance while the interest you pay every month adds up. For example, if you owed $1,000 on a credit card with an 18 percent interest rate, and made payments of $40 a month, it would take you 71 months to pay off and your total interest cost would be nearly $500. On the other hand, if you paid $100 a month, it would be paid off in half the time and your total interest would be about $160.
Managing Debt
Debt is not necessarily bad, but it can easily derail your financial plans if you’re not careful. Credit cards pose a particular risk because they are so easy to use, but you can learn strategies to avoid credit card debt.
Saving
As a NYSLRS member, you’ll receive a lifetime pension that will be based on your years of service and earnings. But your personal retirement savings can be an important supplement to your pension and Social Security. It’s never too early or too late to start saving for retirement. To learn more building your savings, read our recent blog post Saving for Retirement. Is Now the Right Time?
Follow our blog for future posts on retirement savings and related topics.
Many thanks. As a former New York State employee and a current NYS retiree, I look forward to participating in your assistance with evaluating my existing retirement pension.
Robert P. BOWLES
I am looking to start taking my benefits need information on necessary steps
A good way to get started is to sign in to Retirement Online to review the information we have on file for you, such as your total service credit, and use the online benefit calculator to estimate your pension. If you don’t already have an account, go to the Sign In page and click the “Sign Up” link under the “Customer Sign In” button.
You may also be interested in the retirement timeline on our website. It shows the steps you’ll need to take and highlights important topics and information you’ll need to consider.
If you have account-specific questions, or want to schedule a one-on-one consultation, please call our customer service representatives at 1-866-805-0990 (or 518-474-7736 in the Albany, NY area), press 2, then follow the prompts. One of our representatives will review your account and respond to your questions. You can also email our customer service representatives using our secure email form. Filling out the secure form allows them to safely contact you about your personal account information.