Melinda Perez, a financial educator, still remembers the first time she felt financially confident. She had recently started investing money outside of her employer-sponsored retirement account because she was finally earning more than she spent. “It was exciting because for once, I had what felt like extra money,” recalls Perez, who lives in San Antonio, Texas.
Financial confidence, or the belief in one’s money-related abilities, might not come up as much as financial literacy — especially in April, Financial Literacy Month — but money experts say it’s often the hidden ingredient behind savvy money decisions. “If there’s no financial confidence, there is no willpower to succeed. We translate that to financial self-efficacy,” says Perez, who also studies financial confidence as part of her research as a doctoral candidate in organizational leadership.
