April has been declared Financial Literacy Month in Maine via a signed proclamation of Gov. Paul LePage. So what exactly does it mean for Mainers to be financially literate and why is it important?

The definition of financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. This includes money management, credit, debt management, insurance, investing and retirement planning.

The way we become financially literate is through financial education.

Financial education is the process by which people improve their understanding of financial products, services and concepts, so they are empowered to make informed choices, avoid pitfalls, know where to go for help and are equipped to take specific actions to improve their present and long-term financial well-being.

The recent “Crash of 2008” and the ensuing recession and foreclosure crisis have revealed a critical need for all Americans to establish and pursue sound financial habits.

Here in Maine, unemployment as of January 2011 was at 7.5 percent, as compared to 4.6 percent in December 2006. The foreclosure rate as reported by 32 state-chartered banks and credit unions averaged 0.45 percent of their first mortgage loan portfolios in September 2010, as compared to 0.15 percent in December 2006. The Bureau of Consumer Credit Protection reported recently that almost 37,000 mortgage default notices were sent to Maine homeowners in 2010. That means more than one-in-20 homeowners are at risk of losing their homes. In 2010, more than 4,200 Mainers filed for bankruptcy protection, an 8.6 percent increase from 2009.

These are not indications of financial well-being.

In 2009, a survey of 220 Maine schools was conducted by the Maine Jump$tart Coalition. They found that, of those schools that responded, 48 percent indicated that they taught some type of financial education. However, in more than 40 percent of those schools, less than 10 percent of the students are actually being taught financial education. Currently, teaching financial education in Maine is not mandatory, as it is in other states.

Without question, this has been a difficult time for many Mainers. It would be easy to play the blame game, but that would not be productive.

What is helpful is looking at what steps can be taken so that Mainers can improve their present and long-term financial well-being.

One resource we have in abundance in Maine is financial education.

There are many sources of quality financial literacy education, located from Kittery to Fort Kent. The state of Maine, itself, is a resource, as several departments and agencies offer educational materials, including the state Treasurer’s Office, Department of Professional and Financial Regulation, FAME and the Maine State Housing Authority.

The nonprofit sector has a multitude of financial education resources, ranging from organizations that work with children, women, seniors and immigrants.

There probably is an organization and financial education program to meet just about everyone’s needs today.

The financial services sector has also stepped up to meet this growing need by offering their customers, employees and the communities they serve a variety of educational programs. In addition they often collaborate with nonprofit organizations to hold classes, fund financial literacy projects or encourage their staff to volunteer time to these worthwhile efforts.

My hope is that all Mainers will use the governor’s proclamation as an opportunity to examine their own financial literacy and be empowered to find an educational class or service that meets their needs. That way, they can take steps to more effectively manage their finances so that they do, in fact, have a lifetime of financial well-being.

Leslie E. Linfield is the executive director and founder of the Institute for Financial Literacy, a national nonprofit organization based in Maine.