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Tag: Finances

April Is Financial Literacy Month

Posted on by djbechard

April is a good time to stop and think about your family’s financial goals. April is annually declared financial literacy awareness month and usually it coincides with doing your taxes – which is a chance to look at what you are earning and what you are spending.

After filing your taxes, is also a good time to review your tax withholdings and update your W-4, if you want more or less money withheld from your paycheck. Adjusting withholdings will increase or decrease the refund amount you get from the IRS each year.

Think about the expenses you have every month and the expenses you have periodically throughout the year. If you are spending more than you earn, then you are either taking money from savings or you are using credit. Sometimes in the short run, using credit is what you need to do, but in the long run, it’s not sustainable.

Financial success and happiness takes planning. Evaluate your financial situation relative to your career choice, define your financial goals, develop a plan of action to achieve your goals, and implement a spending plan to monitor and control your progress.

Celebrate financial literacy month by finding a book, class, or podcast to further your personal finance knowledge.

By: Brenda Langdon

Money-Smart Uses for Your Tax Refund

Posted on by djbechard

If you are expecting a refund this tax season, consider these tips for using it wisely.

  • Pay down credit card debt. Attack the card with the highest interest rate first. If you can pay off the card in full, that’s even better.

 

  • Build an emergency fund, by putting some of that refund into savings. Even a modest amount as little as $300 can help soften the blow of an unexpected expense.

 

  • Invest in a retirement plan. Enhance your future now by using your tax refund to invest in a tax-deferred retirement plan. If you have an Individual Retirement Account (IRA) make a one-time sizable contribution, or save your tax refund for a series of smaller investments over several months.

 

  • Be good to your car and home. Spend your tax refund on costly, but necessary, repairs to your home or vehicle. Replace that leaky roof or buy new tires for your car.

 

  • Treat yourself. If you have covered all of the above, then reward yourself – but do so responsibly. Spend your tax refund on a well-deserved vacation or buy yourself something you have been saving for.

By: Brenda Langdon

Financial Resiliency

Posted on by djbechard

Financial resilience is the ability to positively cope with the effects of a financial shock, setback or crisis.

Here are some ways to build financial resilience:

  • Begin paying down debt.
  • Start a savings account – pay yourself first, no matter how small the amount.
  • Create an emergency fund of at least 3 months expenses.
  • Keep your expenses as low as possible.
  • Keep a realistic budget.
  • Continue to learn about finances whenever you can.

By: Brenda Langdon

Financial Tips

Posted on by mjsaxton@ksu.edu
  • Involve your family in holiday planning – Discuss ways to have fun spending less during the holidays. Make a holiday bucket list that includes free activities and opportunities to serve others. Trimming the holiday expenses can also help to simplify the season.
  • Carve out time to plan financially for the year ahead – Create a financial vision board to articulate how you’re working toward financial freedom during the coming year.
  • Challenge yourself to take fewer trips to the grocery store – One of the best ways to avoid overspending on your food budget is to only visit the grocery store once per week. Try it out this month especially since we tend to spend more on food in November and December.

By: Brenda Langdon

Economic Impact Payments

Posted on by mjsaxton@ksu.edu

Some people are starting to see the next round of the Economic Impact Payment in their bank account, if the IRS has your banking information from filing your tax return.  The IRS had started sending out payments as early as March 12.

In general, most eligible people with get $1,400 for themselves (those filing joint returns will get $2,800) and $1,400 for each of their qualifying dependents claimed on their tax return including college students, adults with disabilities, parents and grandparents.  If you would like to check on your payment you can go to www.irs.gov/coronavirus/get-my-payment .

If you did not get your first or second payment in 2020 and you feel that you are eligible for that, at this point you will need to file a 2020 tax return, even if you aren’t required to file due to your income limit.

If the IRS does not have your bank account information or has old bank account information, your payment will be sent back to them and they will either issue a paper check to you or a debit card (EIP card) that will get mailed to your most recent address. The debit card will be sent by U.S. Mail in a white envelope with the U.S. Department of the Treasury seal and a return address from “Economic Impact Payment Card”.  If you received your payment last year on a card, it will not be loaded onto that card, a new card will be mailed to you.

By: Brenda Langdon

Make Time for a Financial Checkup

Posted on by mjsaxton@ksu.edu

Taking the time at least once a year to think about your financial and life goals, and how your actions are helping to make those come true, is important. If you know where you are regarding your financial health, you can then make a plan for where you want to be.

By doing nothing, you will never know if you are making progress toward your goals or if you are ever going to be able to retire. Establishing a baseline understanding of your financial health will help you identify areas of improvement and where action needs to occur.

A financial checkup once a year is usually enough, but you might need to have a checkup more than once a year when there has been a significant event in your life, such as a death, birth or marriage.

A financial check should look at two key areas: protection and investments.  Are you and your family protected in the case of an unforeseen emergency?  This can be through car and home insurance, life insurance, having a will or through establishing an emergency fund. These are all critical items that help ensure that you’ll be okay when ‘life happens.’

Are you setting aside money, whatever amount it might be, on a regular basis? Are you taking advantage of an employer’s retirement savings matching opportunities? If you changed jobs, do you know where your old retirement accounts are?

It is always important to have a good picture of what is going on in your financial life, regardless of your age.

By: Brenda Langdon

Spending Plans for the Holidays

Posted on by mjsaxton@ksu.edu

Many families have experienced income loss this year and they may also be wondering how they are going to celebrate the holidays.

This year, the holidays may not be exactly like they have been in the past, but families can still get the essence of what’s important to them without spending as much money. You might think about what you might gain from these changes or adjustments.  It may even lead to some new traditions.

Set a dollar amount limit of what you are spending. Think about how many people are involved and how much to spend on each person. Start early so you can spread out the cost.

Thanksgiving, is a food-heavy holiday, you should plan now to take advantage of sales. Try to eat out of your cupboards in late October and early November to clear out space and help you cut grocery spending in those weeks leading up to Thanksgiving.

For Christmas, keep a list of who you are buying for and what you are spending. Also, be sure to track the shipping information and make sure that you are getting all your purchases.  If shipping directly to the home of someone on your list, be sure to track that the package arrives.

One way to save money is to start scouting prices for gifts you plan to buy. The earlier you start, the more you are aware of prices, and you don’t feel pressured to make purchases at the last minute. Last minute purchases may lead to spending more on the item or having to pay for expediated shipping costs. Be careful when doing online shopping and using credit. By going into the store and shopping you can pay with cash and have a better chance of sticking to your budget.

By: Brenda Langdon