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How to leverage Lunar New Year traditions to create prosperity, wealth, success, and happiness during the New Year As the Lunar New Year approaches, it's not only a time for joyous celebrations but also an opportune moment to kickstart your finances. Here are some savvy strategies to usher in prosperity and financial abundance during the Lunar New Year: 1. Embrace the spirit of cleaning and decluttering during Lunar New Year: Apply the same principle to your finances by reviewing and organizing your budget. Clear clutter, organize your financial documents, and start prepping for the upcoming tax season. 2. Bring in Prosperity with New Income Streams: The Lunar New Year is a symbol of new beginnings. Consider exploring additional income streams such as freelancing, online gigs, or investing in side projects. Leverage the flexibility of the gig economy by participating in platforms that match your skills. Whether it's freelancing, ride-sharing, or selling handmade crafts online, these opportunities can boost your income. Diversifying your sources of income can bring in extra prosperity. 3. Leverage the number "8" for good luck: The number "8" is considered lucky in Chinese culture, because the word for the number eight is "ba" (八), which sounds similar to the word for wealth or prosperity, pronounced as "fa" (发). Leverage the luck behind the number "8" and consider setting an automatic deposit of $8/day for the rest of the year into an Acorns or Betterment account. 4. Celebrate Mindfully with Budgets: While celebrations are essential, be mindful of your expenses during the festive season. Set a budget for gifts, feasts, and other festivities, ensuring that you enjoy the festivities without compromising your financial goals. 5. Honor Your Family through Your Finances: Family plays a central role in the Lunar New Year celebrations, symbolizing unity, love, and the continuation of traditions. The festive season provides an opportunity for generations to connect, express gratitude, and reflect on the past while looking forward to the future. Incorporate the idea of unity and family ties into your financial planning; consider pooling resources for joint investments or setting financial goals together. 6. Build a Legacy through Estate Planning: Draw inspiration from the tradition of honoring ancestors; and consider leaving a financial legacy through proper estate planning and wealth transfer strategies. If you don't know where to start, consider sitting down with family to learn how to deepen your financial literacy together. 7. Give Yourself a "Red Envelope": Just as families exchange red envelopes for good luck, consider creating a "financial red envelope" where you allocate a portion of your income to savings or investments. This can be a sinking fund for a down payment on a home, a wedding, or for a lavish trip. Consider it a "red envelope" that will bring you luck and prosperity in the future. 8. Reflect on Your Journey: The Lunar New Year often serves as a time for reflection. Spend time thinking about your personal and professional growth, express gratitude for positive aspects of their lives, and consider areas for improvement. Additionally, the Lunar New Year is seen as a time of renewal and fresh beginnings. Set new goals, make resolutions, and plan for the upcoming year based on insights gained from those reflections. It's a holistic approach to welcoming the new year, combining a sense of gratitude for the past with an optimistic outlook for the future. Conclusion As you celebrate the Lunar New Year, seize the opportunity to revitalize your finances. By combining traditional wisdom with modern financial strategies, you can embark on a journey of prosperity and abundance throughout the year ahead. May your finances flourish like the blooming flowers of spring!

Juggling school and work can be stressful, but manageable with the right tips and processes For people who are going back to school to start or finish a degree, quitting their job is often not an option. With family responsibilities on top of a school bill, many people need to keep working in order to keep the lights on. Which begs the question: Is it worth it to work while also juggling school? Yes, it can be, but you are going to need the right time management and prioritization to make it work. Below are practical tips to help you manage your day effectively and balance your career and academics: 1. Create a Realistic Schedule: Establish a weekly schedule that includes dedicated time for work, classes, studying, and personal activities. Use productivity tools and apps to help manage your time efficiently and set reminders for important tasks. 2. Choose Flexible Work and Study Options: Look for employers who offer flexible work hours or remote work options to accommodate your class schedule. Consider online courses or evening classes to create a schedule that aligns with your work commitments. 3. Effective Time Management: Prioritize tasks based on deadlines and importance; and break down large assignments into smaller, more manageable tasks to avoid feeling overwhelmed. 4. Open Communication with Employers and Professors: Great communication goes a long way. Inform your employer about your academic commitments and discuss any potential challenges or adjustments needed. Establish open communication with professors and don't hesitate to seek guidance or discuss challenges in balancing work and school. 5. Utilize Support Services: Take advantage of support services offered by your college, such as tutoring, counseling, and career guidance. Seek mentorship from professionals who have successfully balanced work and college. 6. Set Realistic Goals: Clearly define your short-term and long-term goals for both your career and education; and adjust your goals as needed, considering the demands of your work and academic responsibilities. 7. Effective Study Techniques: Identify study techniques that work best for you, whether it's group study sessions, flashcards, or online resources. Break your study sessions into focused intervals with short breaks to maintain concentration. 8. Take Care of Your Well-Being: Prioritize self-care to avoid burnout. Ensure you get enough sleep, exercise, and relaxation time. Maintain a healthy diet to support your energy levels and cognitive function. 9. Create a Financial Plan: Plan your budget carefully to account for tuition, textbooks, and living expenses. Explore financial aid options, scholarships, and employer-sponsored education programs. 10. Prepare to be Adaptable and Flexible: Be prepared to adapt your schedule and plans as needed. Develop resilience and the ability to handle unexpected challenges that may arise. The bottom line Navigating the dual responsibilities of college and full-time work requires careful planning, effective time management, and a resilient mindset. While it might not be easy, these time management tips might help you feel more organized and achieve your goals.

From debt collection to employment fraud to cryptocurrency, scams are increasingly sophisticated and harder to discern as fake As of late, financial scams have become more prevalent. Protecting yourself from falling victim to scams is crucial for safeguarding your hard-earned money. Below we'll explore common financial scams, provide tips on how to spot them, and offer practical advice on protecting yourself from these fraudulent activities. What are the most common financial scams? You may find scams compromising your financial accounts unnerving, but understanding the types of scams out there can prevent you from giving up important information to fraudsters. Below are several common schemes: Phishing Emails: Scammers often send deceptive emails that appear to be from legitimate financial institutions, urging recipients to click on fraudulent links or provide sensitive information. Impersonation Scams: Fraudsters may pose as representatives from reputable organizations, financial institutions, and even family members. Under this scheme, scammers seek personal or financial information under false pretenses. Investment Scams: Unscrupulous scammers may promote fake investment opportunities, promising high returns with little risk. Ponzi schemes and pyramid schemes fall under this category. Identity Theft: Criminals may steal personal information to commit identity theft, opening fraudulent accounts or making unauthorized transactions in the victim's name. Tech Support Scams: Scammers may call or email, claiming to be tech support representatives. They then convince victims to grant remote access to their devices or pay for unnecessary services. How do you spot financial scams? Although some scams are difficult to immediately spot, below are some best practices to safeguard your confidential information and finances: Be Skeptical of Unsolicited Communications: Legitimate financial institutions rarely contact customers via unsolicited emails, calls, or messages. Be wary of unexpected communication requesting personal or financial information. Verify Sender Information: Check the sender's email address or contact details. Scammers often use email addresses that mimic legitimate institutions but contain subtle misspellings or variations. Research Investment Opportunities: Thoroughly research any investment opportunity before committing funds. Verify the legitimacy of the company and seek independent reviews from reputable sources. Protect Personal Information: Avoid sharing sensitive information, such as Social Security numbers or account details, unless absolutely necessary. Legitimate entities will not request this information through unsolicited communications. Stay Informed about Scam Tactics: Stay updated on common scam tactics. Knowledge is your first line of defense against evolving fraudulent schemes. Educate family and friends. Awareness is crucial in preventing financial fraud. Use Two-Factor Authentication (2FA): Enable 2FA on your online accounts to add an extra layer of security, making it difficult for scammers to gain unauthorized access. Regularly Monitor Your Accounts:Keep a close eye on your bank and credit card statements. Report any suspicious activity immediately to your financial institution. Install Reliable Security Software: Use reputable antivirus and anti-malware software to protect your devices from malicious software that scammers may use. The bottom line Safeguarding your finances from scams requires awareness and education. By staying informed, adopting security practices, and being cautious about unsolicited communications, you can significantly reduce the risk of falling victim to financial fraud. Prioritize your financial well-being by implementing these protective measures and staying one step ahead of scammers.

Many taxpayers wait until the last minute to file their federal income tax returns; but there are many reasons to prep for your taxes early. The mention of tax season might induce a sense of dread for many, but tackling your returns early might be the key to a stress-free tax season. Instead of waiting until April to start your taxes, consider starting the prep work now. Why Start Early? Preparing your tax return early can prevent last minute problems, and avoid needing a tax preparer to sort your finances and complete your return on time. Here are our top five reasons why to start getting ready for your taxes sooner rather than later: Avoid the Last-Minute Rush: By starting early, you eliminate the pressure of scrambling to gather documents and complete forms at the last minute. Early preparation allows you to address any unexpected complications or missing information without the stress of impending deadlines. Maximize Deductions and Credits: Starting early provides ample time to review potential deductions and credits that can lower your tax liability. You may uncover overlooked opportunities for savings that could have been missed in a rushed approach. Organize Financial Documents: Early preparation allows you to organize and categorize your financial documents, ensuring that nothing is overlooked. You can create a system for tracking income, expenses, and receipts throughout the year, making tax time a breeze. Identify and Resolve Issues: Address any discrepancies or issues in your financial records well in advance. Early detection of errors gives you the opportunity to rectify problems and avoid complications with tax filings. Plan for Tax Payments: Knowing your tax liability early on allows you to plan for payments and avoid any surprises. Explore payment options and consider setting aside funds to cover your tax obligations. Helpful To-Dos for Early Tax Preparation: Need a place to start? Below are some helpful to-dos to jumpstart your tax preparation: Gather Income Documents: Collect W-2s, 1099s, and other income-related documents from employers and financial institutions. Review and Update Personal Information: Ensure that your personal information, including your Social Security number and address, is up to date. Organize Receipts and Expenses: Categorize and organize receipts for deductible expenses, such as business expenses, charitable contributions, and medical expenses. Contribute to Retirement Accounts: Maximize contributions to retirement accounts before the end of the tax year to potentially reduce your taxable income. Explore Tax Credits and Deductions: Research available tax credits and deductions applicable to your situation. Consult with a tax professional to identify opportunities for savings. Check Your Withholding: Review your withholding to ensure it aligns with your tax liability. Adjust withholding if necessary to avoid overpaying or underpaying taxes. Consider Professional Help: If your financial situation is complex, consider consulting with a tax professional early in the process. Professional advice can help optimize your tax strategy and ensure compliance with tax laws. The bottom line Starting your tax preparation early not only reduces stress but also allows you to approach tax season with greater ease. By taking proactive steps, organizing your financial records, and exploring potential savings opportunities, you can navigate tax season smoothly and make the most of available deductions and credits.

Food prices rose 2.7% between December 2022 and December 2023, according to the most recent consumer price index (CPI) report The specter of inflation has loomed large in the U.S., but it's impact is keenly felt on the rising cost of groceries. From the staple essentials to indulgent treats, it seems like every item on our shopping list is sporting a higher price tag. Food prices rose 2.7% between December 2022 and December 2023, according to the most recent consumer price index (CPI) report from the Bureau of Labor Statistics. The CPI uses indexes to measure changes in average costs of items in a given period; and is often know as the "cost of living" index. There are specific indexes for these items, including food costs. Factors driving rampant inflation and rising food prices Inflation is a complex economic phenomenon that occurs when the general price level of goods and services in an economy rises over time. While it affects various sectors, one of the most immediate and noticeable impacts is on consumer goods, particularly groceries. Here are some factors contributing to the recent increase in grocery prices: Supply Chain Disruptions: Disruptions in the global supply chain, exacerbated by the COVID-19 pandemic, have led to shortages and increased transportation costs. These challenges trickle down to the consumer, resulting in higher prices for goods. Droughts and Wildfires: Droughts and wildfires in the western U.S. led to lower-than-average crop yields from farms, driving up consumer costs for food, according to NPR. Rising Production Costs: Farmers and manufacturers face escalating costs for labor, raw materials, and energy. These increased production costs are often passed on to consumers. Food production costs are estimated to increase 4.1% in 2023, according to the U.S. Department of Agriculture. The War in Ukraine: The war in Ukraine has impacted the country’s ability to export food. Known as the "breadbasket of Europe," Ukraine’s food exports have historically accounted for 9% of the global wheat market and 12% of the corn market, according to the USDA’s Foreign Agricultural Service. Tips to manage and lower your grocery bill Now that we've explored the reasons behind the grocery price hikes, let's focus on practical strategies to navigate these challenging times without breaking the bank. Create a Budget and Stick to It: Set a realistic monthly budget for groceries. Plan your meals in advance and create a shopping list to avoid impulse purchases. Embrace Meal Prepping: Plan your meals for the week to minimize food waste. Look for recipes that use common ingredients to maximize your grocery purchases. Explore Generic and Store Brands: Opt for generic or store brands, which are often more affordable than name brands. Compare prices and quality to find the best value for your money. Take Advantage of Sales and Discounts: Keep an eye on weekly flyers and promotional offers. Stock up on non-perishable items during sales to save money in the long run. Shop in Bulk: Purchase non-perishable items in bulk to benefit from lower unit prices; or consider joining a wholesale club for additional savings. Utilize Loyalty Programs and Coupons: Sign up for loyalty programs offered by grocery stores. Clip coupons or use digital coupon apps to access discounts on various products. Explore Alternative Shopping Options: Consider shopping at local farmers' markets or discount stores for budget-friendly options; or explore online grocery delivery services, comparing prices and promotions. The bottom line While inflation may be driving up grocery prices, adopting strategic and methodical shopping practices can help you navigate these economic challenges. By planning ahead, making informed choices, and taking advantage of discounts, you can manage and even lower your grocery bill. Remember, a well-thought-out approach to grocery shopping is not only cost-effective but also contributes to a more sustainable and efficient use of what you put into your cart.

Step aside, quiet luxury--there's a new money trend hitting the ground Remember the "quiet luxury" trend? Thanks to HBO's show Succession, "quiet luxury" had a huge moment. From Instagram posts to the pages of Vogue, there were tons of "quiet luxury" brands like The Row and Bottega Veneta splashed everywhere. These were investment pieces that fetched thousands of dollars for a silk shirt or polished neutral coat. Then, came "loud budgeting," which encourages people to publicly talk about their budgeting efforts and being open about trying not to overspend. Instead of peer pressure to overspend money to get the latest shoe or handbag, "loud budgeting" normalizes saying “no” to an expensive dinner or a pricey vacation. “It’s not ‘I don't have enough,’ it’s ‘I don’t want to spend,’” creator Lukas Battle put it in a TikTok video with over 1.4 million views. Or, as he said in another clip, it's “‘sorry, I can’t go out to dinner — I’ve got $7 a day to live on.’” How to get started with "loud budgeting" "Loud budgeting" means having an open and honest dialogue with friends and family about money. If a friend suggests spending money that isn't a priority for you, offer up an alternative solution to spending time together. Through "loud budgeting," you can make it clear this is not about them, but rather about you sticking to your goals. Here are some ways to decline a friend's offer, while providing transparency on why without hurting anyone's feelings: "I can't go to that concert--I'm saving for a trip to Greece, but I'm happy to hang out for drinks beforehand." "Sorry, that restaurant is a little out of my budget, but I can host a potluck at my place if you're interested." "With student loan payments resuming, I'm just a little more budget conscious with my spending this year." Be loud, be proud The more honest you are (aka the "louder" you are), the more likely you'll be able to skirt pressure to overspend. Even though talking about money is often taboo, "loud budgeting" pushes you and others around you to be open about it. Brian Ford, a Northwestern Mutual wealth management advisor, says, “Many people can identify with having to prioritize essentials like food and housing over disposable expenses, and loud budgeting is giving people a community where making those difficult-but-responsible choices can be celebrated."

Two-thirds of respondents in a recent survey plan to make a financial resolution for the new year. As the clock strikes midnight and we usher in a new year, improving finances often top the list for many Americans' resolutions. A recent survey by The Ascent found that 67% of Americans are making financial resolutions for 2024. Read on for a deeper dive into how Americans are thinking about financial goals, New Year's resolutions, and anticipated challenges in the upcoming year. 67% of Americans plan on making a financial resolution for the New Year Every January, countless Americans set their sights on improving their finances According to The Ascent, two-thirds of respondents to their survey plan to make a 2024 financial resolution for the new year. The most common New Year resolutions include: Pay off debt: For 22% of respondents, paying off debt is a key goal for 2024. If paying off debt is on your list, prioritize high-interest debts and explore consolidation options. Establish a repayment plan and consider negotiating with creditors for lower interest rates. Save for milestones: Approximately 16% of Americans are saving for a big milestone, like buying a home or having a baby. If you're saving for a near-term milestone, keep your funds in a high-yield savings account, which allows you to both earn interest and maintain liquidity Save for large purchases: While many Americans are saving for a specific milestone, 12% are saving for a larger-than-usual purchase, like a TV or phone. Before you splurge, review your upcoming finances and ensure that you don't have any anticipated home or car repairs, or high-interest debt payments. Boost income: 11% of respondents hope to increase their income in the upcoming year. If this is also one of your goals, you could put together a plan to set yourself up for a promotion; or pick up a side hustle with a flexible schedule. Build an emergency fund: 8% of respondents are focused on building an emergency fund. According to Bankrate’s Annual Emergency Fund Report, 57% of U.S. adults are currently unable to afford a $1,000 emergency expense. Check out one of our posts on how to save $400 to jumpstart your emergency fund. Millennials and Gen Z are most likely to make financial New Year's resolutions The Ascent's survey found that 82% of millennials and 74% of Gen Zers plan to set financial goals for the new year, compared to 69% of Gen Xers and just 49% of baby boomers. Inflation and interest rates are the greatest concerns for Americans in 2024 Although 71% of survey respondents were confident about keeping their New Year's resolutions, many still had worries about inflation and interest rates. 85% of respondents with a financial New Year's resolution think inflation will make it harder to keep their resolution 80% of respondents with a financial New Year's resolution think higher interest rates will make it harder to keep their resolution New year, new money goals As we step into the new year, take time to reflect on your financial goals from the last year and how you'd like to improve over the next 12 months. Focus on ways to maintain accountability. Regularly review your financial progress and adjust your strategies accordingly. Enlist an accountability partner, whether a friend, family member, or financial advisor, to provide support and guidance on your journey. By adopting a thoughtful and strategic approach, you can turn the new year into an opportunity to build lasting financial habits.

Many Americans assume that inheritances will solve their money problems--but don't count on it As life expectancy increases, and older Americans are living longer, the idea of inheriting a significant sum of money has become a hopeful solution for many facing financial challenges. However, depending on inheritances to bail you out of money problems is a risky strategy that could leave you unprepared for the realities of the future. Longer Lifespans, Smaller Inheritances One reason your parents may leave a smaller inheritance than you expect is that their generation is living longer. The number of Americans who are 95 and older grew 48.6% from 2010 to 2020, according to the 2020 Census. The demographic shift towards longer lifespans means that older Americans are not only living longer but also spending more of their savings during their retirement years. As a result, the inheritances left behind may be smaller than anticipated, leaving heirs with less financial support than they might have expected. Medical expenses and long-term-care costs could also reduce the amount of money you’ll receive when your parents and grandparents pass away. Seven out of 10 people age 65 or older will need some kind of long-term care in their lifetime, according to the National Center for Health Statistics. The median cost of a semi-private room in a nursing home is $7,908 a month, according to Genworth’s Cost of Care survey. Additionally, a 2020 Federal Reserve analysis found that the average inheritance was $46,200. However, even that figure was inflated by legacies passed down in wealthy families, according to the Federal Reserve. Uncertainties in Estate Planning, Fraud, and Inflation “People’s assets at 60 can be greatly reduced by the time they’re 85,” he says. “Inflation, the stock market going up and down, and even mismanagement of their finances can lead to parents having less money to leave their children,” says Bill Schretter, a certified financial planner with wealth-management firm Allworth Financial. Fraud losses are another concerning issue. As people age, they’re increasingly at risk for cognitive decline, which makes them more vulnerable to scams, Schretter says. Older Americans lose more than $28 billion a year because of fraud, according to AARP. As a result, the complexity of estate planning, tax implications, fraud inflation, and other unforeseen expenses can significantly impact the amount of money left as an inheritance. Relying on an uncertain future windfall might lead to financial disappointment, especially if unexpected costs or legal challenges arise. The Importance of Financial Independence Inheritances are typically distributed after the passing of a loved one, and it's unwise to hinge your financial stability on events that are beyond your control. If you have immediate money problems, waiting for an inheritance might not provide the timely relief you need. Depending on inheritances to solve financial woes undermines the concept of financial independence. Building your financial security through savings, investments, and responsible budgeting is a more proactive and reliable approach than banking on uncertain future windfalls. Instead of relying solely on potential inheritances, consider focusing on strategies that promote financial independence. This includes building an emergency fund, investing wisely, paying down debt, and creating a comprehensive financial plan that aligns with your long-term goals.

If you find yourself juggling various loans and credit card balances, debt consolidation could be the game-changer Managing multiple debts can be a daunting task. For those seeking a streamlined solution to manage debt, consolidation may be a effective route. Understanding Debt Consolidation Debt consolidation involves combining multiple debts, such as credit cards, personal loans, or medical bills, into a single, more manageable payment. This consolidated debt is often obtained through a new loan or a credit card with a lower interest rate. Three Reasons to Consider Debt Consolidation 1. Simplified Finances Dealing with multiple creditors, due dates, and varying interest rates can be overwhelming. Debt consolidation simplifies your financial landscape by consolidating all your debts into one, easy-to-manage payment. This streamlining not only reduces the chances of missing payments but also eases the mental burden associated with juggling numerous financial responsibilities. 2. Lower Interest Rates and Single Monthly Payments One of the primary advantages of debt consolidation is the potential for lower interest rates. By securing a consolidation loan or transferring balances to a low-interest credit card, you can significantly reduce the overall interest you pay. This not only saves you money but accelerates your journey to becoming debt-free. Additionally, instead of managing multiple payments, debt consolidation enables you to make a single monthly payment. This simplifies budgeting and ensures you stay on track with your debt repayment plan. Additionally, you can customize the repayment term to align with your financial goals and capabilities. 3. Preserve and Improve Your Credit Score When managed responsibly, debt consolidation can positively impact your credit score. By paying off multiple debts and reducing your credit utilization ratio, you demonstrate financial responsibility to credit bureaus. As a result, your credit score may see improvement over time, opening doors to better financial opportunities in the future. Choosing the Right Debt Consolidation Method It's essential to evaluate the various debt consolidation options available and choose the one that best suits your financial situation. Whether it's a personal loan, a balance transfer credit card, or a home equity loan, understanding the terms, interest rates, and potential fees is crucial in making an informed decision. 1. Consolidation Loans Consolidation loans involve taking out a new loan to pay off existing debts. This loan typically has a fixed interest rate and a structured repayment plan. It provides a clear timeline for debt elimination and ensures a consistent monthly payment. 2. Balance Transfer Credit Cards For those with credit card debt, balance transfer credit cards with low or zero introductory interest rates can be an effective tool. Transferring existing balances to a card with a lower rate allows you to save on interest and pay down the principal faster. 3. Home Equity Loans or Lines of Credit Homeowners may consider using the equity in their homes to secure a loan for debt consolidation. While this option may offer lower interest rates, it's crucial to weigh the risks, as failure to repay could put your home at risk. The Bottom Line Debt consolidation is a simplified and cost-effective approach to managing their debts. By embracing this method, you can reduce interest payments and pave the way to a debt-free future. However, it's essential to choose the consolidation method that aligns with your financial goals and to pair this strategy with responsible financial habits.

The U.S. Department of Education is expected to release the Free Application for Federal Student Aid, or FAFSA, by December. 31. Here are the biggest changes to financial aid applications The Free Application for Federal Student Aid—or FAFSA—can be a dreaded process for college-bound students and their parents across the U.S. The FAFSA application has typically been known to be lengthy, confusing, and detailed—resulting in billions of dollars of unclaimed aid. However, the federal government is addressing those concerns by revamping FAFSA. The changes are a result of the FAFSA Simplification Act (also known as "Better FAFSA"), which passed in December 2020 as part of the pandemic relief package. The new FAFSA application is expected to launch on December 31, marking the most significant changes to how students apply for financial aid in decades. “It is going to be substantially different, and that is good news,” said Michael Lemus, the outreach and marketing manager at the California Student Aid Commission. “Although, of course, people are like, ‘Oh my gosh, what’s going to happen?’” “The FAFSA and financial aid process can be very overwhelming, very complex,” Lemus said — something he says applicants have vocalized to officials for many years. “And the good news is that, yes: Those changes are really meant to streamline the application.” Here’s a breakdown of the major changes happening with the 2024-25 form. The timeline will be shortened. A big change is that the FAFSA is usually open from October 1 to March 2. But this year’s release was postponed to incorporate all the changes for "Better FAFSA," with a soft launch expected to open on December 31. Colleges will have to review applications and create financial aid offers in a shorter period, and after receiving those packages, many families will have to make decisions about where to attend on a condensed timeline. The takeaway? Everyone has three fewer months to complete the FAFSA application. Additionally, once you submit your FAFSA, you won’t be able to edit the form until February. For example, if you submit the form the day it opens, and decide a week later you want to add another college to your application, you won’t be able to send your financial information to the new college right away. The bottom line: If you’re considering applying to any other schools, add them to your FAFSA application when you fill it out so you’re not waiting weeks to edit your form. Nothing happens if you submit a FAFSA application to the school but don’t end up applying there. The application will be simpler, with direct transfer from the IRS. One of the most significant changes to the FAFSA application is that number of questions on the form has been cut by over half. Fewer and simpler form questions is largely in part to data sharing with the IRS. Before directly transferring tax information from the IRS was clunky, unreliable, and difficult. Now, it actually will be a requirement for filling out the form online. Once your income information is inputted, you’ll only see relevant questions. Students with lower household incomes and uncomplicated tax filing situations could see as few at 18 questions. More students will qualify for Pell Grants. The formula for awarding Pell Grants has been revamped: An additional 600,000 students will be newly eligible for a grant, while about 1.5 million students who are already eligible for a Pell Grant will now qualify for the maximum award. The shorter, redesigned form is getting a lot of the spotlight, but Cook says the expanded grant eligibility is the “sleeper headline that I want students to know about.” The term Expected Family Contribution is replaced with Student Aid Index. There is a new metric to determine how much a student can qualify for aid, said Shelveen Ratnam, a spokesperson for the California Student Aid Commission. The Student Aid Index (SAI) will replace the term Expected Family Contribution (EFC), which was considered misleading to many families. Instead, the FAFSA form will refer to SAI, which is a measure of financial strength that colleges can then use to award their financial aid dollars. The new figure will still be presented as a dollar amount. “The SAI will help inform how much federal aid, and in some instances other institutional aid, for which a student might qualify, "says Ratnam.

If you find yourself drowning in credit card debt, fret not--here's how to regain your finances Credit cards have become an integral part of our finances. While they offer convenience and flexibility, they can also lead to financial pitfalls if not managed wisely. Here are some practical strategies to dig yourself out of credit card debt: 1. Assess Your Debt Situation: Before devising a plan, it's crucial to understand the full extent of your debt. Gather all your credit card statements and make a list of outstanding balances, interest rates, and minimum monthly payments. This step will give you a clear picture of your financial standing. 2. Create a Realistic Budget: Developing a budget is the cornerstone of effective debt management. Categorize your monthly expenses, differentiating between essential and non-essential costs. Allocate a portion of your income to paying off your credit card debt. 3. Determine Snowball or Avalanche Method: If you’re looking for tried-and-true methods of tackling debt, consider the snowball method or the avalanche method. The debt snowball and debt avalanche methods are two popular strategies for paying off multiple debts. Both approaches focus on eliminating debt, but they differ in their prioritization of which debts to pay off first. The snowball method starts with the smallest debt and works its way up, regardless of the interest rates. Allocate any extra funds to the debt with the smallest balance. Once that debt is paid off, roll the amount you were paying on it into the next smallest debt. Continue this process, "snowballing" your payments from one debt to the next until all debts are paid off. The avalanche method, on the other hand, starts with the highest-interest debt and works its way down. The avalanche method is focused on minimizing the total interest paid over time, by making minimum payments on all debts except the one with the highest interest rate. Allocate any extra funds to the debt with the highest interest rate. Once that debt is paid off, roll the amount you were paying on it into the next highest interest debt. Either method can be successful, in part because it allows you to successively increase the speed at which you pay off your subsequent debts. The snowball gets bigger as every credit card is paid off; while the avalanche increases in strength as you eliminate your high-interest balances. Both of these methods are effective--some people revel in the quick wins of the debt snowball, while others prefer the cost-saving approach of the debt avalanche. 4. Negotiate Lower Interest Rates: Reach out to your credit card issuers to negotiate lower interest rates. Explain your financial situation, and many companies may be willing to work with you to create a more manageable payment plan. Lowering interest rates can significantly reduce the overall amount you need to repay. 5. Consider Debt Consolidation: Explore debt consolidation options, such as transferring your balances to a single card with a lower interest rate. This simplifies your payments and may save you money in interest. However, be cautious of potential balance transfer fees and ensure that the new interest rate is genuinely advantageous. Conclusion: Getting rid of credit card debt requires dedication, discipline, and a well-thought-out plan. By assessing your situation, creating a realistic budget, negotiating with creditors, and exploring various repayment strategies, you can eliminate your credit card debt. Think of each credit card payment as one more rung on a ladder, and you’ll be climbing out of your debt hole sooner than you realize.

We're more likely to spend after a break-up. Should we budget for it? Navigating the aftermath of a breakup can be emotionally challenging, but it's crucial not to overlook the potential financial impact. Financial advisers often push us to have a rainy-day or an emergency fund to cover unexpected expenses, such as medical bills or home repairs. But we are less inclined to budget for expenses associated with emotional turmoil like heartbreak, despite being likely to indulge in them whether we can afford to or not. Scott Rick, a behavioral scientist at the University of Michigan, co-wrote a 2014 study that showed that engaging in retail therapy could reduce anxiety and sadness. As a result, it's not uncommon for people to spend impulsively as a way to cope with a breakup. To avoid derailing your financial goals, set a strategic budget in place as you recover from your heartache. Step 1: Assess the Emotional Damage on Finances Breakups can cause people to spend way over their budgets, and the cost-of-living crisis only exacerbates this. Plus, it’s not just the post-break up shopping that makes break-ups expensive. New research from Experian finds that the average breakup costs a couple $1,287, which includes finding a new place to live. On top of that breakups can lead to emotional spending, from retail therapy to impromptu getaways. Recognize the potential financial pitfalls and acknowledge the need for a thoughtful budget to avoid unnecessary debt. Step 2: Create a Post-Breakup Budget First things first--evaluate your finances. Take stock of your current financial situation, including income, expenses, and any shared financial responsibilities that may have changed due to the breakup. Identify essential expenses; and prioritize necessities like rent, utilities, and groceries. Ensure these are covered before allocating funds for discretionary spending. Next, decide how you want to allocate your discretionary spending as you manage your heartache. Do you need a larger DoorDash allocation because you won't feel like cooking as much? Do you need a going-out budget to reconnect with friends and go out on first dates? Or do you to cordon off a portion of your discretionary spending to sign-up for gym classes or to pick up a new hobby? If you can't afford to set aside much of your budget for discretionary spending, you don't need to splurge on costly retail therapy either. Consider alternative, budget-friendly methods for self-care, such as journaling, meditation, or outdoor activities. Step 3: Resist Impulse Spending Before making any non-essential purchases, give yourself a cooling-off period. This prevents impulsive decisions driven by emotional distress. Carl Richards, a financial planner and director of investor education at the BAM Alliance, recommends waiting 72 hours before purchasing anything outside of your budget. You can also seek support from loved ones, to avoid impulse spending. Reach out to friends or family for emotional support rather than relying on material possessions to fill the void. If all else fails, try filling your shopping cart, but then ultimately abandon it. According to Scott Rick's 2014 study, even found that hypothetical, simulated purchases were soothing. Step 4: Avoid the Pitfalls of Credit Card Debt While some light retail therapy after a breakup is nothing to worry about, understand that excessive spending won't heal emotional fissures. Instead, focus on long-term financial planning, including limiting your credit card usage. Be mindful of your credit card expenditures, and pay attention to your credit utilization ratio. High balances can negatively impact your credit score. Conclusion It's no wonder why heartbreak can take a toll on both your emotions and your wallet. “There are a multitude of reasons why we might spend money more impulsively after a breakup,” explains relationship therapist, Rachelle Watson, “I often see this tendency driven by a need to exercise power or control, especially if we’re on the receiving end of the breakup.” However, by proactively setting a "breakup" budget, you can emerge from heartbreak with both your heart and your finances intact. In fact, Jessica Lyons, a financial advisor at Black Swan Capital advises, “No matter how the breakdown of a relationship occurs, there is a period of adjustment and change. A budget is one area where it is possible to take control. This can be an empowering experience."