Did you know that September is Life Insurance Awareness Month? To kick LIAM off, the infographic below by LifeHappens.org show the reasons why most people do not get Life Insurance.
None of us likes to think about death. But it happens, even to young people. What happens to your loved ones after your death (whenever that may be) depends on what you do today with your money: spend a few hundred dollars on an upgrade to a perfectly fine smartphone, or put a portion of that into life insurance to protect your family.
If you were to die, will your family remember that phone? Or that they didn’t have to move from your home, your neighborhood or school? You have a choice. How do you want to be remembered?
Figuring out how to pay for college can be a challenge. You know other families accomplish it, but how?
That’s the question asked — and answered — in the annual study, How America Pays for College. For eight years, Sallie Mae® and Ipsos have interviewed undergraduate students and parents of undergraduate students to uncover how they’re funding higher education, the choices they’re making, the value they place on education, and more. The 2015 study reveals that:
College spending is up. Families spent an average of $24,164 on college — including tuition, room and board, and other direct and indirect expenses. That’s 16 percent more than last year and the most significant increase in five years.
Mom and Dad are #1. Parent income and savings were the top source of funding, surpassing scholarships and grants for the first time since 2010.
Not everyone borrows. Sixty-two percent of families reported they did not borrow for college in academic year 2014-15.
Students are doing their part. Working students are now the norm — 74 percent of students worked at some point to help cover costs.
According to How America Pays for College 2015, families overwhelmingly agree college is a worthwhile investment and they’re willing to stretch financially to meet the cost.
Three in four adults agree that they could benefit from guidance and answers to everyday financial questions from a professional, do you agree with them too?1
Since women control or influence the handling of the household finances, here are five things every woman should know about their finances, including a few tips from New York Life to get you started on the path to Financial Freedom.
#1 Maximize your tax credits 2:
Each year the deductible amount you can contribute to a retirement account is increased for inflation, and there are catch-up contributions for those 50 or over.
You can receive a $1000 tax credit for each of your qualifying children, in addition to each dependent’s personal exemption. Don’t forget to take this credit-it’s like receiving $1000 tax-free in your pocket, as long as your income doesn’t exceed the limitations.
The child and dependent care credit will cover up to $3,000 of qualifying expenses if you pay a babysitter or day care center so you can work or go to school.
#2 Become a S.M.A.R.T. spender:
Set S.M.A.R.T. financial goals (Specific, Measurable, Achievable, Realistic and Time bound) and create a spending plan in 4 steps3:
1. List your income
2. Compare your income and expenses
3. List your expenses
4. List your resources and set priorities
#3 Develop a savvy investment strategy:
Finding the right mix of investments depends on your available assets, your financial goals, your time horizon, and your tolerance for risk. It is important to ensure a balance between three things: liquidity, return, and risk. Start systematically investing as soon as you are able so that a reasonable amount is saved, even after just a few years. The compounding effect can help to speed up your savings4.
#4 Know your credit score:
Based on the factors below you are assigned a credit score between 300 (low) and 850 (outstanding). Here are the main areas in which you are graded and given credit scores, and the approximate weight that each area is given5:
Payment history: 35%
Outstanding debt: 30%
Credit history: 15%
New credit and types of credit: 20%
#5 You are your most important asset:
For most people, human capital is the missing piece of their portfolio. You insure your car, in the event you get into an accident. You insure your belongings, in case they’re lost or stolen. Your biggest asset is your ability to get up every day and provide for your family, whether by working or being the primary care giver. How do you insure your biggest asset? Through life insurance products.
A financial professional is trained to help you select and recommend vehicles that are suited to your protect your specific needs. You might find that working with a trained financial professional can help you to make well-informed decisions and stick with your financial plan — it is important that this is someone you are comfortable working with.
Click here to learn more about how New York Life can help you educate yourself on financial matters and set you on the path to a secure future.
Article by New York Life Insurance Company:
1 The 2014 Consumer Financial Literacy Survey, The National Foundation for Credit Counseling, http://www.nfcc.org/NewsRoom/FinancialLiteracy/files2013/NFCC_2014FinancialLiteracySurvey_datasheet_and_key_findings_031314%20FINAL.pdf
Paying for college may be challenging for some parents to think about or discuss. Sallie Mae shares five helpful tips on how to have the Pay-for-College Talk.
Get the facts
First, you need to know how much a year of college will cost — tuition, books, room and board, and other expenses. Once you have a number, you can begin to figure out how you’ll pay for it — or if your student needs to focus on a less-expensive school.
Make a plan
An online calculator can help you estimate costs so you can develop a plan. College Planning CalculatorSM at SallieMae.com/CollegePlanningCalc is an easy-to-use tool with an added feature for families who are considering borrowing to pay for college: important guidance on loan affordability to help them understand the impact of a monthly student loan payment on a starting salary. It includes a salary guide to help students and their families determine a manageable monthly loan payment that corresponds to the student’s anticipated annual salary.
Engage your student
Don’t make paying for college a parents-only project. If they haven’t already started, remind your student that they can save birthday and holiday gift money. Summer jobs count, too. The more they can save for college now, the less they’ll have to borrow later on.
Be open
Be honest with your student about how much you can contribute to college costs —and that they’ll be responsible for everything else, either through scholarships and grants and/or student loans. Plus, when you create your plan with the College Planning Calculator, share it with your student at each step.
Do it now
Don’t wait till acceptance letters start arriving to have the financial talk with your student. Having a plan in place and knowing how you’ll pay for college will make the overwhelming senior year an easier experience.
Financial Freedom means different things to different people. For some financial freedom may be having a significant savings for emergencies or retirement, paying off debt and living debt free, or ownership of a home or business. Whatever Financial Freedom may mean to us, individually; there is a common fundamental financial foundation that must be established.
How do you eat this Fundamental Financial Foundation elephant? One bite at a time.
In response to hundreds of people across the country asking for financial help in an easy to understand and implement manner, Tarra Jackson, known as Madam Money, a seasoned financial executive and syndicated financial contributor, is introducing the 30 Days to Financial Freedom Challenge (#30D2FF).
Who Can Accept the Challenge and Participate
This challenge is a free, online financial program designed to help 1,000+ adult individuals and families who are ready to achieve their goals for Financial Freedom. Feel free to challenge your family and friends to access their Financial Freedom in 30 days.
How to Accept the Challenge
To accept and participate in the 30 Days to Financial Freedom Challenge, simply
Text 30D2FF to 313131 for Financial Freedom Simple Tasks Text Alerts.
When does the Challenge Start
The Challenge begins on Monday, May 4, 2015. Participants will receive a simple task to complete via email or text alert each week day for 6 weeks to help them work towards their financial freedom. The challenge also gives participants helpful lessons and resources to help them on their journey.
We look forward to connecting, sharing and reaching Financial Freedom with you.
Tarra “Madam Money” Jackson is a financial educator, international speaker, author, and wealth empowerment strategist helping you heal, build, and grow your wealth.
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