Money Management

All public school students in Pennsylvania will get free breakfast this school year due to budget increases. Find out how this news may help your finances. 

It’s back-to-school season, and there’s good news for Pennsylvania students and their families. An additional $46.5 million was allocated as part of the 2023–24 budget to fund free universal breakfast to the state’s 1.7 million public school students. Every student can now receive a free breakfast when school is in session this upcoming school year. This news will likely offer relief to many families across the state.

Breakfast is crucial for healthy child development

Breakfast is essential for growing children and teens. Studies have found that eating breakfast every day has a positive impact on the cognitive development of students. Kids who eat breakfast regularly have improved test scores, greater concentration, and better energy levels.

Unfortunately, not every child is served a nutritious meal at home before each school day begins. Rising living costs and growing financial struggles significantly impact whether families can afford to feed their children a healthy and filling breakfast.

According to the USDA’s Food Price Outlook for 2023 and 2024, food costs are expected to grow more slowly this year than last, but prices remain above historical average rates. But there’s some good news: Many states are finding ways to provide free meals to more students, and Pennsylvania is one of the states prioritizing the health and well-being of kids.

Every student in Pennsylvania qualifies for free breakfast

During the 2023–24 school year, every student in Pennsylvania can receive free breakfast when school is in session. Breakfast will be available to all students, regardless of household income. State leaders hope this will ensure that all students receive a nutritious meal at the start of the day and help combat the stigma around food insecurity.

Many children who qualify for breakfast through the National Free Breakfast Program feel embarrassed and ashamed due to the stigma associated with needing free food. Students may feel more comfortable eating free breakfast when it’s made available to all kids statewide.

No matter your household’s financial situation, life is expensive these days. If you’re a parent of a child in Pennsylvania, this initiative can help you keep more money in your bank account while also ensuring your child gets the fuel needed to learn to the best of their abilities.

Additional resources are available to families in need

You’re not alone if you’re struggling financially. When going through a difficult financial situation, it can be challenging to afford necessities, including food. But you don’t have to go without food. Here are a few resources to explore if you need assistance feeding your loved ones.

1. The Supplemental Nutrition Assistance Program

The Supplemental Nutrition Assistance Program (SNAP) is a federal resource that helps low-income households supplement their grocery budgets. In 2022, there were more than 41 million SNAP participants nationwide. In Pennsylvania, 14% of the state’s population used the program.

Once enrolled, SNAP benefits are loaded on an EBT card, which you can use to purchase eligible food and drinks at participating retailers. Be sure to check out some little-known perks of SNAP benefits that make the program even more valuable.

2. National School Lunch Program

Families meeting the income requirements and those who receive certain public benefits like SNAP can apply for the National School Lunch Program. Depending on your household income level, you may qualify for reduced-price or free school lunches for your child.

Note: During the 2023–24 school year, Pennsylvania students who are eligible for reduced-price lunches through the National School lunch Program will receive free lunch.

3. Food banks

Food banks are another resource that families can utilize when facing food insecurity. Feeding America’s food bank locator can be helpful if you’re unsure where your closest food pantry is. Getting food from a food bank in your community can help ensure your family is well fed.

Don’t be afraid to utilize resources like the ones mentioned above. Asking for and accepting help when you need it is brave. If you’re feeling discouraged about your financial situation, remember that your current struggles don’t define you, nor do they define your future. Check out our free personal finance resources if you’re looking for tips on improving your finances.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Putting off retirement savings can come at a huge cost. Keep reading to learn how to tell whether focusing on debt first is a good move. 

Being in debt isn’t fun, and you may want to repay what you owe as soon as possible. In fact, you may even be tempted to put off saving for retirement because of it.

Before you throw every spare dollar at your debt, though, it’s important to understand the opportunity cost of putting off retirement investing. You’ll want to think very carefully about when waiting to invest for your future is really the right choice and, in many cases, you’ll discover you’re better off not waiting to start saving for your later years.

There are a few limited exceptions, though. In fact, here are three scenarios when it may make sense to delay retirement savings to repay debt first.

1. When you have very high interest debt

If you have debt at an extremely high interest rate, taking care of that should be your first priority. For example, if you have payday loans, you could face upwards of a 400% ARP on your loans. In this situation, the debt is so expensive that it’s worth giving up any retirement savings benefits (like tax breaks or compound growth) to take care of it.

If you have low-interest debt, on the other hand, it makes no sense to put off investing for your future to deal with it. A mortgage loan at a rate of 4.00%, for example, should be paid off slowly over time, and it doesn’t always make sense to make extra payments.

Since you can expect to earn around a 10% average annual return by investing in an S&P 500 index fund (based on historical averages), the return on investment (ROI) that you’d get from early mortgage payoff is below the return you’d get from investing for retirement — even before factoring in any special tax breaks.

If your debt is kind of in the middle, like a credit card at a 20.00% rate, then you’ll have to think more carefully about what to do by considering other factors mentioned below. Consider the time it will take you to pay off your debt and the types of retirement investment accounts you have access to.

2. When you don’t have access to a 401(k) match

If you have access to a 401(k) match at work, you should almost never delay investing in it to repay debt — except if you have extremely high-interest loans like payday loans.

See, a 401(k) match is free money your employer provides. Your employer will typically match a percentage of contributions (such as 50% or 100%) of what you invest. This means as soon as you put money in, you get either a 50% return or a 100% return on your investment immediately without any risk.

Since even high interest debt, like credit card debt, is well below a 50% or 100% rate, you should pay the minimums on your debt first, then switch to investing in your 401(k) to max out your match, then consider paying extra on what you owe.

3. When you’ll be able to pay off your debt quickly

If you can pay off your debt pretty fast, you may not do a whole lot of damage to your retirement savings efforts. In fact, if you can retire the debt and free up the money you were paying toward it to make larger retirement account contributions, you will often end up better off.

If it will take you a very long time to repay your debt, though, then the delay may not be worth it because you’ll miss out on compound growth. Let’s say, for example, that you want to end up with a $500,000 nest egg by age 65 and you’re 30 now. If you get started investing right away and earn 10% average annual returns, you would have to invest about $154 a month to hit your target.

But if you waited a decade because you were making extra debt payments instead of sending extra money to a retirement account at your brokerage firm or with your employer, you would have to invest $423.66 every month instead. Putting off retirement savings to focus on debt payoff would mean that for the next 25 years, you would have to put an extra $269.66 into your investment account each month to end up with your desired amount.

To avoid that, it may be better to make sure you’re hitting your retirement savings targets first before throwing extra money at your debt. Or, even better, set a retirement goal, hit that first, and then find some extra money for debt repayment. That could include doing things like taking on a side gig or cutting expenses by tracking spending, couponing, and giving up a meal or two out each month.

Ultimately, you’ll need to think about the big picture when deciding whether to delay retirement savings to pay down debt. But don’t let a desire to be debt-free lead you astray. Do the math, consider your interest rate and your repayment timeline, and make the choice that’s right for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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