Alicia Nelson-Bell, HCHC

While experiencing times of high inflation and after spending the last couple of years in a pandemic, it is more important now than ever before to make sure that you have money in your emergency fund. Notice I didn’t say if emergencies happen, but when. According to a recent survey, 36% of Americans reported withdrawing from their savings accounts in the first half of this year to help keep up with the rising costs of the goods and services in the midst of high inflation. As you could imagine, during that same time period, the personal savings rate has fallen by almost 3% from what it was in December of 2021 to only 5%. Take this as your personal reminder to keep/begin contributing to your emergency fund, so you don’t find yourself stressed out and taking on new debt when bumps come up in the road of life, no matter how hard it may seem. 

Vincenza Vicari-Bentley, AFC

What happens to spending during periods of high inflation? There is a rise in the prices of goods and services reducing our purchasing power. It feels like you’re spending more but getting less. So how can we identify and eliminate wasteful spending to get back some of that purchasing power?

My number one strategy is to track your spending.  How do you know where you can cut back if you don’t know where your money is going? If you don't yet have a monthly budget, create one this month. Another reason it’s important to track your spending is to become more aware of your spending habits. If you don’t know where your money is going, you won’t be able to recognize negative spending behaviors that you can easily change to make your money work for you.

For example, you might learn from tracking your expenses that you are paying monthly for a service you don't use (like a subscription), in which case you could eliminate it or switch to a cheaper one. Or, you might realize that your habit of dining out is costing you a lot more than you thought. 

How to track expenses? You can be low-tech and use a notebook or you can use a budgeting app or software - and there are a lot of free ones out there! It may seem like a lot of work to keep tabs on your expenses. If you’re not used to doing this start slow and just track your food spending for a week.

Understanding why and how to track spending with just a little effort can help you successfully establish a new habit. This new habit can lead to increased spending awareness and eliminate wasteful spending habits. Everyone could benefit from scrutinizing a bit more where our hard earned money goes!

Vincenza Vicari-Bentley, AFC
Empowering Financial Wellness Program Coordinator

First let’s talk about what disability insurance is and why you need it. During our working years the ability to earn an income is important and necessary for survival. But what happens if you lose your ability to work, even temporarily? The Social Security Administration estimates that one in four 20-year-olds will experience a disability for 90 days or more before they reach age 67 and during their working years. You are also three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance. While these are sobering statistics, we can consider a disability insurance policy to protect our assets. 

Alicia Nelson-Bell, HCHC
Empowering Financial Wellness Program Coordinator

It can be hard to feel like you are doing “enough” to teach your kids especially when it comes to money. In a T. Rowe Price survey, almost 60% of parents said they were having money conversations with their kids once a month or less. These same parents also ranked money as being one of the top 5 most uncomfortable topics to talk about with their kids. Further, only 26% of parents surveyed felt schools were doing a good job teaching kids about money. And opinions and perspectives about money from the media are all over the place so it’s really up to you to proactively teach your children positive money management skills.

Where do you start to teach your kids the financial principles that will stick with them through the rest of their lives? We have a couple of free resources! Read on!

Amanda H. Christensen, AFC, USU Extension Professor
Utah Money Moms Blog Editor

Prep for back to school is in full swing at my house. I'll admit, prepping one child, a kindergartener, presents a lot less stress on my pocket book than my friends and family with five kiddos in three different schools. 
 
Why are we feeling the pinch this year? The Consumer Price Index reports prices on goods and services overall are up 8.6% nationally. In Utah it’s even higher at 10.4% compared to this time last year. It’s been 40 years since we’ve seen prices rise that fast in just one year’s time. So, it matters this year especially how we navigate back to school spending!
 
Regardless of how many kids and how many school supply lists, pairs of shoes, and fees invading your wallet this month, I hope these seven tips will help things be a touch more affordable.