FINANCE MATTERS
Learn how to budget and save for big-ticket items When faced with making a significant purchase, or even financing an unexpected emergency expense, consumers are tempted turn to credit to pay for the goods or services. While credit utilization maintains an important place in building a strong financial reputation, it can quickly put a person underwater financially, and interest fees can increase the price of big-ticket items by a significant amount. The financial resource The Motley Fool says American households carried a total of $17.1 trillion in debt as of the second quarter of 2023. A report from Equifax Canada indicated Canadian consumer debt rose to $2.32 trillion in 2023. Substantial consumer debt can limit financial flexibility, so individuals who are looking ahead to new vehicles or vacations or even home renovations can first try to save for such expenses in lieu of borrowing. Budgeting and saving may not lead to immediate gratification, but it can help consumers avoid debt and ultimately create more financial flexibility down the road. • Know exactly what you have. Too often people take a casual approach to their finances. At any given time they
may not know whether the money they’re making is actually covering all of the bills, and how much money, if any, is left over. Spend a few months cataloguing all credits and debits to your accounts. Pay attention to times of year when income is higher or when spending increases. • Know your goal and price. Rayhons Financial, a financial services company, suggests identifying exactly how much you’ll need for a purchase. Estimate on the high side of expenses so as not to go over budget. Treat a bigticket item just like a utility bill. • Create a separate expense account. When all of your funds are together in one bank account, it is easier to spend the money on other purchases rather than the larger one in mind. Open a separate account and move your “extra” earnings into that account to save for your large expense. Automating the savings by setting up an automatic deduction deposited into this account on payday can make savings even easier. • Review your budget periodically. Figure out if there are areas where you can cut back and allocate more money to your overall savings or the special
savings for the big-ticket item. For example, you may be able to downgrade to a more manageable mobile phone plan or dine out less frequently. • Time the purchase right. In addition to only buying when you have the money saved, you can look at the calendar to figure out the best time to make that purchase. Does your state or province offer a sales tax holiday? Some
times of year you may get a bonus, tax refund or birthday gifts that can be earmarked for big-ticket items. Avoid purchasing big items during times when you must pay for other significant expenses, such as tuition, summer camp fees and insurance payments. Some simple financial planning can help people save and budget for bigticket items more readily. MM23C498
FINANCE MATTERS
Are you a money whisperer? New study reveals 6 in 10 Americans don’t talk about money
It may be costing them their dreams. A majority of people believe more candid “money talks” have the power to change the world: 66% remark that open conversations can help people build generational wealth, improve the gender wage gap (62%) and over half say that money conversations could improve workplace transparency (56%). Carol Waddell, president of Empower Personal Wealth, says, “Conversation is a currency on the pathway to financial security, and open discussions about money can have a truly transformative effect on society. Our study shows people believe that clarity about their financial picture, talking to an advisor and financial education are key to achieving financial success.”
money motto: “You only live once, so don’t worry too much about finances.” Despite the saying, more than a third (37%) say they regularly worry. That’s even higher for Gen Z and millennials (51% and 49%) and women, who are considerably more stressed about their personal finances than men (42% versus 33%). TALKING ABOUT MONEY AT WORK Figuring out personal finance is intimidating and overwhelming for half of Americans (48%), and when it comes to managing their money, 39% say they don’t know where to start, including 41% of women and 37% of men. Compare that with sky-high confidence managing money at work: 73% feel at ease overseeing company budgets and the majority say they clearly understand their employer’s finances and performance (70%).
ees to work harder (50%) and help avoid miscommunications (60%). SPEAK WITH AN EXPERT. More than three-quarters (77%) of Americans want to see society take on more “money talks” about ways to save for the future (41%), money mistakes they’ve made (36%) and basic financial literacy (34%). A quarter want more discussions about how to negotiate (26%) and pay for big expenses (24%). Even more open dialogue about the emotional aspects of money would nancial success. be helpful for 20% of respondents. Ultimately, people believe more open conversations about money can have a truly transformative effect on society: 66% think it can help more people achieve financial freedom.
“In these challenging times, staying tight-lipped about money is something people can no longer afford. As part of our mission to advance financial freedom for all, we’re here to help people speak up and take the next step for a brighter financial future,” says Waddell.
So, how does America get there? Respondents agree that clarity about If conversation is a currency on the Reassuringly, people have a strong their financial picture (40%), talking pathway to financial security, it’s time grasp on employer benefits like the to an advisor (36%), and financial ed- to start speaking up. availability of their company’s 401(k) ucation (34%) are key to achieving fiplan (80%) and say they know how their pay raises work (77%). Advocating for themselves is where it gets tricky. One-third (33%) of people don’t feel comfortable asking for an increase. Men feel more comfortable asking for a pay raise than women (74% versus 59%). Better market data on compensation could potentially boost negotiation confidence and nearly half (49%) of survey respondents (and a majority of millennials, 69%, and Gen Z, 71%) believe discussing salaries can lead to better career opportunities.
GROWING UP WITHOUT MONEY CONVERSATIONS Don’t talk about money: that’s the message half (52%) of Americans hear, learning it’s impolite to talk about finances (26%), and certainly not what Americans say they avoid uncomyou earn (35%). The taboo prevails for nearly two-thirds (60%) of people who fortable money talk at work (68%), and more than half (56%) wish disdon’t feel comfortable on the topic. cussing salaries wasn’t taboo. Do Americans recall stowing away coins you know how much your co-workin a piggy bank (41%) but say many ers make? Just 19% of respondents practical financial lessons weren’t dis- say they’ve asked. But the workplace cussed - like the importance of having isn’t the only area Americans are stayan emergency fund (31%), building ing quiet. People haven’t asked their good credit (30%), and managing debt friends (68%) or family (60%) either. (27%) - as kids or adults. This might Women are less comfortable talking explain why Americans tend to clam about money with co-workers than up when the conversation turns to men (36% women versus 50% men). money. While many received an alThat said, people may not be as shy lowance (36%), the majority (68%) were never taught how to manage a as expected: 58% of millennials and budget. Nearly a quarter of Gen Zers 53% of Gen Z (and 34% of Americans (23%) grew up in a household with a overall), would share their salary inforswear jar teaching about money and mation on their LinkedIn. manners - yet 79% of all people say What’s it amount to? According they never spoke about how much is to 62% of respondents, open money “needed” to be financially secure. conversations could solve the gender One in 5 (18%) Americans surveyed wage gap. Americans say greater wage say they were raised with a YOLO transparency would motivate employ-
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Tax Planning & Preparation Individual Estate and Trust Sole Proprietorship LLC and Corporations Charles R. Gebeck, Enrolled Agent GEBECK & ASSOCIATES, INC. 15 W. Warren Street, Suite 1 • Princeton, IL 61356 SM-PR2135086
(BPT) - America, it’s time to have the money talk. According to research by Empower, a financial services company, 62% of people don’t talk about money. Mum’s the word with their family (63%), friends (75%) and even with their spouse/partner (46%), though millennials and Gen Z are twice as likely to say they’re an “open book” compared to older generations (28% versus 13%). Many people would rather discuss politics (43%) and death (32%) than their finances (24%).
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