Americans have heard quite a bit about inflation lately and probably noticed how the price of goods and services have risen. This is commonly referred to as inflation, but it is a little like putting the cart before the horse. In fact, the rising cost of goods and services are merely the symptoms of a debasement in the reserve currency. In other words, inflation is a word used to describe the symptoms of a weakening of the dollar relative to assets and goods and services. Understanding its implication requires an examination of inflation within the context of the modern economic era.
High Earners and Health Savings Accounts
High earners are often looking for ways to strategically save on taxes while boosting their financial outlook. Health savings accounts (HSAs) are a great option for accomplishing this because they provide an uncommon three-point tax benefit: contributions reduce your taxable income, investments within the account grow tax-free, and, as long as you spend the funds on qualified medical expenses, the withdrawals are tax-free too. Additionally, HSAs have fewer restrictions and more benefits than flexible savings accounts (FSAs).
Teaching Your Preschooler About Money
Financial education may sound like a topic for adults, but it’s never too early to start teaching your preschooler about money and how to manage it. Day-to-day activities can easily be transformed into age-appropriate lessons that can lay the foundation for a lifetime of important knowledge and sound decision making. Money influences almost every part of our lives, from the food we eat to how we spend our time in retirement; for better or worse, it’s central to our life experience.
When it comes to children, research shows that they understand what money can be used for by the age of five. By age seven, many of their money habits will already be established. With this in mind, it’s a good idea to start teaching your child about money around 3-5 years of age, when they’re attending preschool and learning to count.
A Financial Checklist for a Single Parent
Parenthood comes with a lot of responsibility and that weight is amplified if you’re among the 23% of single parent homes in the U.S. As a single parent, managing your finances and getting to a point where you feel comfortable are important as you take care of yourself and your family. Though your budget may be smaller than those in two-income households, there are many things you can do now and going forward to set yourself up for success and protect your family’s future.
When is the Right Time to Refinance?
Refinancing has been a hot topic in the headlines since interest rates were historically low (below 3%!) throughout early 2021. Though rates have slowly risen as the year has gone on, they are still low enough to tempt many into considering a refinance. In the right circumstances, refinancing can be beneficial; however, it requires an investment of time, money, and effort, so it’s important to fully consider the pros and cons before moving forward.
