Tag Archives: money management

Sep 27 2025

SHOULD YOU REFRESH YOUR BUDGET?

Whether you have been budgeting for a month, a year, or longer, a regular review of your spending plan is vital.  Several situations may indicate a need for a revised budget; these include:

  • Worrying about money emergencies. Be sure your budget includes savings to create an emergency fund for unexpected expenses.
  • Using the same budget each month. Spending needs are likely to change from month to month, as a result slight changes might be necessary.
  • Not tracking expenses. A record of your actual spending is vital for budgeting success. 
  • Overspending in a budget category. Be sure your plan is realistic and helps you avoid unneeded spending.
  • Avoiding a “sharing” category. The SPEND, SAVE, SHARE framework is a recommended approach. Giving to church, charities, and worthy causes contributes to living a fulfilled life and contentment.
  • A major change in income. A raise should not result in lifestyle inflation in which you significantly expand your spending. Or, a loss of job can result in an extensive budget adjustment along with use of emergency funds. Your emphasis will likely be on spending for food, utilities, shelter and transportation.
  • Not considering inflation. Most people have been affected by rising costs of many items requiring an adjustment in budgeted amounts.
  • Overlooking annual and seasonal expenses. Planning for holidays, vacations, back-to-school expenses, and semiannual auto insurance requires setting aside an amount each month for those items. Not doing so may result in increased debt or using your emergency fund for something that is not an emergency.
  • Planning for funds from paid off debt. As you pay off credit cards and loans, those monthly payments can now be used to expand your emergency fund and other savings goals.
  • Not coordinating budget items with savings goals. If your spending and saving activities are not helping you achieve your financial goals, a revised budget may be needed.

For additional information on refreshing your budget, click here.

Teaching Suggestions

  • Have students talk to others to learn actions used for successful budgeting.
  • Have students research budgeting apps that could help them better plan their money management activities.

Discussion Questions 

  1. What features of an app might be helpful for successful budgeting activities?
  2. Describe actions that might be taken when a person needs to revise their budget.   
May 17 2025

MAKING ENDS MEET

A study conducted by the Consumer Financial Protection Bureau (CFPB) reported that overall financial stability and well-being worsened from 2023 to 2024. The findings of the surveys included:

  • Fewer households can cover a month of expenses if they lose their main source of income. If the main source of income were lost, 42 percent of households could cover expenses for a month or less; 22 percent would be able to cover expenses for less than two weeks.
  • More households had difficulty paying bills or expenses. The share of families with these difficulties increased from 38 percent in 2023 to 43 percent in 2024.  38 percent of non-Hispanic white consumers in the study had difficulty paying bills or expenses, 63 percent of Black consumers in the study had difficulty, and 51 percent of Hispanic consumers in the study had difficulty.  
  • Financial well-being measured using the CFPB’s Financial Well-Being Scale declined.  Overall financial well-being fell to 48.7 in 2024 from 51.0 in 2023. The number of consumers with low or very low financial well-being increased from 16 to 22 percent.
  • Access to credit was also difficult for some. In 2024, 40 percent of consumers in the study applied for credit. Of those who applied, 39 percent were either denied credit or approved for a lower amount than requested. In addition, 27 percent decided not to apply because they expected to be turned down.
  • The use of credit card debt fell slightly. In 2024, 80 percent of consumers in the study had a credit card. Of those consumers, the share with revolving credit card debt decreased slightly from 53 percent in 2023 to 49 percent in 2024. Meanwhile, 23 percent of consumers with a credit card reported paying a late fee, unchanged since 2023.
  • Many respondents use multiple credit sources. About half of those in the study used a payday or pawn loan in the past year and had a credit card. About four-fifths of survey respondents had an auto title loan, buy-now-pay-later loan, or experienced an overdraft, and had a credit card.

The financial deterioration reported in this study was not the result of one specific cause. Factors that may have contributed to the situation include inflation, housing costs, high interest rates, and student loan payment resumption.

For additional information on making ends meet, see the following links.

Making Ends Meet Insights
Making Ends Meet Report
Well Being Scale

Teaching Suggestions

  • Have students interview another person about the actions taken to avoid financial difficulties.
  • Have students access the full research study to obtain additional findings and to suggest actions that might address the financial difficulties.

Discussion Questions 

  1. How might a person make use of family members, friends, and community resources when encountering financial difficulties?
  2. Describe actions a person might take to avoid the financial difficulties reported in this study.
Feb 15 2025

Plan ahead for the New Year

For many, December means spending lots of money on presents, food, travel, and other things to get you through the end of the year. And after we stretch our wallets, January’s often for taking stock and planning for the year to come.

If that’s true for you, here are some things to hopefully save you time as you transition from holiday festivities to financial goals in the New Year.

Are you:

Looking for more? The FTC’s consumer.gov site has tools to help you in the New Year and beyond. Get the basics on these and other topics like avoiding scams and identity theft at consumer.gov in English, Spanish, Chinese (Simplified), Korean, and Vietnamese. You’ll also find videos and free, one-page handouts to share in your community. 

For more information, click here.

Teaching Suggestions:

  • Ask students to get their free credit reports from Equifax, Experian, and TransUnion, and sign up for free credit monitoring with Credit Sesame or Credit Karma.
  • Ask students to list the main steps in creating a budget.  What are commonly recommended qualities of a successful budget?

Discussion Questions:

  1.  Why is it important to check your credit reports regularly?
  2.  What are the most frequent reasons for indebtedness?
  3.  What are common danger signals of potential debt problems?
Mar 30 2024

AVOIDING FINANCIAL ABUSE

According to the Center for Financial Security, nearly every domestic violence Bottom of Formsurvivor also experienced financial abuse. Also referred to as financial exploitation, this domestic mistreatment can result in victims losing access to their financial resources along with having their credit ruined.

A financially abusive relationship may be characterized by:

  • the abuser refusing to share financial information and taking control of the family finances.
  • the abuser uses an intimidation tactic of quickly getting angry when asked about family finances or major purchases.
  • the abuser puts the victim on a very low allowance, which may not even be enough to cover basic needs.
  • the abuser discourages the victim to have a job or harasses the victim at work, which can result in losing their job.
  • the abuser makes late payments or no payments to ruin the victim’s credit. 
  • the abuser forces a power-of-attorney agreement to legally steal money or property from the victim.

Financial abusers attempt to control the relationship by making victims feel powerless and unable to support themselves and their children. To avoid or escape financial abuse while building self-esteem and dignity, take the following actions:

  • Obtain increased financial knowledge, which can allow a person to escape the abusive relationship.
  • Monitor your credit report to determine your current situation and to plan actions to repair your credit.
  • Find a safe place to stay with family, friends, or a shelter to connect to a support network.
  • Clear your browser history, which would not allow the abuser to view your search activity when seeking help.

Financial abuse can occur in marriage and other relationships. Family members and caregivers may steal or misuse the funds of aging relatives.

For additional information on financial abuse, click here.

Teaching Suggestions

  • Have students talk to others to learn about difficult financial relationships they may have encountered.
  • Have students create a visual proposal (poster or slide presentation) with suggestions to avoid becoming a victim of financial abuse.

Discussion Questions 

  1. How might a person become better aware of the signs of a financially abusive situation?
  2. Describe actions you would recommend to a person who faces a difficult financial situation.    
Nov 25 2023

FINANCIAL SUCCESS FOR CHILDREN   

Money troubles often start as bad habits when young. Since only about half of the U.S. states offer financial literacy education, guidance from parents is vital. To avoid a life of money difficulties, consider these strategies to develop financial competency among young people:

  • Connect money lessons with daily activities. Talk to children about money decisions when shopping and paying bills. Provide hands-on learning activities, such as making a shopping list or creating a family budget. Be a good financial role model by planning ahead, practicing self-control, disciplined spending, and ongoing learning. When shopping, talk about needs and wants, have children pay for low-cost items, and discuss package sizes and brands.
  • Make use of money jars. At every age, three jars labeled SAVE, SPEND, and SHARE can provide a hands-on and fun experience for learning wise money management. Allowances, money gifts, and pay from a job can be divided among the jars.  If some money is kept in a bank account, instead of in the jars, slips of paper with amounts can be put in the jars as tangible proof of available funds for each category.
  • Encourage entrepreneurial activities to earn money. Starting a business or working part-time can teach creative thinking, problem solving, resiliency, and curiosity.
  • Start a savings account. Connect children early to saving for wise money management and to practice delayed gratification. Start with a basic savings account. As they get older, teach them about other savings plans (money market account, certificate of deposit) and other banking services. Connect savings to various goals. Research indicates that young people with a savings account are three times more likely to attend college, and four times more likely to graduate.  

Children with a strong financial foundation will be on a path to avoiding future money stress and obtaining long-term security.

For additional information on the financial success of children, click here.

Teaching Suggestions

  • Have students talk to others to learn about actions people have taken to teach children about wise money management and smart shopping.
  • Have students demonstrate (role play) how to teach wise money management or smart shopping to a young person.

Discussion Questions 

  1. What did you learn about wise money management and smart shopping when you were young?
  2. What actions might be taken with children to help them learn wise money management and smart shopping?  
Aug 5 2023

RICH VS. POOR MONEY HABITS

Successful money management can result from simple actions.  A major difference between the rich and the poor is their habits and attitudes toward money. Increased financial literacy and changed behaviors can result in increased prosperity. A transformed financial future can result from these actions:

  • Believe you can control many aspects of your life rather than viewing yourself as a victim of circumstances.
  • Create goals to clearly maintain your focus and an action plan to build wealth.
  • Focus on opportunities looking for new ways to create value and grow wealth rather than being preoccupied with problems and barriers.
  • Avoid jealousy; learn from those who have already achieved wealth.
  • Emphasize cash-flow assets; acquire investments that generate income to build lasting wealth.
  • Commit to an increasing net worth and a positive cash flow.
  • Continue to learn since knowledge is power; seek to expand an understanding of finances, investments, and business.

In addition, people who are successful in managing their finances avoid spending money on these things:

  • bank fees
  • credit card interest
  • lottery tickets and other gambling
  • late fees
  • extended warranties
  • designer label clothing
  • impulse purchases
  • video games, televisions 
  • prepaid cash cards with various fees

For additional information on the money habits of rich and poor people, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students interview a family member or another person to determine recommended actions for successful money management.
  • Have students create a visual proposal (poster, slide presentation, or video) with actions a person might take for reduced spending and for an improved financial situation.

Discussion Questions 

  1. Which attitude or behavior discussed in the article do you believe could make a difference in the financial life of most people?
  2. Describe actions a person might take to change attitudes and behaviors that could result in an improved financial situation.
Jul 8 2023

CHAT GPT FOR MONEY MANAGEMENT

You may ask if artificial intelligence (AI), such as ChatGPT, can be beneficial to guide your money management activities and financial decisions. AI is assisting students and others with everything from identifying research topics and preparing reading summaries to creating recipes and translating foreign languages.

ChatGPT and similar platforms are designed to understand and respond to questions and creative inquiries. When asked a question or given a prompt, a reply is generated based on the previous learning of the AI program.

Using ChatGPT for personal finance can provide a person with easy-to-understand information as well as suggested money actions related to budgeting, saving, and investing.  However, beware not to depend completely on AI advice since:

  • responses may contain fictionalized information or a biased point of view.
  • results can produce grammatically correct text but with flawed logic or facts.
  • up-to-date tax information and current financial data may be lacking.
  • citations may not be correct and may include made-up sources.
  • calculations may lack accuracy due to limited math algorithms.

ChatGPT and similar AI programs can be useful in your personal financial planning with:

  1. Understanding basic financial concepts.  As a starting point, ask how to improve financial literacy and inquire about fundamental personal finance topics related to budgeting, debt, insurance, and investing.  If a response is too complex for your current level of understanding, ask for a simplified explanation. Or, if a response is too general, resubmit your inquiry with more specific parameters.
    Sample ChatGPT prompt: What advice from financial planners might be the basis of wise money management?

2. Tracking spending and budgeting. Controlling your finances and knowing where your money is going are the foundation of financial success. Creating a budget (spending plan) allows you to tell your money where it needs to go. ChatGPT can suggest appropriate budget categories and amounts as well as possible adjustments when needed. Other AI uses may include use of the 50/30/20 budget rule and guidelines for using the envelope method or budgeting apps.
Sample ChatGPT prompt: What budget categories and allocated amounts are recommended for a household of four people with an income of $67,000?

    One person’s experience with creating a budget using Chat GPT may be viewed at:  https://www.youtube.com/watch?v=hl6pOtaSMR4

    3. Monitoring and improving your credit score.  Your credit score can influence many aspects of your financial life. ChatGPT is available to suggest actions for improving a credit score. Also of value would be information on how to dispute errors in a credit report.
    Sample ChatGPT prompt: Propose a plan to pay off $6,400 of credit card debt.

    4. Achieving savings goals. Long-term financial success is dependent on saving money.  ChatGPT can recommend financial goals based on your life situation and finances. In addition, ask for an explanation of compound interest and how it applies to your savings plan.
    Sample ChatGPT prompt: Recommend a step-by-step action plan to create an emergency fund of $8,000 within the next two years.

    5. Investment advice and retirement planning.  The array of investment vehicles overwhelms most people. ChatGPT can explain stocks, bonds, exchange-traded funds, cryptocurrencies, derivatives, and others in simple terms.  For long-term investing, retirement planning options and estimated future living needs can be the basis for suggested savings amounts.
    Sample ChatGPT prompt: Propose a diversified investment portfolio for a 30-year-old person with plans to retire in 35 years.

    6. Preparing for filing your taxes. To overcome the intimidation associated with taxes, ChatGPT is available to remind you of deductions, tax credits, and needed documents for your financial situation. AI can also guide you with the best sources for filing your taxes. 
    Sample ChatGPT prompt: What is the difference between tax-deferred income and tax-exempt income?

    7. Wise spending and shopping suggestions. Guidance for buying can range from meal planning and shopping location to coupon sources and travel schedules. The suggestions offered can prevent overspending through carefully planned buying.
    Sample ChatGPT prompt: Create a one-week grocery shopping list of nutritious foods for three people with a weekly food budget of $160.

    For the Personal Finance classroom, consider using ChatGPT to:

    • Obtain creative in-class activities and field research projects.
    • Generate discussion prompts and questions.
    • Develop rubrics to evaluate assignments.
    • Create assessments and quizzes.
    • Implement state and national curriculum standards.
    • Construct trivia questions and classroom games.
    • Suggest ideas for skits or role-play scenarios.
    • Create personalized writing prompts based on student interests and abilities.
    • Use as a personal tutor to explain complex concepts or calculations

    Will AI create wiser consumers and more effective money managers?  Yes, but only if a person follows the advice offered after carefully considering the validity of the suggestions.

    For additional information on ChatGPT for money management, go to:

    Link #1

    Link #2

    Teaching Suggestions

    • Have students talk to others about how they might use ChatGPT and other AI platforms to increase their financial literacy.
    • Have students research alternatives to ChatGPT and obtain reviews to determine other AI platforms they might consider.

    Discussion Questions 

    1. What benefits and concerns are associated with ChatGPT and other AI platforms?
    2. Describe actions that might be taken to verify the responses received when using AI.
    Jan 21 2023

    PREPARING FOR A RECESSION

    If you stay ready…you don’t have to get ready!!  Whether or not a recession occurs, certain personal actions will be beneficial for your future.

    Job loss is the most common effect of a recession. This can occur due to a layoff, furlough, or company failure.  With many people all experiencing job loss, finding a new job is difficult. For those who keep their jobs, they may experience pay cuts, reduced benefits, and no pay raises. Another major concern is the decline in value of stocks, bonds, real estate, and other assets. 

    To be ready to cope if an economic downturn occurs, consider these financial strategies:

    • Monitor your monthly expenses. Know what it costs to live so there are no surprises. Be ready to pay items that occur only once a year.
    • Cut unnecessary spending. Look back at your spending to see what you could have done without. Add up what you could have avoided to make sure you spend less than you make. Possible areas to cut include cable TV, streaming services, gym membership, online music subscriptions, and a less expensive cellphone plan.
    • Start or expand your emergency fund.  No matter how small, be sure to set aside funds for poor economic times. To build your fund, have an amount automatically deposited in a saving account each month.   
    • Budget everything. Telling your money where it will go keeps you in control.    
    • Avoid debt. Just like saving, paying off debt can start small.
    • Be in contact with others to discuss possible late payments, reduced costs, cancel services, and other actions to cope financially.
    • Maintain retirement savings. Keep contributing to your retirement fund so it will be there when you need it. 

    For career planning during times of recession, consider the following actions:

    • Inventory your skills, especially those that relate to essential work for your current employers and other organizations. 
    • Expand your skills through online certifications, courses, and training programs. 
    • Be adaptable. Step up to take on tasks needed within your company. 
    • Network for freelance work. Connect with others in your industry for consulting opportunities.
    • Be prepared for the unexpected. Despite taking these actions, a layoff may still occur. If that happens, expand your skills, update your resume, and connect to others through LinkedIn and community service activities.

    For additional information on financial planning during a recession,

    Source #1

    Source #2

    Teaching Suggestions

    • Have students research current economic conditions to determine the status of employment and inflation.
    • Have students create a podcast to encourage others to act on the suggestions in the article.

    Discussion Questions 

    1. What are the benefits of these actions during every type of economic situation?
    2. Describe actions a person might take to better understand potential career opportunities.
    Nov 13 2022

    MONEY TIPS FOR YOUR FIRST JOB

    As young people get their first full-time job with a substantial paycheck, their money management activities need to be reconsidered, which include: 

    1. Automate your savings. For unexpected expenses and major purchases, set aside a specific percentage or amount of your income from every paycheck. These funds should be directed to one or more dedicated accounts.  

    2. Make use of different accounts. This money management strategy can help you plan for different savings goals and can prevent spending money planned for a specific purpose. Consider using a checking account to pay regular expenses, along with one or more savings accounts.

    3. Start retirement saving. Start with 3 to 5 percent of your gross income, increasing to 15 percent as soon as you get raises and bonuses. These funds may be in a company-sponsored 401(k) or a personal IRA or Roth IRA.

    4. Pay off debt. If you have college debt, create a plan to pay it off, especially credit card debt. Set a goal to become debt free in your 20s.

    5. Practice wise spending. Minimize your transportation, housing, and clothing expenses.

    For additional information on money tips for your first job, click here.

    Teaching Suggestions

    • Have students talk to others to obtain money management suggestions to implement when completing college and starting work.
    • Have students create a personal plan for improved money management.

    Discussion Questions 

    1. Why do people start taking on more debt when starting work?
    2. Describe money management actions you might take as you complete college.
    Aug 13 2022

    STUDENT MONEY SURVEY

    Limited knowledge of personal finance and weak financial literacy skills are some of the concerns expressed by college students in a survey conducted by WalletHub. Findings in this study included:

    • Nearly all (93 percent) of the students surveyed expressed concern about the economy.
    • After graduation, the two major worries of students are not finding a job (36 percent) and educational loan debt (30 percent).
    • One-fifth of students expressed a belief that a college education is less important since the COVID-19 pandemic.
    • About half (52 percent) of the students responding voiced a concern that they were not learning enough about personal finance in school.
    • As a result of the pandemic, the three major financial lessons learned were: (1) having emergency savings (44 percent); (2) not going into debt (23 percent); and (3) having a steady job (22 percent).

    Some suggestions to address these concerns include:

    • Financial anxiety can be reduced with simple personal finance actions: track your spending, cut back on unnecessary items, shop wisely, maintain a workable budget, pay off debts, and increase the amount in your emergency fund. Most importantly, emphasize the enjoyment of your connections and relationships with family and friends rather than on material items. 
    • Various career paths may not require a college degree; consider online courses, certification programs, trade schools, and other educational/training options.
    • Be creative in your savings efforts with: (1) saving $5 a day instead of $150 a month; (2) using “no buy” days to save money; (3) paying for your drinks (or snacks) at home by set­ting aside the “price” in savings; (4) visualizing a savings goal and budget categories with a photo or post-It notes as a reminder; (5) create, or locate online, a poster that displays savings and debt categories to track your progress; (6) placing your credit card in a bag or container of water and place it in the freezer to avoid impulse purchases, then defrost it under warm water when you need to pay for an emergency.
    • When applying and interviewing, clearly communicate the connection between your skills and experiences with the current and future needs of the job position and company. This requires strong research of the company and industry trends but will allow a person to better connect with their prospective employer. Also, be ready to talk about research projects, team experiences, and creative problem-solving.
    • Although an increased number of personal finance classes are becoming available in schools, also seek out financial literacy education through community-based workshops, church outreach programs, and neighborhood organizations.

    This research was the result of a nationally representative online survey of over 250 respondents. Responses were normalized so the sample would reflect U.S. demographics.

    For additional information on the student money survey, click here.

    Teaching Suggestions

    • Have students talk to others to determine if their opinions are similar to those presented in this article.
    • Have students create a role-playing drama that communicates actions to avoid various personal financial difficulties and career planning mistakes.

    Discussion Questions 

    1. Which of the survey results are similar to your current attitudes and experiences?
    2. What additional money and career topics not covered in this survey do you believe are of current concern for students and others?