As Hoosiers, we are reminded that April is Financial Literary Awareness Month, a time to take stock of our finances and make informed decisions about our money. With the ongoing economic impact of the pandemic still being felt, it is essential to prioritize our financial well-being. According to the Indiana United Way, many households are still recovering from the economic downturn, and it is crucial that we take proactive steps to manage our finances effectively. Creating a spending plan and identifying priorities are excellent first steps in taking control of our financial lives. As Todd Christensen, education manager for the nonprofit Money Fit Financial, advises, “Whatever it is that motivates you, set a purpose. Number one. Number two is not to start adding income. That’s usually where people start, but you’ve got to prioritize expenses. If you don’t prioritize them, you will inevitably have to start eliminating expenses anyway. And you’ll go with your emotions rather than with the rational part of your brain.”
Christensen emphasizes the importance of having a budget that goes beyond just dollars and cents. “Whatever it is that motivates you, set a purpose,” he reiterates. This purpose should be more than just a financial goal, but something that drives you to make smart financial decisions. One common mistake people make is misusing cash, credit cards, and “buy now, pay later” apps. These convenient tools can prompt human nature to kick in and encourage overspending. Christensen suggests having two checking accounts, one for automatic bill payment and another for fun purchases, and a savings account for long and short-term goals. By separating our finances in this way, we can make more informed decisions and avoid emotional spending. Another crucial aspect of financial literacy is teaching children good money management habits from a young age. As Christensen notes, “By age two, children have been in their parents’ arms going through a checkout stand enough times that they know that there’s an exchange going on. They’re learning that there’s something magical about that plastic card or about the phone that they tap.” By instilling good money management habits in children, we can set them up for long-term financial success. The Indiana Department of Education has mandated that all students in grades eight through 12 must have one semester of personal financial responsibility instruction, including lessons on debt management, savings, retirement, and investment accounts. This emphasis on financial literacy is a significant step towards equipping our young people with the skills they need to navigate the complex world of personal finance. For those who may not be eligible for Direct File, a free tax filing system offered by the Internal Revenue Service, there are still alternatives available. The Economic Security Project notes that Direct File is not yet available for freelancers, gig workers, people with complicated investments, or those who work across multiple states. However, users can still file an income-tax extension by April 15 using the Direct File system. Pennsylvania, Washington, and other states have already adopted the Direct File system, which allows taxpayers to file their income tax returns directly with the IRS. The system is user-friendly, with no hidden fees and available in English or Spanish. Users can check their eligibility and get more information online at the IRS website. Public hearings are ongoing for the proposed sale of Minnesota’s second-largest utility, Minnesota Power. The deal is drawing attention due to the private-equity firm’s involvement, with some critics worrying about rate increases and the impact on the environment. The Minnesota Public Utilities Commission is hosting public hearings on the matter, with feedback from the hearings factored into the commission’s decision, expected this fall. As we navigate the complexities of personal finance, it is essential to remember that there are resources available to help us make informed decisions. By taking proactive steps to manage our finances, teaching children good money management habits, and staying informed about the latest developments in personal finance, we can set ourselves up for long-term financial success. Financial literacy awareness month is a call to action, urging us to take control of our finances and make informed decisions about our money. By working together, we can build a brighter financial future for ourselves and our communities.
- Creating a spending plan and identifying priorities are excellent first steps in taking control of our financial lives.
- Having a budget that goes beyond just dollars and cents is crucial for making smart financial decisions.
- Teaching children good money management habits from a young age is essential for long-term financial success.
- The Direct File system is a convenient and user-friendly option for filing tax returns, with no hidden fees and available in English or Spanish.
- Public hearings are ongoing for the proposed sale of Minnesota’s second-largest utility, Minnesota Power, with feedback from the hearings factored into the commission’s decision, expected this fall.
- Financial literacy awareness month is a call to action, urging us to take control of our finances and make informed decisions about our money.
- Teaching children good money management habits from a young age is essential for long-term financial success.
- The Direct File system is a convenient and user-friendly option for filing tax returns, with no hidden fees and available in English or Spanish.
| State | Direct File Availability |
|---|---|
| Pennsylvania | Available |
| Washington | Available |
“By age two, children have been in their parents’ arms going through a checkout stand enough times that they know that there’s an exchange going on. They’re learning that there’s something magical about that plastic card or about the phone that they tap.” – Todd Christensen
Financial literacy awareness month is a time to take stock of our finances and make informed decisions about our money. By working together, we can build a brighter financial future for ourselves and our communities.
Key Takeaways
- Creating a spending plan and identifying priorities are essential for taking control of our financial lives.
- Teaching children good money management habits from a young age is crucial for long-term financial success.
- The Direct File system is a convenient and user-friendly option for filing tax returns, with no hidden fees and available in English or Spanish.
Resources
- The Indiana Department of Education offers financial literacy resources for students.
- The IRS offers free tax filing options, including the Direct File system.
- The Economic Security Project provides information on the Direct File system and its limitations.
Conclusion
Financial literacy awareness month is a call to action, urging us to take control of our finances and make informed decisions about our money.