The long-awaited details of President Biden’s student-loan forgiveness plan have been officially announced. In summary, based on last year’s tax return, the plan cancels up to $10,000 of federal student loan debt for individuals making less than $125,000 per year (or households making less than $250,000). Pell grant recipients can qualify for up to $20,000 in loan forgiveness. (See full details of the student-loan forgiveness plan here.)

You may qualify for $10,000-$20,000 in student loan forgiveness, but keep in mind that whatever you owe beyond that will need to be repaid. The pause on federal student loan payments is extended through December 2022, with payments starting again in January 2023.

You can check your eligibility through the Department of Education (DOE) and sign up to receive email updates, which will be critical moving forward. If the DOE already has your income information, you could be granted forgiveness automatically. If not, applications will go live in December – another reason to sign up for updates at the DOE website. 

Here are three essential action items to consider for repayment.

1. Prep for Repayment. Adjust your spending now so you are ready to start making payments in January. It’s hard to believe that it’s been several years since people have been required to make payments on their student loans. How much will your monthly payment be in January? Can you pay yourself that amount in a separate savings account in September, October, November and December? Practice going without that income for a few months. Consider that you now have four months to get used to not spending that money on your discretionary expenses. Start setting it aside now as you’ll soon be required to pay your student loan bill, due every month beginning January 2023. Not sure where to start with budgeting? Sign up for a free personal finance webinar.

2. Watch for Scams. Don’t give money or information to people promising student loan forgiveness. Red flags include: charging upfront fees, asking for personal information over the phone or through email, pressure to decide quickly, asking you to cut off communication with your loan servicer, claiming to be affiliated with your loan servicer or the DOE, etc. If you experience this, cancel your payments, contact your servicer, and submit a report to the Consumer Financial Protection Bureau. You can also report it to the DOE.

3. Take Advantage of Time. The extended payment pause does mean that borrowers have four more months of no interest accruing on their debt. Now is the best time to work on lowering the principal balance (also lowering future interest fees). Making extra payments is the simplest way to do that. Create a free account at the USU Extension-sponsored PowerPay.org website to see how additional payments can impact your debt repayment strategy. 

By: Amanda Christensen, Utah State University Extension professor and Accredited Financial Counselor, Amanda.Christensen@usu.edu

Inflation has increased 8.6% since May 2021, according to data released this month from the U.S. Bureau of Labor Statistics. An average family of four is spending about $700 more per month on the same things they purchased a year ago. Inflation is most noticeable at the gas pump and grocery store. While price increases affect each family differently, most consumers are feeling the pinch and changing the way they spend to accommodate surging costs.

One way to tackle increased food and gas prices is to take advantage of grocery shopping apps and fuel rewards programs. Consider these tips.

1. Stay within budget. Download grocery store apps on your smartphone to plan shopping trips or place a pick-up or delivery order. The apps can help monitor grocery bill totals and help you stick to your spending limit. In addition, they can help you avoid adding more than you need to your grocery cart since you don’t see the enticing items on aisles or end caps. These items are usually the culprits for pushing shoppers over their spending limit.

2. Use all coupons for stackable savings. Many grocery store apps include in-app coupons or specials where coupons are loaded onto your account, saving you money on often-purchased items. These savings are in addition to manufacturer deals and promotions. The key is adding these coupons or savings to your account before checking out. Shoppers can often use digital and traditional paper coupons, so remember to use both if they are available.

3. Earn points for gift cards and other perks. Some shopping apps provide opportunities to accrue points that can be cashed in for gift cards to grocery stores, restaurants, or even PayPal. Apps such as Ibotta, Shopkick, and Fetch help shoppers earn points by adding coupons or promotions before shopping. Many can be used in addition to paper or digital coupons from grocery store apps. These apps allow shoppers to use their phone camera to scan items while in a store looking for promotions or bonus points and can also provide paper receipts after a shopping trip. Over time, shoppers can redeem these points for gift cards or PayPal credit, helping offset spending in other budget categories. An average user could earn $10-$20 a month or more, and frequent users could earn up to $100 per month. 

4. Use the app consistently. Grocery and shopping apps work best when used consistently. Choose an easy-to-navigate app you can remember to use. Also, choose one that will transfer points to gift cards or credits that align with your spending habits.

5. Join a fuel rewards program. Fuel rewards programs connected to grocery or warehouse stores provide one of the best ways to reduce spending at the pump, aside from carpooling or reduced driving. Join a fuel rewards program for a gas station that is convenient for you. When comparing fuel rewards debit or credit cards, be sure to read the terms of use carefully and pay off the card in full each month.

By: Melanie Jewkes, Utah State University Extension professor, Melanie.Jewkes@usu.edu

If you are wondering how to determine appropriate amounts to budget for food, gas, bills, and savings, use the following steps to guide you.

Track all your expenditures for one month. 

1. Keep a record of all the money you spend, whether you spend with cash, credit/debit card, or checks (they still exist). As you track your expenses, you will notice two types of expenses: fixed and variable.  Examples of fixed expenses include mortgage/rent, car payment, and insurance payment.   Examples of variable expenses include groceries, eating out, and fuel.
2. Create a list or visual. Using the information gained by tracking your income and expenditures, create a computer spread-sheet or notebook/notepaper with the following categories across the top: Description (this is to list what each income or expense is), Type (fixed or variable), Income, Expense, and Balance.  The lines down the page or spreadsheet will be where you will individually list your incoming and outgoing funds (income and expenses).

Build your budget.

3. Now that you know how much you spend each month it is easier to determine how much to budget for each item, such as food, gas, vacation, etc. If you find that your expenses are greater than your income, don’t despair. Tracking your expenses and building a budget will help you identify where you can cut back.

Knowing what you spend and how you spend will not only help you determine the appropriate amount you should budget for each expense but also help you save for long-term goals, such as buying a car or house.

By: Catherine Hansen, USU Extension Assistant Professor

June 7th, 2022

The average American throws away nearly 275 pounds of food each year. The USDA estimates between 30 to 40 percent of America’s food supply is wasted. Not only is good food wasted, but good money, too, equating to about $390 per year per person. While no one should eat unsafe food, consider these strategies to minimize food waste – and put the saved money toward a financial goal.

1. Use fresh foods first. Most fresh and perishable foods that have to be thrown away are simply forgotten. Shop with a list and a plan ways to use the food you purchase. It can be easy to over-purchase when there are sale items, or when many fruits and vegetables are in season, so be realistic about how much those in your household will eat. Place fresh items at the front of the fridge so you see them when you open the door. Make a list of your fresh foods and attach it in a prominent place on the fridge. If you find yourself throwing away fresh produce often because it spoils too quickly, purchase reusable containers or bags that ventilate the air and keep water from sitting on the produce.

2. Store fresh foods properly. Apples can cause nearby produce to ripen or decay more quickly, due to a harmless ethylene they contain that causes food to ripen. To prevent this, keep apples in a produce bag or store them alone in a drawer in the fridge. Onions, potatoes and tomatoes last longer when NOT refrigerated. For storage tips, visit www.fruitsandveggiesmorematters.org.

3. Understand food expiration dates. These dates are not created equal, are not required by federal regulations (except infant formula) and do not necessarily mean food is unsafe or expired.

a. The “sell by” date simply tells the store how long to display the product. Consumers should eat or freeze within 3-5 days of the date printed on fresh meat packages.

b. The “use by” dates refer to peak quality, but are not safety dates (again, except infant formula). They are found most often on fresh and chilled foods such as bagged salads.

c. “Best if used by/before” dates indicate when food will have the best quality or
flavor. Even if the date has passed, the food should be safe if stored and handled properly. Moisture, time and temperatures affect how quickly food spoils.

4. Use safe methods for preserving foods. Freezing is the quickest way, and most foods freeze nicely. Dehydrating, canning and freeze-drying are other options. Don’t preserve food that is starting to spoil, as this will affect the quality of the final preserved product. Be sure to follow safe USDA-approved food preservation and storage recommendations. Check out USU Extension’s website at canning.usu.edu, or contact your local county Extension office for further information.

By: Melanie Jewkes, Utah State University Extension associate professor,  Melanie.jewkes@usu.edu

Paying rent each month isn’t just for college students or young families not yet settled in a career. Overall, home ownership in the U.S. has declined for the past 10 years since peaking in 2009. At the end of 2020, the rate hovered around 65%.  (https://www.census.gov/housing/hvs/files/currenthvspress.pdf) If you plan to rent in the future, consider these points:  

Advantages of renting:

• Affordability – Monthly rent can cost nearly 1/3 less than the amount of a house payment.
• Down payment/deposit – While some landlords require a deposit equal to first and last month’s rent up front, most contracts allow for a sizable refund at the end of the lease for reliable, responsible renters.
• Flexibility to relocate – With an uncertain job market or perhaps more schooling in your future, living under a short-term contract allows more mobility.
• Few maintenance expectations – Yardwork, main appliances, carpets, pipes, etc., are often repaired or replaced by the landlord.

Disadvantages of renting:

• Security – How protected are your belongings inside your apartment? Are you in a safe neighborhood? How is the lighting and protection for your vehicles? Are windows and doors secure with sturdy locks? Check these out before you sign.
• Personalizing or customizing – You may be limited in what you can hang on walls, paint and carpet color and possibly window coverings.
• Space and noise – Apartments and many condos are not known for having large living spaces or being sound-proof.   

The majority of Americans still lean toward owning their own home. However, because this type of ownership is likely to be a long-term commitment, it is useful to review the advantages and disadvantages of this option as well.

Advantages of buying:

• Freedom to individualize – When you own your space, you get to choose paint colors, carpet and appliances and determine how you decorate.
• Pride in ownership – If owning your own home has been your goal, this will feel like a major accomplishment. 
• Sense of community – You now belong to a neighborhood and can build relationships and a sense of belonging.
• Ability to design and groom your yard and garden – You can reap the calming benefits and satisfaction many people find as they spend time outside working in nature and growing their own flowers and produce.

Disadvantages of buying:

• Down payment – One of the major obstacles for potential homeowners is qualifying for a long-term loan. You will likely need a minimum of 3.5 to 10% of the total loan amount  as a down payment. When the down payment is less than 20%, the lender will likely require mortgage insurance, and the interest rate will be adjustable.
• Mortgage payments – The thought of living on a reduced income due to monthly mortgage payments, for not just months but for decades, may seem overwhelming! Homeownership is a major financial commitment.

• Insurance and property taxes – You will now need to purchase home-owner’s insurance to protect your investment and also pay property taxes. These can be included in your mortgage payment (through an escrow service), but the trade-off is less money in your savings account earning interest.
• Municipal/utility fees – Moving from a single-rental payment that includes utilities will come to an end with home ownership. You will now begin paying monthly city/municipal fees such as water, electricity, sewer, etc.
• Upkeep and maintenance – The yard and maintenance costs covered by a landlord when renting are now your responsibility. Experts recommend you plan on spending 1% of your home’s value per year to cover maintenance. 
• HOA fees – It is possible that you may move into or build a home that is part of a home owners association (HOA). These fees may include hiring someone to take care of the grounds. There may also be fines if the yard isn’t maintained, sidewalks aren’t cleared or other HOA regulations aren’t met.

Approach home ownership with your eyes wide open. Consider enrolling in an online or face-to-face first-time home-owner education course. It will likely save you unexpected financial surprises during the process. If renting is the best option for your current situation, study that as well. 

            USU Extension offers an online home buyer education course for $60. For information, visit https://extension.usu.edu/hbe/.

            Other sources of information for renting vs. buying include:

https://www.fcs.uga.edu/extension/buy-rent

https://extension.missouri.edu/publications/gh5002.

By: Kathy Riggs, Utah State University Extension professor, kathleen.riggs@usu.edu,

435-586-8132

America Saves Week has been an annual event since 2007. It is held the last week of February and focuses on helping people save money. Most people would like to put more money in savings, but it can be daunting to get started. The Americasaves.org website is a great place to start. You can set savings goals and sign up for email and text reminders to help keep you on track. Consider these savings tips.

Save Automatically – This is the secret sauce to financial success. Automatically having your money direct deposited from your paycheck into a savings account increases your chances of saving by 100%. And if the money is out of sight and out of mind, you are less likely to withdraw it for random purchases. The book, The Automatic Millionaire by David Bach, is a good read for anyone who wants to become a regular saver. If you don’t have automatic savings set up, doing this is a great first step.

Save for the Unexpected – Have an emergency fund. Emergencies can be large, potentially devastating and very stressful. Some prefer the term, “save for the unexpected” over “save for an emergency,” because if you have money set aside for the unexpected, it feels like less of an emergency and more like something that needs to be taken care of. And luckily you have the money to fix the problem. Take the automatic savings you just set up, and squirrel some away for the unexpected.

Save to Retire – We spend most of our lives working in order to pay other people for our house, food, cars, entertainment, etc. Putting yourself first and saving money for your future is a wise move. One way to do this is to set up your retirement contribution so it is a certain percentage of your income. That way, as your income increases, so does the amount you contribute to retirement, all without you even noticing. 

Save by Reducing Debt – If automating savings is the secret sauce for financial success, reducing your debt is definitely the cherry on the top. Paying down debt frees up money that was going toward interest. When you pay interest, you benefit nothing from that transaction. The money you were using to pay off the principle and interest of your debt can now be put into savings. Most people would much rather be saving money for a family vacation than paying off credit card debt. 
​
Save as a Family – Finally, make it a family affair. Talking to your kids about money and empowering them to make good financial decisions is not something you will ever regret. No parent has ever said, “I taught my child to save too much money!” Setting a goal as a family to save for something fun that you all want to do together can create a lasting impact on your children. Even if you don’t have children and it is just you and a significant other, setting goals together can help you achieve financial success, have fun together and give you built-in accountability to reach your goals. 

Many retailers are promoting month-long Black Friday deals and will continue to flood us with advertising until Christmas. But before jumping the gun and diving in blindly to holiday spending, consider these tips to help you be a savvy shopper this season. 

Tip 1: Start early to help spread out the holiday costs rather than having everything hit your bank account in December or January. This also helps with giving thoughtful gifts, which is usually our intent, but sometimes we run out of time and pull the trigger on something less meaningful or more expensive than we had planned. Start early so you have time to plan, then check things off your list and unplug from the holiday hubbub to enjoy the rest of the season.

Tip 2:Create a holiday spending plan. Don’t forget to include such things as work gift exchanges, neighbor gifts or traditional activities that may have costs associated with them. Once you’ve listed everything, set a per-person (or per-activity) spending limit. Free apps such as Santa’s Bag and others can help track per-person spending and visually show your progress. A per-person spending limit can help focus on getting the best bang for your buck within the spending limit.

Tip 3: Keep good records so that if an item you’ve purchased goes on sale at a better price later in the season, you can return it or ask for the difference in store credit. Physical receipts can be kept in a coupon/gift card organizer. Digital receipts can be difficult to track, as they can get buried in your email, but you can create a “Christmas 2020” email folder and drag all online order confirmations into that folder.

Tip 4:A savvy consumer takes advantage of the sales and knows when to stop spending. The “good deals” will keep coming through November and December, so once you’ve reached your per-person spending limit and checked everything off your list, be done. Unplug. Last-minute impulse buys can be big budget busters. The sale season will only work for you if you use self-control and quit buying.

For more financial tips, visit utahmoneymoms.com. To sign up for the PowerPay Money Mastery online course, visit powerpay.org.

By: Amanda Christensen, Utah State University Extension associate professor
and Accredited Financial Counselor, Amanda.christensen@usu.edu, (801) 829-3472

By: Amanda Christensen, USU Extension associate professor, Amanda.christensen@usu.edu

The Consumer Financial Protection Bureau, combined with a review of research and consultation with leading experts, found that financial well-being includes the following four elements:

1. Having control over day-to-day, month-to-month finances.
2. Having the capacity to absorb a financial shock.
3. Being on track to meet your financial goals.
4. Having the financial freedom to make the choices that allow you to enjoy life.

Another way to think about it is that financial well-being is the feeling of having financial security and financial freedom of choice, both in the present and when considering the future.

So – what does financial health look like at each age? Timing will vary from person to person, but below are suggested financial milestones to achieve at each decade of life. This is not an all-inclusive list, but provides a foundation of things to consider. Milestones achieved at earlier ages, such as a good credit score and an adequate emergency fund, should continue into the following years.

• Age 10: Learn to add and subtract, sell a service or good for money (i.e. lemonade, car washing, cookies, babysitting, cleaning, etc.). Save up for something you really want, use money to buy a gift for someone or donate to a charity.
• Age 10-20: Work at a job for money, have checking/savings accounts, establish a Roth IRA, decide the type of lifestyle you’d like to live, what salary you’ll need for that lifestyle, and what career/job you’ll need to support that. Build credit with a credit card that has a low borrowing limit and use it regularly, but pay it off monthly.
• Age 20: Learn to invest, budget, track income and expenses, regularly contribute to a Roth IRA and build credit. Make on-time debt payments, stay below 30% of your allotted credit amount on credit cards, save for emergencies, have $1,000 in anemergency fund, save for 3 months’ worth of expenses in a separate savings account and obtain adequate insurance.
• Age 30: Achieve financial independence from parents, including independent living arrangements and no “subsidies” to pay expenses such as insurance premiums and cell phone bills. Have student loan debt completely repaid or close to repayment, have a year’s worth of salary (1x) saved for retirement, and establish a good credit history with a credit score in the mid-700s or higher. Become a regular at saving/investing, have at least 3 months’ worth of income set aside for emergencies, have educational credentials such as certifications and graduate/professional degrees earned or near completion, and have current estate planning documents and life insurance to protect dependents or co-signers, if applicable.
• Age 40: Have three times annual salary (3x) saved for retirement, saving at least 15% of gross income, establish a college savings for children, if applicable, and increase investing expertise and diversification of investment portfolio assets. Increase human capital, including job skills and knowledge to remain employable and earn promotions/raises.
• Age 50: Have six times annual salary (6x) saved for retirement; make catch-up retirement savings plan contributions, increase knowledge about the specifics of Social Security, Medicare and employer retirement benefits, increase knowledge of aging parents’ finances and communication about caregiving-related issues. Use financial advisers, as needed, as net worth increases and finances become more complex.
• Age 60: Have eight times annual salary (8x) saved for retirement, have mortgage paid off, home equity loan, and credit card debt paid off prior to retirement. Use catch-up retirement strategies, if needed, such as downsizing, moving, working longer and selling assets, learning new skills and/or making other preparations to transition to a “second act” job or volunteer role.

Questions to ask yourself: Am I on track with the suggested financial milestones at each decade? What would it take to get on track with my current decade? For more information about financial milestones by decades, visit https://www.reuters.com/article/us-column-stern-advice-idUSBRE97R0VV20130828. For more real-life money smarts, visit www.utahmoneymoms.com. Join the conversation on Facebook and Instagram @utahmoneymoms.

Did you know that the average American throws away hundreds of pounds of food every year? That’s a lot of wasted food and a lot of wasted money! These helpful tips from Melanie Jewkes, USU Extension associate professor, will help you cut back on food waste. 

The average American throws away nearly 275 pounds of food each year. The USDA estimates between 30 to 40 percent of America’s food supply is wasted. Not only is good food wasted, but good money, too, equating to about $390 per year per person. While no one should eat unsafe food, consider these strategies to minimize food waste—and put the saved money toward a financial goal.

1. Use fresh foods first. Most fresh and perishable foods that have to be thrown away are simply forgotten. Shop with a list and a plan how you will use the food you purchase. It can be easy to over-purchase when there are sale items, or when many fruits and vegetables are in season, so be realistic about how much your household will eat. Place fresh items at the front of the fridge so you see them when you open the door. Make a list of your fresh foods and place it in a prominent place on the fridge. If you find yourself throwing away fresh produce often because it spoils too quickly, purchase reusable containers or bags that ventilate the air and keep water from sitting on the produce.

2. Store fresh foods properly. Apples can cause nearby produce to ripen or decay more quickly, due to a harmless ethylene they contain that causes food to ripen. To prevent this, keep apples in a produce bag or store them alone in a drawer in the fridge. Onions, potatoes and tomatoes last longer when NOT refrigerated. For storage tips, visit www.fruitsandveggiesmorematters.org.

3. Understand food “expiration” dates. These dates are not created equal, are not required by federal regulations (except infant formula) and do not necessarily mean food is unsafe or expired. Save money and minimize food waste by knowing the difference.

a. The “sell by” date simply tells the store how long to display the product. Consumers should eat or freeze within 3-5 days of the date printed on fresh meat packages.

b. The “use by” dates refer to peak quality, but are not safety dates (except infant formula). They are found most often on fresh and chilled foods like bagged salads.

c. “Best if used by/before” dates indicate when food will have the best quality or
flavor. Even if the “best if used by” date has passed, it should be safe if stored and handled properly. Moisture, time and temperatures affect how quickly food spoils.

4. Use safe methods for preserving foods. Freezing is the quickest way, and most foods freeze nicely. Dehydrating, canning and freeze-drying are other options. Don’t preserve food that is going rotten, as this will affect the quality of the final preserved product. Be sure to follow safe USDA-approved food preservation and storage recommendations. Check out USU Extension’s website extension.usu.edu/canning or contact your local county Extension office for further information.

This article was contributed by Melanie Jewkes, USU Extension associate professor.
 Melanie.jewkes@usu.edu

Have you filed your taxes yet this year? There’s a reason so many people opt to hire someone else to do their taxes for them— it can be a daunting task! Doing them yourself is a good way to save a little money. Read on to learn about free programs to help you get them done.

Now that you have received your W-2 s, are you getting ready to prepare your taxes?

Before you pay a tax preparer, pay for a tax anticipation loan or buy a commercial tax preparation program, look into these two free opportunities for completing your taxes. There is a free service available to Utah citizens through the VITA program if your income is $54,000 or less.  You can go to utahtaxhelp.org. Click on Find a VITA site to find out if there is a free site in your area where trained volunteers can assist you in preparing your tax return and you can apply for earned income tax credits, if you are eligible. You can also call 211 and they can help you find a location in the Salt Lake City area and make an appointment. If you need to file back taxes, you can also check to see if they can assist you with that process.

If your income is $66,000 or less, you can file online for free. This online service is also available at utahtaxhlp.org. Click on File online for free now. You can also access the program by going to myfreetaxes.com. Don’t be alarmed that the information indicates it is brought to you by H&R Block and United Way; it is still free.   

Just think, by doing your taxes for free, any tax return you receive can be used for creating that emergency fund, paying off some bills, starting a college savings plan for your kids or planning  for a vacation. Happy saving in 2018!

This article was written by Marilyn Albertson, Utah State University Extension Family and Consumer Sciences Associate Professor, Salt Lake County