June Money Management |
JUNE 2, 2008
NEW GRADS: START OUT ON THE RIGHT FINANCIAL FOOTING
Are you a new college graduate who’s ready to take on the world? Graduation is an exciting time, but it’s also a time when young people are faced with adult financial responsibilities. As you begin your new life, the Georgia Society of CPAs advises that it’s a good idea to start out on the right financial footing. For example, it may be tempting to run up a credit card balance, but be cautious in your spending. Many recent graduates already have thousands of dollars in student loan obligations. Adding to that debt makes it more difficult to pay off your balances and begin to save for your future.
If you do take on consumer or student loan debt, be sure to make your payments on time and in full. That will ensure that you maintain a good credit rating so that you can get credit in the future when you need it. If you have questions about using credit wisely—or about any of the financial issues you face—ask your local CPA. He or she has the expertise to help you get the right start.
JUNE 9, 2008
DO GOOD AND LOWER STUDENT LOAN DEBT
Are you or someone in your family facing heavy student loan debt? Recent graduates left college with an average of $19,646 in student loan obligations, according to one study. There is a great option for new grads who want to help others while helping themselves, according to the Georgia Society of CPAs. For example, you can lower some of your federal loan totals by teaching in a low-income area. A two-year term in the Peace Corps can also qualify you for a reduction in your loan balance. Many volunteers for AmeriCorps and VISTA postpone their loan payments while they are involved in the program and receive stipends that can be used to pay down their student loan debt. Health professionals who spend two years working with the National Health Service Corps serving communities that have a shortage of medical professionals can qualify for loan forgiveness of up to $25,000 a year. In addition, many law schools have loan forgiveness programs for newly minted attorneys who take jobs in public interest law. If you have a strong interest in making a difference, then that commitment can also help you relieve some of your student loan obligations. If you have interest in these problems or need advice on how to manage your debt or address other financial problems, be sure to consult your local CPA.
JUNE 16, 2008
WHEN ADULT CHILDREN RETURN TO THE NEST
It’s graduation time, and many college graduates are returning to live at home for the first time in several years. These days, because of an uncertain economy, many young adults have decided to spend a few years living with Mom and Dad until they have a stronger financial foundation. The Georgia Society of CPAs advises that it’s important to be aware of the financial challenges that parents will face in this situation. Families may have a lot of unspoken questions about how the new living arrangements will work, so it’s best to discuss everyone’s expectations in advance. For example, will the child be expected to pay rent? How much will he or she chip in for groceries and other expenses? If your child’s initial income is very low, consider charging them a token percentage of that income or asking them to take on certain household responsibilities, such as shopping or yard work. That’s a realistic way for your child to make a contribution despite their limited funds. Consider writing up an informal agreement that covers all of these details so there are no misunderstandings later. And if you have further questions about financial issues, be sure to consult your local CPA. He or she has the expertise to help you make the best decisions.
JUNE 23, 2008
FINANCIAL ADVICE FOR NEWLYWEDS
June is a popular time for weddings, and it’s especially important that newlyweds get off on sound financial footing, according to the Georgia Society of CPAs. One important step is to ensure that your financial paperwork is in order. If you are taking your spouse’s name, make sure the name change is made on your Social Security card, driver’s license and other identification, as well as on insurance policies and bank or retirement accounts. If you are planning to add your new spouse as the beneficiary for your insurance policies, 401(k) plan, individual retirement account, investment and savings account or any other assets, now is a great time to get that paperwork in order. In addition, this is a good time to update your homeowner’s or renter’s policy and your health and life insurance to reflect the changes in your life.
Have further questions about beginning your new life together? Your local CPA can help you understand all the financial issues you face.
JUNE 30, 2008
FINANCIAL ISSUES IN REMARRIAGE
Money can be a source of tension in any relationship, but it doesn’t have to become an issue when couples remarry. The Georgia Society of CPAs advises that there are steps that remarrying couples can take to preserve that newlywed bliss. The first step is to understand that you may have to change some of your spending, saving and planning habits in a new marriage. It’s a good idea to discuss your differences in managing money and develop a financial approach that will suit your new family. Decide how you will make decisions and how you will monitor your finances. This is also a good time to discuss your near- and long-term financial goals to be sure you are on the same page. And if you have questions about any of these issues, or other money concerns in your new marriage, be sure to consult your local CPA. CPAs have the financial expertise you need to help you get the right start in your new marriage.
For more information contact Calvin Wong at 404-231-8676, Opt. 5.