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Posts Tagged ‘Financial wellness’

Prioritize Spending Now: Fill Your Hope Chest

Posted in Healthy Finances, Uncategorized, tagged on June 11, 2022| Leave a Comment »

Take steps to explore your financial well-being

The OSU Extension Accounting for Your Money Hope Chest was released July 7, 2020, in the midst of the global pandemic and updated April 1, 2022 to address emergent global economic upheaval.  What is a Hope Chest? Historically, the term hope chest symbolized hope in a marriage or union…key words include vessel and a symbol of hope. The update contains current research to “help people help themselves” by aligning spending and saving within our control.

The past 26 months have taxed individuals and family’s financial wellness. It makes sense to explore the status of our financial well-being.  The Consumer Financial Protection Bureau developed a tool to gauge individuals financial well-being.  The research was led by a team from the Corporation for Enterprise Development (CFED).  The research team suggests financial well-being is defined as a state of being where you:

§ Have control over day-to-day, month-to-month finances
§ Have the capacity to absorb a financial shock
§ Are on track to meet your financial goals
§ Have the financial freedom to make the choices that allow you to enjoy life

Because individuals and family’s value different things, traditional economic measures such as income or net worth do not capture the emergent aspects of financial well-being today. We must dive deeper, as the quality of our lives is largely determined by the choices we make.  By becoming aware of how to make choices that are best for you and others, you can become what is known as a self-forming person.

Self-forming people are those who take responsibility for their own lives.  They craft their futures by the actions they take and the choices they make.  Self-formation is a lifelong process of maturing and developing thinking skills. It develops as you interact with others, deciding what is most important to you, and taking action that is best for yourself and others.

Now click on the Financial Well-Being questionnaire tool, answer the 10 questions, and tally your score. Then use the information you learned about yourself to assist you when you take the first steps to prioritize your spending separating your needs from your wants. Click here to begin.

Below is the link for the Accounting for Your Money Hope Chest tool to help you develop and move forward with your state of self-formation and financial wellness. 

Click image to access the complete Hope Chest

Written by Margaret Jenkins, Assistant Professor, Family and Consumer Sciences, OSU Extension Clermont County

Reviewed by Mackenzie Mahon, Extension Educator, 4-H/FCS, OSU Extension Clermont County

Sources: 

  • A Sorgente, M Lanz – International Journal of Behavioral …, 2019 – journals.sagepub.com.  The multidimensional subjective financial well-being scale for emerging adults: Development and validation studies
  • Consumer Financial Protection Bureau, (2022) Your Money Your Goals. at consumerfinance.gov/practitioner-resources/your-money-your-goals
  • J.F Laster – Journal of the Japan Association of Home Economics …, 2008 – jstage.jst.go.jp… Journal of the Japan Association of Hemc Economics Educution50(4) (2008.t Nurturing critical literacy through practical problem solving

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Reduce Stress: Fill Your Hope Chest

Posted in Healthy Finances, tagged , , , , on April 1, 2022| Leave a Comment »

Let’s focus on Financial Wellness for a minute! 

Are you one of the almost three in four Americans surveyed recently by the American Psychological Association who said they are experiencing financial stress? Financial stress can affect people physically, emotionally, and psychologically and result in unhealthy coping behaviors.

Financial wellbeing includes being fully aware of your financial state and budget and managing your money to achieve realistic goals. When you analyze, plan well, and take control of your spending, you can make significant changes in how you save, and ultimately how you feel resulting in living a more hopeful life. 

Ohio State University Extension designed an Accounting for Your Money Hope Chest to “help people help themselves” as we work to achieve financial wellness during this time of rapid social and economic change. Managing and controlling our spending and saving is needed to build hope and manage emergent financial stress.

The purpose of the Hope Chest is for individuals and families to –

  • Prioritize spending by separating needs from wants
  • Identify realistic/SMART goals
  • Gather current financial spending and saving information
  • Locate emergency resources
  • Analyze their current budget
  • Develop a “new” Accounting for Your Money calendar
  • Take control of spending resulting in more saving for family goals

Work through the steps of the Accounting for Your Money Hope Chest with your family members and/or co-spenders as you and your family adjust to changing basic needs and wants. Determine how to best spend your money during this period of rapid social and economic change. Your family will be empowered to meet the new challenges brought about by the change, reducing financial emergencies and easing future financial stress.

Written by Margaret Jenkins, Assistant Professor, Family and Consumer Sciences, OSU Extension Clermont County

Reviewed by Nannette L. Neal, Extension Educator, Agriculture and Natural Resources, OSU Extension Clermont County

Sources: 

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Live Well and Maintain Your Financial Health

Posted in Healthy Finances, tagged , , , , , , , on June 4, 2020| Leave a Comment »

COVID-19, social distancing and recent stay at home orders have impacted all aspects of life, including our finances. Protecting health has been a top priority in recent times.  We all need to be following guidelines and making our best efforts to stay physically and mentally healthy to prevent disease. Maintaining financial health during these times is also critically important. Financial wellness is an aspect of wellness that focuses on the successful management of finances. Improve your financial wellness today with these tips:

  • Create a budget. Take a close look at your spending and adjust your budget accordingly.  Saving wherever possible will help your budget in the future.
  • Establish an emergency fund. If you do not have an emergency fund, now is the time to start one. If you have money set aside for non-essential spending or travel, consider using these monies for emergencies instead. Any amount you can put aside to help support you and your household during an emergency will make an impact on your finances.
  • Pay down high-interest debt. If you have any high-interest debt (besides credit card debt) a personal loan or similar and your income has not yet decreased, consider paying off that debt now. The benefits of reducing debt are immense as this provides financial freedom.
  • Consider a balance transfer. Transferring any credit card balances to a 0% for 12-18 months is an option.  Look for no- or low-fee transfers and do your research on any new credit cards before committing. This will give you time to pay down the balance interest free which will free up more cash on hand for the unexpected and add to an emergency fund.
  • Look at your investments. Fight the urge to take a loss and withdraw all your money from the market. For mid-long-term time, it is important to stay the course.  No one can predict what will happen short term, yet over the long run, the economy and markets will come back.
  • Consider insurance options. Some insurance rates may have dropped offering discounted rates. Contact your insurance providers to see if you are eligible for a discount or lower rate. Compare rates with different providers.
  • Talk with your family about money. Discuss how market fluctuations are normal and be open about any negative impacts on your finances. Discuss ways you can save money as a family.
  • Get your credit reports.  AnnualCreditReport.com provides a yearly free credit report.  Read over your reports carefully for any suspicious activity.  If your reports reveal negative borrowing habits from your past, brainstorm ideas to correct them and improve your score.

Practicing financial wellness can have positive mental health benefits, including boosted self-confidence. Take charge of your finances today and be prepared for the future.

For free financial assistance, contact us at:  go.osu.edu/FinancialAssistance

Written by: Beth Stefura, OSU Extension Educator, Mahoning County stefura.2@osu.edu

Reviewed by:  Jenny Lobb, OSU Extension Educator, Franklin County. lobb.3@osu.edu

References:

Consumer Finance Protection Bureau. https://www.consumerfinance.gov/coronavirus/

Ohio Line, Ohio State University Extension. Preparing a Net Worth Statement. https://ohioline.osu.edu/factsheet/hyg-5245

Ohio Line, Ohio State University Extension. Some Options for Resourceful Living. https://ohioline.osu.edu/factsheet/hyg-5248

 

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Is it time for a Family Financial Reset?

Posted in Healthy Finances, tagged , , , , , , on May 14, 2020| 1 Comment »

Over the last two months, the topic of global financial reset has shown up on news feeds alongside headlines about the COVID-19 pandemic, economic shutdowns, and stay at home orders. In our households, we have experienced an unprecedented schedule shift that has changed the way we do work, school, social activities, and yes, even finances. Reload reset technology update digital

This disruption of what was previously considered normal can also provide an opportunity to reset, to review and bring back processes that work for our families.  Assessing what works and what needs adjusting might be seen more clearly in times of disruption, and a reset becomes possible. For some, it has been a slower time with the ability to save money. For others, it has been a chaotic time that may include the loss of income or increased expenses.

The wellness of the family unit can be defined in many domains, financial wellness is one of them. When life brings a new chapter: marriage, empty nest, downsizing, new job, new home and perhaps even a global pandemic; it is a good time to look at financial wellness and make decisions to stay the course, set a new course or reset a course that is not working for us.

Take time to reset:

  • Reset the spending plan. Does your family follow a spending plan? A spending plan is a basic financial process to match income to expenses to meet family goals. If your spending is more than your income adjustments must be made, sometimes temporarily, and sometimes as a new normal.
  • Reset family goals. Family goals may or may not be about money. Schedule a family meeting to check in on the thoughts, dreams, and goals of individual family members. Work together to create family goals that the family can achieve together. When built together, the whole family including children are invested in the outcome. When goals involve a financial shift, family members are more likely to support the spending plan reset to achieve the goal they helped create.save-3402476_1920
  • Reset spending patterns. One possible advantage of global disruption is that we have had an opportunity to see our daily and weekly patterns more clearly through the forced change in our routine. The drive-through coffee on the way to work, ball games, and even dinner out with a movie contribute to our spending but may not always reflect our goals or our spending plan. Depending on the situation, these may be a type of spending leaks. Consider what expenses may not be as important as you once thought, or where savings can be created.

OSU Extension provides a direct educational response to your financial well-being questions. Have you struggled to identify spending leaks or complete financial goal setting? These and many other questions can be submitted privately through our financial tip line.  An Extension Educator will respond directly to you. Follow this link to submit a question: go.osu.edu/financialadvicesurvey

Working together, you can re-establish financial wellness for your family. Starting now allows you to emerge from an uncertain time of change with a new financial perspective and goals.

Written by: Melissa J. Rupp, Extension Educator Family and Consumer Sciences, OSU Extension, Fulton County

Reviewed by: Patrice Powers-Barker, Extension Educator Family and Consumer Sciences, OSU Extension, Lucas County

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