CentsAble Chat

The Path To Achieving A Better Life Experience A 529 ABLE Plan leads to less stressUntil 2014, achieving a better life experience for the disabled was difficult and resulted in a lot of heartache for them and those caring for them. Too many assets meant reduced or lost SSI or SSDI benefits, therefore financial struggles were almost a given. According to Author Patricia Roberts, help is available through a 529 ABLE Plan. A visit to nast.org is a great start to gain more information.

Independence Is AttainableTax-free money leads to more controlThe freedom of a 529 ABLE plan is indisputable, because it provides tax free earnings on the money you save and the ability to spend that money, tax free, for a wide range of expenses. Independence is no longer a pipe dream, because these plans give more control and allow for more discretion in their quest to achieve a better life experience.

Benefits That Change LivesHelp is available from friends and familyBenefits of a 529 ABLE plan are vast and life-changing! Although capped at $15,000 per year, contributions are not limited to a disabled person’s minimal earnings, because friends, family and employers are allowed to contribute, as well. Furthermore, accounts valued at up to $100,000 will not affect SSI or SSDI benefits. And even though there’s no federal tax deduction for contributions, many states allow for this. These tax-free funds may be used for a variety of expenses including medical care, housing, transportation and education, to name a few, but a good place to get a full handle on benefits is ablenrc.org.

Who QualifiesHow to determine if a 529 ABLE is for youMedically qualified persons whose disability started before the age of 26 may take advantage of this plan, even if you don’t receive SSI or SSDI benefits, as long as you meet Social Security’s criteria and receive a letter of disability certification from a licensed doctor.

Take The First StepIt’s easy with the right informationOpening an account is fast and easy! A good place to start is giftofcollege.com because they outline available options for all 50 states, and be sure to check out their helpful flipbook.  Also, many online brokerage firms can help you set up a 529 ABLE plan.

Get Active In Your Kids’ Education Explore the optionsA lot of stress is placed on parent’s shoulders when it comes to their kids’ education; considering health risks, controversial material, dedicated teachers – can leave people wondering what is best for their young ones. Kids must go to school, but what’s the best option? Send them to the public school in your district, homeschool, pay for a private, charter or other alternative education program? With so many choices, budgeting for school choice can be harrowing, but necessary to assure the best outcome.

Scholarships Aren’t Just For College! Finding ways to payMany would be surprised to know that there are scholarships for K-12 available, or that fourteen states offer education vouchers to low-income families and those with special needs, and eight states provide a tax credit for tuition and related expenses. Many states offer charter schools and several alternatives to traditional public education, so spend some time researching all available options.

Budgeting For School Choice Be Intentional!Create a budget that focused on money for the school of choice. It may sound impossible but try it before the idea is dismissed. It’s a welcome surprise how much is found after looking closely at income versus expenses and making some changes. Being intentional with money produces astounding results!

Plan Ahead Time is a powerful toolOnce the money is found to cover this year, start planning ahead. With time on your side, there’s a lot more you can do. Low-income families can open a Coverdell or education savings account and contribute up to $2,000 per year. Earnings are tax-free when used for your child’s education. Another option is the 529 plan, which allows the flexibility to save a lot more. GiftOfCollege.com CFO, Patricia Roberts outlines the details, benefits and strategies in her book, “Route 529: A Parent’s Guide To Saving For College And Career Training With 529 Plans.”

The Budget Scavenger Hunt Look for money in unexpected placesGo beyond the traditional “found money” such as tax refunds, bonuses and salary increases, and consider life changes like the end of potty training or aging out of daycare as places to re-direct those expenses to pay for education. You can also look for “spare change” in your budget or consider other surprising ways to save money.

Getting Started Can you spare 15 minutes?“Route 529” Author, Patricia Roberts says you can open a 529 plan in as little as 15 minutes, and there’s a ton of information and plans to choose from at giftofcollege.com!

It Takes A Village! Give and receive the gift of education!You don’t have to go it alone, because friends, family, even employers can contribute to 529 plans, and you can contribute for friends and family! GiftOfCollege.com embraces the adage “it takes a village to raise a child” by offering gift cards for any occasion, redeemable to a new or existing 529 plan, leading you to successfully budgeting for school choice.

Keep Your Eyes Open What you don’t know can cost you! A first paycheck garners a lot of excitement, until the reality of taxes sets in, which usually leads to shock. But fear not, because there are benefits and perks that many young employees don’t know to ask about and/or aren’t explained. It’s important to remember that salaries and benefits can be negotiated, in many cases, so it’s important to consider more than just base pay.

Consider What You Want From A Job Interview the company, while they’re interviewing you Employment is a mutually beneficial relationship. Yes, you want the job, or you wouldn’t be sitting in an interview, but they need you, or you wouldn’t be sitting in an interview, so let them know how you can benefit them. It’s important to keep your eyes open to potential by being sure to ask about all the ways they can benefit you.

Benefits Have Monetary Value How to benefit your budgetWhat can your employer offer you, besides a paycheck? Things like discounts on products & services you already use, including health insurance, leaves more money to budget elsewhere. A 401K helps you save for retirement and lowers your tax bill. And a lot of companies offer a match, which is free money!

Vacation Time, Or Emergency Fund?A way to start your emergency fund without cashMany states require an employer to pay for any unused vacation time if the company has layoffs. Keeping a portion of vacation time on the books is a great way to beef up a job loss or 6-month emergency fund, while trying to save cash. This way, there’s a little cash immediately, regardless of how much or little you’ve managed to save.

Give Yourself A Raise!Using taxes to balance your incomeYou dictate how much of your paycheck is withheld to pay federal income tax. Withhold too much, and there’s a good chance for a bigger return at tax time; too little, and it’s time to pay up. Finding the magic number is confusing, but it’s worth learning about, especially for someone who struggles to make ends meet, all year long, but gets a hefty tax return. A visit to the IRS’ Federal Tax Withholding Calculator can help you balance it out and cut the stress! You can also cut the amount you owe by contributing to your 401K or Health Savings Account (HSA).

Bottom Line What’s in a job?When it’s time to look for a new job, consider more than the salary. The benefits and perks could do wonders for your budget, that’s why it’s important to keep your eyes open.

Live The Life! The life you want…on your terms What does your perfect life look like? A big house? Fancy cars? Investing? Philanthropy? More time with family and friends? Goals vary from person to person, but if there’s no focus on what you really want, how can you possibly know what you need? Budgeting plays a major role in your planning because it helps you pay for your daily life, while preparing for your future life.

Look Into The FutureBudgets show where your money goes A budget breaks down your money and helps you plan for its use. Unless you’re born into wealth, it’s hard to live the life you want without a budget, because money flies out the window, making it hard to get a handle on spending and saving habits.  

Be PassionateTurn your passion to money There are a gazillion people who work at jobs they can’t stand but have a hobby that lights them up and brings them happiness and fulfillment. How great would it be to make a living doing what you truly love? Budgeting lays out how you might get there by giving you an aerial view of your finances. How much you need to get started and make, how much to purchase equipment and operate. Perhaps a side hustle is necessary, or a strategic investment. The only way to live the life of your dreams is to plan for it.

Change Is GoodBad habits require changeBad spending and saving habits work against a desire to live the life many want and getting older doesn’t help because that usually means more financial responsibilities. But change is possible! It may mean sacrifice by taking on a side job, cutting back on going out and knocking out debt. The good news is that these changes lead to your ideal life.

Ah, To Be Young Don’t waste an opportunityTeens and young adults are favored with time and should take advantage of it. While mom and dad are footing the bill, you can explore your interests, find out what you’re good at, or find mentors and create a network of people that you can benefit, who can benefit you in turn. Once you’ve got a clear vision of the life you want and what you need to get there, think about what you can do, today. Take classes, find volunteer work in your area of interest. Get a job and start saving. Become an entrepreneur! Today, you’re in complete control of how you spend your money.

Debt – The Great Destroyer Avoid debt at all costsIf you’re looking to strip away opportunity, just get into debt. Life never goes completely as planned, that’s why it’s a good idea to have an emergency fund – it’s a necessity. Without it, you’re destined for debt and debt destroys choice. If you want control of your life, to live completely on your terms, avoid debt at all costs. It is possible to live debt free. What’s the secret? Shift from the “buy now, pay later” mindset to “save now, pay later” and always live within your means.

Life on a budget is good! Whether it’s a financial or food budget, it’s empowering, freeing, calming and exciting! It changes the way you think and dream – and the decisions you make in response to those thoughts and dreams. “CentsAble” Bobbi compares budgeting to dieting and shares ideas for using both to reach your goals.

If you’re restricting your spending today, it’s for a specific spending purpose tomorrow or somewhere in the future. A budget is simply a breakdown of your money and a plan for how you want to spend it.

Life on a budget doesn’t mean you have less money, it just means you’re choosing to only spend a certain amount for one thing, so you have enough to spend on another – as opposed to just spending because there’s still money in your bank account. That’s mindless spending, and it causes a lot of stress down the line, when you realize there are still other things you need to pay for, which you didn’t think about in the moment, and there’s no money left.

The beauty of the budget is simply that it keeps track of all those other things you need to pay for, so you make financial decisions with less stress. And you can use it to hit your financial goals like paying off debt, saving for a vacation, anything you want! This is why I love budgeting!

Budgets are not a one-size fits all! They’re very personal, and should reflect your values and goals, as much as your wants and needs. The budget that works for one may not work for another; there is no right or wrong when it comes to your budget – it’s purpose is to help you achieve your best life!

Life on a budget! Try it! You might like it!

How can parents teach their kids to budget? And why should they? “CentsAble” Bobbi shares more of her interview with Neale Godfrey, Author of “Be Money Smart in Tough Times” who shares some great tips and strategies to help your kids master their financial future.

Think tax breaks are only for the rich? Think again! “CentsAble” Bobbi details tax breaks that are perfect for teens and young adults with low income!

The thought of buying your first car can be exciting, but the process can be daunting for parents and the kids they’re helping to buy a car! Financial Literacy Advocate, Harsimran Chohan shares her first car buying experience, while “CentsAble” Bobbi shares tips for getting prepared and creating your car-buying budget.

Back-to-school shopping is a great time to teach your kids the value of a dollar, smart spending and saving – while giving them incentive not to break the bank! “CentsAble” Bobbi outlines an easy 4-step challenge to make this year’s shopping experience a win-win!

Teachable moments are everywhere! Learn how to recognize and use them to teach your kids financial literacy, with the help of Financial Literacy Advocate, Harsimran Chohan and Creator of the “kids and money” topic, Neale Godfrey.