If you’re a parent or a future college student wondering how you’ll ever pay for college, the tax-advantaged 529 college savings plan was designed to encourage saving for future education expenses–even for elementary and secondary students. I’m working with Pelican to help educate people on how to save for college, especially with support from your family and friends. By saving in advance and allocating 529 funds to various investment options, you might not need to take out any student loans to attend college. That can save a considerable amount of interest over the life of a loan. Can a 529…

So many people are curious how to build generational wealth. We want the best for our kids and for them to have financial security. Today’s article was inspired by a question from Nate M., who says, “Does interest income from savings bonds purchased for my 3-year-old child count as qualified income for contributing to an IRA for her retirement?” Thanks for your question, Nate! I love that you’re already thinking about her financial future. If you also have kids or want to start a family someday, it’s essential to get familiar with strategies and accounts that make it a little…

If you want a secure financial future, maxing out a tax-advantaged retirement account as early and as often as possible is the secret. But many people don’t realize you can have multiple retirement accounts. You can sock away even more money if you follow the rules for each type of account.  Here will review the rules for contributing to multiple retirement accounts. You’ll learn how to qualify for different accounts and avoid mistakes. How many workplace retirement accounts can you have? Technically, there’s no limit on the number of retirement accounts you can have. However, there are strict contribution limits…

If you or a loved one has federal student loans, there’s good news and bad news. You probably already know the bad news: President Biden’s attempt at student loan forgiveness for up to $20,000 got struck down by the Supreme Court in June. Plus, after a suspension of monthly payments since March 2020 for pandemic relief, they’ll be due again starting in October 2023.  But the good news is that the White House created a new and more generous income-driven student loan repayment program known as SAVE, or Saving on a Valuable Education. Some of its benefits begin this summer,…

Kerri H. asks, “I have about $20,000 in credit card debt and want to know if it’s better to pay it off using a home equity line of credit or a loan from my 401(k)?” I appreciate your question, Kerri! This show will answer it by reviewing eight of the best methods to pay off debt and their pros and cons. You’ll learn how to evaluate different options and know which one is best for you in the long run. Hello, friends, and thanks for joining me this week! I’m Laura Adams, a money expert and author who’s been hosting…

A Money Girl listener named Teresa P. says, “I just listened to your recent podcast on UGMA and UTMA accounts. I’m 38 years old and discovered about three years ago that my mom set up one of these accounts for me, and I had to pay taxes on it. Should I keep the money where it is or transfer it to a different account, such as a Roth IRA, brokerage, or high-yield savings?” Thanks for your question, Teresa! You must have been pretty surprised to find that you own assets in a custodial account. Knowing what to do with an…

Differences Between Banks and Credit Unions The fundamental difference between banks and credit unions is that banks are for-profit businesses and credit unions are non-profit financial cooperatives. That’s a fancy way of saying that credit unions are owned by their customers or members, and banks are owned by outside investors, who may or may not deposit money there.   Therefore, banks are in business to please their investors, which can be at odds with what’s best for customers. But credit unions have the sole responsibility to serve their members. That’s why credit unions are known for giving high levels of customer…

Since there’s been so much in the news lately about a potential recession, on top of inflation, stock market volatility, and interest rate hikes, I’d like to go over seven steps to protect your finances if you’re feeling uneasy about the economy. Even if there isn’t a recession, “recession-proofing” your finances is an excellent way to strengthen them and ease the impact of any future hardship! Recessions There are different definitions of a recession; however, most economists agree that it’s a period of declining economic performance that lasts at least several months. Since the 1940s, we’ve had a recession in…

I received a question from Maria M., who said, “I’m a new U.S. immigrant working hard to build good credit and make smart financial decisions. I’m so glad to find your Money Girl podcast because it’s helping me a lot. I have $8,000 in credit card debt and am considering paying it off with a 3-year loan that would charge 16% APR. Would that be a good option for me, and how would it affect my credit score?” Welcome to the U.S., and thank you for the great question, Maria! I’ll give you an answer on this show and discuss…

Figuring out how much you should save for retirement can seem more like an art than a science, especially if you’re unclear about critical planning variables. That’s why having a benchmark for the amount to save by age can be helpful.  On this recent episode of my long-standing finance podcast, Money Girl we went over this topic in depth. Feel free to read on to learn what we covered or listen in the player at the top of this article. We cover typical sources for retirement income, how much you’ll need, the best investment accounts to use, and savings goals…