In this video, learn eight essential steps for saving money when you’re broke. Whether you’re struggling with debt or looking to build an emergency fund, these tips will help you take control of your finances and turn your financial situation around.
Learn how to save money when you’re broke by assessing your financial situation, creating a budget, cutting expenses, prioritizing paying off high-interest debt, building an emergency fund, looking for additional income sources, automating your savings, and staying committed and accountable to your goal. By following these eight steps, you can turn your financial situation around and start saving money, even when you feel like you’re barely scraping by. Remember that it’s not impossible and that with dedication and perseverance, you can create a fulfilling life.
Before you can start saving, you need to know where you stand financially. So, write down all of your monthly expenses, including rent, utilities, groceries, and any debt payments. Compare this number to your monthly income to see where you can start making cuts.
Step 2: Create a budget
I can’t stress this enough: you need a budget! A budget is the roadmap to your financial success. It’s going to help you figure out where your money is going and where you can start cutting back. Make sure to include a line item for savings, even if it’s just a small amount at first.
Step 3: Cut expenses
Now that you have a budget, it’s time to start cutting back on your expenses. Look for areas where you can reduce spending, such as eating out, or entertainment. Every dollar you can save is a dollar you can put towards your savings or paying off debt.
Step 4: Prioritize paying off high-interest debt
If you’re struggling with debt, it’s important to tackle the high-interest debt first. This will save you money in the long run, as you’ll be paying less interest over time. Once you’ve paid off the high-interest debt, continue to work on paying off the rest of your debt.
Step 5: Build an emergency fund
An emergency fund is essential for anyone, especially if you’re broke. This money will help protect you from unexpected expenses, such as car repairs or medical bills. Aim to have at least $1,000 in your emergency fund, and eventually build it up to cover 3-6 months’ worth of living expenses.
Step 6: Look for additional income sources
If your current income isn’t enough to cover your expenses and allow you to save, it’s time to look for additional income sources. This could mean picking up a part-time job, freelancing, or even selling items you no longer need. The more income you can bring in, the more you’ll be able to save.
Step 7: Automate your savings
Once you’ve found a way to save money, make sure it’s being automatically transferred into your savings account. This way, you won’t be tempted to spend it. Set up a direct deposit or automatic transfer so that your savings grow without any effort on your part.
Step 8: Stay committed and accountable
Saving money when you’re broke isn’t easy, and it’s going to take some time and dedication. Stay committed to your goal, and find someone who can help hold you to be accountable. This could be a friend or family member, or even a financial coach. Remember, you’re not alone in this journey.
Remember, it’s not impossible, and with dedication and perseverance, you can turn your financial situation around for the better. Good luck!
In this video, learn how to choose a bank account. A beginner’s guide to the different types of bank accounts, including checking accounts, savings accounts, money market accounts, and CDs. You’ll learn about their unique features, advantages, and limitations to make an informed decision about which account is best for your financial goals. Bank account 101.
The video discusses the four main types of bank accounts and their features, including checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). These are the most common bank accounts. Each account type is designed for different purposes, such as everyday transactions, savings, or fixed-term savings with higher interest rates. Learn key features of each account type, such as transaction limits, interest earnings, check-writing privileges, and early withdrawal penalties. The importance of considering financial goals, access to money, and potential interest earnings when choosing an account is emphasized, along with the need to compare rates and fees across different banks and credit unions.
Each of these accounts serves a different purpose and offers unique features and benefits. Let’s break them down one by one.
Checking accounts. These are the most common and widely used bank accounts. They are designed for everyday transactions, such as paying bills, receiving direct deposits, and making purchases with a debit card.
Some key features of checking accounts include:
No transaction limits: You can make as many deposits and withdrawals as you need.
Debit cards: These allow you to make purchases and withdraw cash from ATMs.
Online bill pay: This feature allows you to schedule and manage your payments without needing to write checks.
Overdraft protection: This optional service covers you in case of accidental overdrafts, preventing declined transactions and costly fees.
Checking accounts are ideal for managing your day-to-day expenses, but they typically don’t earn interest, so they’re not the best option for long-term savings.
Savings accounts. As the name suggests, these accounts are designed to help you save money. They typically offer higher interest rates than checking accounts, allowing your money to grow over time.
Some key features of savings accounts include:
Interest earnings: This is the main benefit of savings accounts, as it allows your money to grow.
Limited transactions: Unlike checking accounts, you’re limited to six withdrawals or transfers per month due to federal regulations.
No debit card: Most savings accounts don’t come with a debit card, which can help you avoid the temptation to spend your savings.
Savings accounts are a great option for setting aside money for emergencies or short-term goals. Just make sure you’re aware of any minimum balance requirements or fees associated with the account.
Money market accounts are a hybrid between checking and savings accounts. They offer higher interest rates than traditional checking accounts and often come with check-writing and debit card privileges.
Some key features of money market accounts include:
Competitive interest rates: These rates are typically higher than checking accounts but lower than savings accounts or CDs.
Limited transactions: Like savings accounts, you’re limited to six withdrawals or transfers per month.
Check-writing privileges: Some money market accounts allow you to write checks, although this may be limited as well.
Money market accounts are a good choice if you want the convenience of a checking account with the interest-earning potential of a savings account. However, these accounts often require higher minimum balances than checking or savings accounts.
Certificates of Deposit (CDs). Lastly, we have certificates of deposit, or CDs. These are time-based savings accounts that offer fixed interest rates for a specific term, usually ranging from a few months to several years.
Some key features of CDs include:
Fixed interest rates: CDs offer higher interest rates than savings or money market accounts, but you must commit to keeping your money in the account for the entire term.
Early withdrawal penalties: If you withdraw your money before the term is up, you’ll likely face a penalty, which can eat into your interest earnings.
Various term lengths: You can choose a term that suits your financial goals, but keep in mind that longer terms typically offer higher interest rates.
CDs are a great option if you have a specific financial goal in mind and can commit to not touching your money for a set period.
When choosing an account, consider your financial goals, how often you need access to your money, and the potential interest earnings. It’s also worth shopping around and comparing different banks and credit unions to find the best rates and lowest fees.
In this video, learn how to use and withdraw money from an ATM. Beginner banking tutorial including safety tips and precautions.
This guide provides a step-by-step process for using an ATM, beginning with finding an ATM, and inserting your debit or credit card correctly. It explains how to enter your four-digit PIN and choose a transaction, such as withdrawing cash or checking your account balance. It also provides instructions on entering the amount, waiting for the ATM to dispense your cash, and taking your card and cash before leaving. Learn the importance of being aware of your surroundings, never sharing your PIN with anyone, and taking your receipt to show how much money you withdrew and how much is still in your account.
Step 1: Find an ATM
The first step to using an ATM is finding one. Look for an ATM that is in a well-lit, busy area. It’s always best to use an ATM that is attached to a bank, as they tend to be more secure than other locations.
Step 2: Insert your card
Once you’ve found an ATM, insert your debit or credit card into the card slot. Make sure that the magnetic strip is facing downwards and towards the machine. If your card has a chip, insert it into the slot with the chip facing up.
Step 3: Enter your PIN
Once you’ve inserted your card, the ATM will prompt you to enter your PIN. Your PIN is a four-digit number that you chose when you first received your card. Make sure that you enter your PIN correctly, as you’ll be likely be locked out of your account if you enter it incorrectly too many times. To protect your privacy and prevent anyone from seeing your PIN, cover the keypad with your hand or another object while entering the numbers.
Step 4: Choose your transaction
After entering your PIN, the ATM will give you a few different options. You can withdraw cash, check your account balance, or transfer money between accounts, among other choices. Choose the transaction you want to complete by pressing the corresponding button.
Step 5: Enter the amount
If you’re withdrawing cash, you’ll need to enter the amount you wish to withdraw. Make sure you have enough money in your account to cover the withdrawal, as you’ll likely be charged an overdraft fee if you withdraw more than you have. So be sure you have enough money in your account.
Step 6: Wait for your cash
After you’ve entered the amount, the ATM will dispense your cash. Make sure you take your cash and your card before walking away from the machine. Don’t forget your cash and card!
Step 7: Choose another transaction or end the session
If you want to complete another transaction, the ATM will give you the option to choose another transaction. If you’re finished, choose the option to end your session.
Step 8: Take your receipt
After you’ve completed your transaction, the ATM will print you a receipt. It’s a good idea to take the receipt, as it will show you how much money you withdrew and how much money is still in your account.
Using an ATM is easy and convenient. Just remember to always be aware of your surroundings when using an ATM, and never share your PIN with anyone.
In this video, we’ll provide a basic step-by-step guide on how to fill out a W4 form, a crucial document for your employment paperwork. You’ll learn about the different sections of the form, such as personal information, dependents and other credits, and adjustments to your tax withholding, as well as the importance of updating it when your tax situation changes.
Understanding an IRS W-4 form is an essential step in ensuring that you’re paying the right amount of federal income tax. The form is a critical component of your employment paperwork as it helps your employer determine how much federal income tax to withhold from your paycheck. It consists of several sections, such as personal information, claiming dependents, and making adjustments to your tax withholding. It’s crucial to update the W4 form whenever your tax situation changes, such as getting married or having a child. By following the instructions carefully and providing accurate information, you can avoid any surprises come tax time. Remember to fill out the updated 2023 W4 form, as it is crucial to avoid any discrepancies in tax withholding.
The IRS W-4 form form is a critical component of your employment paperwork, as it helps your employer determine how much federal income tax to withhold from your paycheck.
Before we dive into the details of how to fill out the form, it’s essential to understand what it is and why it’s necessary. The IRS W-4 form is a document that you provide to your employer when you start a new job or whenever your tax situation changes. It helps your employer calculate how much federal income tax to withhold from your paychecks. This tax withholding is necessary because you don’t want to owe a large amount of money to the IRS when you file your tax return at the end of the year.
There are several sections to the form, so we’ll break down each one individually.
Section 1: Personal Information
The first section of the form is relatively straightforward. You’ll need to provide your name, address, Social Security number, and filing status. If you’re unsure what your filing status is, there are three options: single or married filing separately, married filing jointly or Qualifying surviving spouse, and head of household. Choose the option that best applies to your situation.
Next, as the form states, only complete the next few steps, steps 2 to 4, ONLY if they apply to you, otherwise you can skip to Step 5.
Section 2: Multiple Jobs or Spouse Works
If you have more than one job or your spouse works, you’ll need to complete this section. It helps your employer determine how much tax to withhold based on your combined income. You’ll need to follow the instructions on the form carefully and fill out the worksheets to calculate the additional withholding you need.
Section 3: Claim Dependents and Other Credits
This section is where you can claim any dependents you have. Dependents are typically children, but they can also be other relatives or individuals you support financially. Claiming dependents can reduce the amount of tax you owe, so it’s essential to provide accurate information here. Also you may add to this amount any other credits.
Section 4: Other Adjustments
In this section, you can make any additional adjustments to your tax withholding. For example, if you have deductions or credits that you want to claim, you can do so here. You can also use this section if you want to request a specific amount of additional withholding.
Section 5: Sign and Date
Finally, you’ll need to sign and date the form. Make sure you’ve filled out all the sections accurately before signing. If you’re submitting the form electronically, follow the instructions provided by your employer.
Remember, it’s essential to update your W-4 form whenever your tax situation changes. For example, if you have a child or get married, you’ll need to update the form to reflect these changes. Failing to update the form could result in too little or too much tax being withheld from your paycheck.
Filling out an IRS W-4 form may seem overwhelming at first, but it’s a critical step in ensuring that you’re paying the right amount of federal income tax. By following the instructions carefully and providing accurate information, you can avoid any surprises come tax time.
Forms and Documents
Information from the IRS website, where you can also find instructions and the forms you need to fill out.
Money Instructor – Money Instructor is the leading source for financial education and skills development.
Money Instructor does not provide tax, legal or accounting advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors regarding your own situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing.
Learn the basics of car insurance, including what it is, why you need it, and common terminology. We cover different types of car insurance coverage, factors affecting insurance premiums, and optional coverages.
Car insurance explained — a guide on understanding auto insurance basics and why it is essential to have it. Car insurance is a type of contract between the policyholder and the insurance company, where the policyholder pays a premium to the insurer to cover certain damages or injuries resulting from a car accident or other covered events. The video also explains the common terminologies used in car insurance policies, types of car insurance coverage, and the factors that can affect car insurance premiums.
If you own a car, then chances are you’ve heard of car insurance. But do you know what it really is and why it’s important? In this guide, we’ll get into the basics of car insurance, from what it is to why you need it, and everything in between.
Car insurance is a type of contract between you and an insurance company. You pay a premium, which is a regular payment, to the insurance company, and in return, they agree to cover the costs of certain damages or injuries resulting from a car accident or other covered events. These damages can include repairs to your car, medical expenses, and liability for injuries or damages caused to others.
Why Do You Need Car Insurance?
Car insurance is not just an option, it’s a legal requirement in most states. This is because accidents can happen at any time, and the costs associated with them can often be significant. Car insurance helps protect you financially in case of an accident, so you don’t have to pay for damages and injuries out of your own pocket.
Car Insurance Terminology
When it comes to car insurance, there are some key terms that you should be familiar with to help you better understand your policy. Here are a few common terms:
Premium: The amount you pay for your car insurance coverage, usually in the form of monthly, quarterly, or annual payments.
Deductible: The amount you must pay out of pocket before your insurance coverage kicks in. For example, if you have a $250 deductible and your car sustains $1,000 in damages, you would pay $250, and your insurance would cover the remaining $750.
Coverage Limit: The maximum amount your insurance will pay for damages in case of an accident or other covered event. You can choose different coverage limits for the different types of coverage.
Claim: A request you make to your insurance company to cover the costs of damages or injuries resulting from an accident or other covered event.
Policy: The contract between you and your insurance company that outlines the details of your coverage, including the coverage types, limits, deductibles, and also premiums.
Types of Car Insurance Coverage
There are several types of car insurance coverage that you can choose from, depending on your needs and budget. Let’s take a closer look at some of the most common types:
Liability Coverage: This type of coverage is required by law in most states. It helps cover the costs if you injure someone else or damage their property in an accident. Liability coverage typically includes two components: bodily injury liability and property damage liability. Bodily injury liability covers medical expenses, lost wages, and other damages for the other party involved in the accident, while property damage liability covers the cost of repairing or replacing the other party’s property.
Collision Coverage: This coverage helps pay for damages to your own vehicle in case of a collision with another vehicle or object, regardless of who is at fault. It’s especially helpful if you have a newer or more valuable car, as it can help cover the costs of repairs or replacement.
Comprehensive Coverage: This coverage protects your car against damages caused by events other than collisions, such as theft, vandalism, fire, or natural disasters. It’s also known as “other than collision” coverage and provides additional security.
Personal Injury Protection (PIP) or Medical Payments Coverage: This coverage helps pay for medical expenses for you and your passengers in case of an accident, regardless of who is at fault. PIP is required in some states, while medical payments coverage is optional in others.
Uninsured or Underinsured Motorist Coverage: This coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages. It helps pay for your medical expenses and damages in such cases.
Additional Optional Coverages: There are other optional coverages you can consider, such as rental car reimbursement, roadside assistance, and gap coverage, which covers the difference between the value of your car and what you owe on your loan or lease.
Factors Affecting Car Insurance Premiums
The cost of your car insurance premium, or the amount you pay for coverage, can vary depending on several factors. Here are some common factors that can affect your car insurance premiums:
Age and Gender: Younger drivers, especially teenagers, generally pay higher premiums due to their lack of experience on the road. Gender can also be a factor, as statistics show that male drivers tend to have more accidents than female drivers.
Driving History: Your driving history, including your past accidents, violations and claims, can impact your car insurance premiums. If you have a history of accidents or traffic violations, you may be considered a higher risk driver and may have to pay higher premiums.
Type of Vehicle: The type of vehicle you drive can also affect your car insurance premiums. Cars that are more expensive or have a higher risk of theft or damage may result in higher premiums. Additionally, vehicles with high horsepower or that are considered sports cars may also have higher premiums due to the increased risk of accidents.
Coverage Limits and Deductibles: The coverage limits you choose, which are the maximum amount your insurance will pay for damages, and the deductible, which is the amount you must pay out of pocket before your insurance kicks in, can also affect your premiums. Choosing higher coverage limits or lower deductibles may result in higher premiums, while opting for lower coverage limits or higher deductibles may result in lower premiums.
Location: Where you live can also impact your car insurance premiums. If you live in an area with a high rate of accidents, thefts, or vandalism, your premiums may be higher to account for the increased risk.
Credit History: In some states, your credit history can also be a factor in determining your car insurance premiums. Studies have shown that individuals with lower credit scores may be more likely to file insurance claims, resulting in higher premiums.
Car insurance is an essential protection that can help you financially in case of accidents or other covered events. Understanding the basics of car insurance, including the factors that impact your premiums, common terminology, how to choose the right coverage can empower you to make informed decisions and ensure you have the right protection for your needs and budget.
With a good understanding of car insurance, you can confidently navigate the world of insurance and protect yourself on the road. Drive safely and be sure to carry the appropriate car insurance coverage for your needs!
In this video, learn how to file a tax extension to get some extra time to prepare your tax documents. You’ll find step-by-step instructions on how to file IRS Form 4868 and tips to use your extension wisely.
Learn how to file a tax extension with this step-by-step guide. Determine if you need an extension by considering reasons like needing more time to gather tax documents or experiencing a personal or family emergency. Fill out IRS Form 4868 either online or by mail and submit it before the tax year deadline, estimating the amount of tax you owe and making a payment. Remember that an extension only gives extra time to file, not to pay taxes. Use the extra time wisely to prepare, explore tax credits and deductions, and consult a tax professional if needed. Follow up with the IRS to confirm processing and avoid penalties and interest charges. Information for whether you’re a beginner or an experienced taxpayer.
Filing taxes can be a stressful experience, but it’s important to make sure you do it right. If you’re not quite ready to file your taxes by the April deadline, don’t worry! You can file for a tax extension, which will give you some extra time to get your paperwork in order.
Here’s how to file a tax extension:
Step 1: Determine if You Need to File for an Extension
First, you need to determine if you really need to file for a tax extension. If you’re not sure, here are a few reasons why you might need to file for an extension:
You need more time to gather all your tax documents
You’re waiting on a tax form or forms that hasn’t arrived yet
You’re experiencing a personal or family emergency
You’re dealing with a major life event, such as a move or job loss
If any of these situations apply to you, then it might be a good idea for you to file for a tax extension.
Step 2: File IRS Form 4868
To file for a tax extension, you’ll need to fill out IRS Form 4868. This form is available on the IRS website and can be filled out online for free or by mail. If you’re filling out the form online, you’ll need to provide your name, address, and Social Security number. When filling out the form you’ll also need to estimate the amount of tax you owe and the amount you’ve already paid. If you’re filing by mail, you’ll need to print out the form and fill it out by hand.
Step 3: Submit the Form
Once you’ve filled out the form, you’ll need to submit it to the IRS before the tax year deadline. If you’re filing online, you can submit the form electronically. If you’re filing by mail, you’ll need to send the form to the address listed on the form.
It’s important to note that filing for a tax extension doesn’t give you extra time to pay your taxes. You still have to pay by the regular deadline! You’ll still need to estimate the amount of tax you owe and make a payment by the tax year deadline. If you don’t make a payment by the deadline, you could face penalties and interest charges.
Step 4: Get Confirmation
After you’ve submitted your form, you should receive a confirmation from the IRS. If you filed online, you should receive a confirmation email. If you filed by mail, you should receive a confirmation letter in the mail. If you don’t receive a confirmation, it’s important to follow up with the IRS to make sure your extension was processed correctly.
Step 5: Use Your Extension Wisely
Now that you’ve filed for an extension, you have some extra time to get your tax documents in order. Use this time wisely to make sure you’re prepared to file your taxes by the new deadline. You will have until October to file your tax return.
You can also use this time to explore tax credits and deductions that could help you save money on your taxes. Just be sure to consult a tax professional if you’re not sure about the tax laws or if you need help navigating the process.
Filing for a tax extension can give you some extra time to get your taxes in order, but it’s important to remember (don’t forget!) that it doesn’t give you extra time to pay your taxes. Be sure to estimate the amount of tax you owe and make a payment by the April deadline to avoid penalties and interest charges. And remember, if you have any questions or concerns, don’t hesitate to reach out to a tax professional for help.
In general, the federal tax deadline in the United States typically falls on April 15th of each year. However, there are some exceptions that may result in a different deadline, or if the day falls on a weekend as it does in 2023. It’s important to note that the federal tax deadline may vary for different types of taxpayers, such as businesses, individuals, or those living abroad. Also the deadline may be extended due to other reasons.
It’s important to stay updated with the most current tax regulations and deadlines to avoid any potential penalties or interest for late filing or payment. It’s recommended to consult with a qualified tax professional or visit the official IRS website for the most up-to-date information and taxpayers are responsible for ensuring that their federal taxes are filed and paid on time to avoid any potential repercussions from the IRS. Always consult with a qualified tax professional for accurate and reliable advice on your specific tax situation.
Forms and Documents
Information from the IRS website, where you can also find instructions and the forms you need to fill.
Money Instructor – Money Instructor is the leading source for financial education and skills development.
Money Instructor does not provide tax, legal or accounting advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors regarding your own situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing.
In this video, we discuss the IRS W-2 tax form (W2) and its importance in filing taxes. Employers are required to send this form to employees and the IRS annually, providing details of earnings and taxes withheld from the previous year.
The W-2 contains personal and employer information, including identifying details, taxable income, and withheld taxes. It also includes boxes detailing Social Security and Medicare taxes, tips earned, dependent care benefits, and deferred compensation income, among others. By understanding the impact of each box on taxable income, taxpayers can ensure the completeness and correctness of their tax returns.
The W2 form from the IRS, which is a pretty important document when it comes to filing your taxes. This is a document that employers are required to fill out and send to both you and the IRS annually, and it provides information about your earnings for that previous year, as well as any taxes withheld. The W-2 provides details on what money was earned in that previous year, plus it details any withheld taxes paid during that same timeframe.
If you have ever worked for an employer, chances are that you received a W-2 tax form at the end of the year. Your employer must send this form to you no later than January 31st following your last year of work in order that you have enough time to file your taxes for that calendar year.
So, what types of information can be found on your W-2?
A W-2 form is a document that summarizes your earnings and tax withholdings for the year. This form has identifying information such as your name, address and Social Security number; it also has information about your employer (company name, address, and employee identification number). Moreover, there are several boxes which report income and taxes.
Let us take a closer look at the information on the W-2 form.
The W-2 form contains various boxes containing personal and employer data. Boxes A-F contain identifying details like your social security number, name, address and employer’s name and address; this helps the IRS match earnings to your tax return.
Boxes A-F: These boxes contain all the information that identifies you and your employer. You’ll see your social security number, name, address, as well as any employer identification numbers (if applicable).
Boxes 1 and 2: Box 1 displays your total taxable income for the year, including wages, salaries, tips, bonuses and other compensation. Box 2 displays the amount of federal income tax withheld by your employer.
Boxes 3-6: Boxes 3 and 5 indicate the amount of your earnings subject to Social Security and Medicare taxes, respectively; Please note that these amounts may differ from box 1 if you deferred income such as investing in a 401(k) plan. Boxes 4 and 6 show any withheld taxes due.
Boxes 7 and 8: If you earned money through tips, Box 7 displays how much has been reported as tips earned, while Box 8 indicates how much your employer allocated to you in terms of tips.
Box 9: Box 9 is no longer in use and has been left grayed out for future consideration.
Box 10: If your employer provided or paid for dependent care benefits, Box 10 reflects this amount.
Box 11: If your employer provided deferred compensation income from a non-qualified plan, this information is reported in Box 11.
Box 12 outlines any compensation or reductions to your taxable income.. You’ll see a single or double letter code associated with each, such as contributions made to a 401(k) plan, health savings account contributions from your employer, or group-term life insurance over $50,000 that must be included on the tax return.
Box 13: Box 13 outlines whether you were employed as a statutory employee exempt from federal income tax withholding, participated in an employer-sponsored retirement plan such as 401(k) or 403(b), or received sick pay through an external source such as an insurance policy.
Box 14: If you have additional tax information that does not fit into other W-2 boxes, your employer may use Box 14 to report it. Examples include state disability insurance taxes withheld, union dues and uniform payments, health insurance premiums deducted and more.
Boxes 15-20: Your employer uses boxes 15-20 to report state and local income tax information with the two-letter abbreviation for your state, along with an assigned state ID number. These boxes can cover wages for two states as well as two localities; if more than two entities need reporting information to the same employer, a second Form W-2 must be prepared for you to use.
I hope this information has provided you with a better understanding of your W-2 form. Learning how to read a W-2 form is essential for filing your taxes correctly and by understanding each box and its impact on taxable income, you can help make sure that your return is complete and correct.
What is the Fed and what does it do? Learn the role of the Fed, or Federal Reserve, which is the central bank of the United States, in managing the economy and preventing financial crises through monetary policy.
Here you will learn about the Federal Reserve system. Its purpose is to manage the economy and prevent future financial crises through monetary policy, which involves controlling the supply of money in the economy, regulating financial institutions, and influencing interest rates. By setting interest rates, the Federal Reserve can help keep the economy on track and support sustainable economic growth over the long term. This video will explore the importance of the Federal Reserve, its role in stabilizing the economy, and the impact of its actions on inflation, employment, and the cost of loans for businesses and individuals. Ultimately, the Federal Reserve is a crucial institution that provides a safety net during tough times and ensures that banks and other financial institutions operate responsibly.
The Federal Reserve is the central bank of the United States. Its purpose is to keep America’s economy stable and healthy, even during challenging periods.
Let’s go back a bit and explain: the Federal Reserve was established in 1913 after several financial panics and depression had struck America. People realized there needed to be an effective way of managing the economy and averting future crises.
The Federal Reserve System consists of several components. The Board of Governors is the primary decision-making body, while 12 regional Federal Reserve Banks exist throughout America to carry out policies established by the Board. One of the primary functions of the Federal Reserve is monetary policy. Through this program, they attempt to influence factors like inflation, employment levels and economic growth by controlling money supply in an economy. They do this by altering interest rates or purchasing and selling government bonds.
The Federal Reserve plays an essential role in overseeing financial institutions, like banks, to guarantee they adhere to regulations and remain stable. And during times of crisis, the Fed can act as a lender of last resort by providing emergency funding to banks and other institutions so the financial system does not collapse.
Now, you might be wondering why the Federal Reserve is so important. Without its control, the economy would be far more unpredictable and unstable. The Fed helps control inflation rates, prevents financial panics, and guarantees banks and other institutions operate responsibly. Of course, the Federal Reserve is no perfect institution. Some have criticized it for not doing enough to prevent the 2008 financial crisis or for being too secretive and independent from government oversight.
Relationship between interest rates and inflation from the Federal Reserve. As previously discussed, one of the primary ways the Federal Reserve fulfills its mandate is through monetary policy. One of its most powerful tools for carrying out this mandate is setting interest rates.
Interest rates are the cost of borrowing money, impacting everything from house prices to loans for businesses. When interest rates are low, borrowing becomes cheaper and it becomes easier for individuals and businesses to invest in the economy; conversely, when rates are high, borrowing becomes more costly and may slow down economic activity.
How does the Federal Reserve set interest rates? They set a target for the federal funds rate, which is what banks charge each other for overnight loans. When they want to reduce rates, they can inject more money into the economy by buying bonds which puts downward pressure on interest rates; conversely, when raising rates they remove money out of circulation and raise them accordingly.
The Federal Reserve can influence long-term interest rates by controlling the supply of money in the economy. When they purchase government bonds, this increases money supply and may help lower long-term rates; conversely, selling bonds reduces this supply and raises them.
It is essential to remember that the Fed does not directly control interest rates, but rather influences them through its monetary policy decisions. While interest rates can be an effective tool for economic stabilization, caution must be exercised not to reduce them too drastically or rapidly as this could lead to inflation or other economic imbalances.
Overall, the Federal Reserve plays an essential role in the U.S. economy. It ensures everything runs smoothly and offers a safety net during times of hardship. By setting interest rates, they help maintain stability and encourage sustainable economic growth over time.
Learn important tips on how to build credit by using credit cards and loans responsibly, how to maintain good credit by making payments on time and keeping credit utilization low, and how to monitor credit reports to ensure accuracy.
Here we provide a guide to understanding credit and its importance in personal finance. We cover what credit is, why it matters, and how to build and maintain good credit. The guide emphasizes the significance of making timely payments, keeping credit utilization low, monitoring credit reports, and being patient in building good credit. Additionally, it highlights the potential negative factors that can hurt credit scores, such as missed payments, defaulting on loans, or having a high debt-to-income ratio. We also remind viewers that credit is just one aspect of financial health, and it is important to budget, save, and invest for a secure and prosperous future.
If you’re just starting out or you’ve had credit for a while, understanding how credit works is an important part of personal finance. Here, we’ll cover what credit is, why it matters, how to build credit, and importantly, how to maintain good credit.
So, what is credit? Credit is the ability to borrow money or obtain goods or services with the promise to pay later. It’s a way of borrowing money that you promise to pay back with interest. Credit is used for things like buying a house or car, getting a loan, or even renting an apartment. Your credit history is a record of how you’ve managed credit in the past, and it’s used by lenders and creditors to determine whether or not to extend credit to you in the future.
Why does credit matter? Having good credit can open up a lot of opportunities for you. It can help you get approved for loans with lower interest rates, which can save you money in the long run. Good credit can also make it easier for you to rent an apartment or get a job, since many employers and landlords will check your credit history as part of the application process.
So, how do you build credit? One way to start building credit is by getting a credit card. If you’re just starting out, you might need to apply for a secured credit card, which requires a security deposit that serves as your credit limit. This is a good option if you don’t have any credit history yet or if your credit score is low. Once you have a credit card, use it responsibly by making small purchases and paying your bill on time every month. This shows lenders that you can manage credit responsibly, and it will help you build a positive credit history.
Another way to build credit is by taking out a loan. This could be a personal loan, a car loan, or a student loan. Just like with a credit card, make sure you make your payments on time every month. This will show lenders that you can handle different types of credit and manage your finances responsibly.
How to Maintain Good Credit. Now that we’ve covered how to build credit, let’s talk about how to maintain good credit. The most important thing you can do to maintain good credit is to make your payments on time. Late payments can have a big impact on your credit score, so it’s important to stay on top of your bills. If you’re having trouble making a payment, reach out to your lender or creditor and see if they can work with you to set up a payment plan.
Another way to maintain good credit is to keep your credit utilization low. Credit utilization is the percentage of your available credit that you’re using at any given time. For example, if you have a credit card with a $1,000 limit and you’ve charged $250, your credit utilization is 25%. Ideally, you want to keep your credit utilization below 30%. This shows lenders that you’re not relying too heavily on credit, and it can help improve your credit score.
It’s also important to note that building good credit takes time, so be patient and consistent in your efforts. Avoid taking on more credit than you can handle and don’t close old credit accounts, as this can shorten your credit history and lower your credit score.
Finally, make sure you’re monitoring your credit report regularly. You’re entitled to a free credit report from each of the three major credit bureaus, Equifax, Experian, and TransUnion. once a year. Review your credit report to make sure there are no errors or fraudulent activity. If you do find errors, reach out to the credit bureau to have them corrected.
Improving Credit Score. In addition to the tips we’ve covered, there are a few other things you can do to improve your credit score. For example, if you have a high credit utilization rate, you can try paying down your balances or requesting a credit limit increase. You can also consider becoming an authorized user on someone else’s credit card, which can help you build credit without taking on the responsibility of making payments.
It’s also worth noting that there are some things that can hurt your credit score. These include things like missed payments, defaulting on a loan, or having a high debt-to-income ratio. It’s important to be mindful of these factors and take steps to address them if they arise.
Finally, it’s important to remember that credit is just one aspect of your overall financial health. It’s important to have a budget and live within your means, save for emergencies, and invest for your future. By being responsible with your finances and managing your credit wisely, you can set yourself up for long-term financial success.
By getting a credit card, making payments on time, keeping your credit utilization low, monitoring your credit report, and being patient, you can build a positive credit history that will open up many opportunities for you in the future. Remember to also be mindful of factors that can hurt your credit score and take steps to address them if they arise. With responsible credit management and overall financial responsibility, you can achieve your financial goals and set yourself up for a secure and prosperous future.
If you’re expecting a tax refund this year and want to learn more about what to expect, here we’ll provide you with valuable insights about the tax refund process for the 2023 filing season. You’ll learn about the average tax refund amount, the timeline for receiving your refund, how to track its progress, and more. We’ll also cover the impact of the ongoing pandemic on tax refunds and how the IRS is handling the backlog of tax return and how taxpayers can track their progress using the IRS “Where’s My Refund?” site. Whether you’re a beginner or an experienced taxpayer. New for 2023 for 2022 tax filing.
Are you anticipating a tax refund this year? It’s understandable to feel uncertain about it given the pandemic’s upheavals. But don’t fret – we have some information to give you an accurate picture of what to expect.
Last year’s average tax refund was nearly $3,300, so it’s no surprise that so many people are eager to receive their refund. A recent survey revealed that almost 70% of taxpayers are nervous about receiving their refund this year and 1 in 5 worry their refund may be delayed in 2023.
How long will it take to receive your refund? According to the IRS, most refunds are processed within 21 calendar days. However, if you filed a paper return, processing time could extend up to six months or more. In the best-case scenario, paper returns could result in waiting around four weeks for a refund; thus e-filing your tax return is recommended if you have yet to do so.
If you’re uncertain of the status of your refund, check it out on the “Where’s My Refund?” page on the IRS website. If you e-filed, you can check its progress 24 hours after filing; however, if filed by paper, information may not be available until four weeks after mailing your return.
The “Where’s My Refund?” tracker will provide you with a personalized refund date once the agency processes and approves your return. It also tells when the IRS received your return, when it was approved, and when it will be sent.
This year, the IRS began tax season with an overwhelming backlog of about 10 million returns. To tackle this and prepare for this year’s filing season, they have been hiring additional personnel. Thus far, Americans are filing their returns earlier than last year – 36.9 million returns have been filed through February 17th, representing an increase of approximately 3% compared to this same time last year, according to IRS data.
The IRS is processing claims faster than anticipated in 2022, with 36.8 million returns processed through February 17th — up 10% from a year earlier. Nonetheless, keep in mind that errors or other issues can cause tax returns to get flagged for agent review, delaying your refund as well.
In conclusion, you can typically expect your refund within 21 calendar days if you e-filed your return. On the other hand, paper returns may take up to six months or longer. Be sure to check “Where’s My Refund?” regularly for updates and remember any mistakes or issues with your return could cause delays. We wish you luck in receiving your refund soon!
Need more help?
For more help with taxes we suggest TurboTax. (This is an affiliate link and we may receive compensation if you use this service, at no additional cost to you. We appreciate your support, as it helps us create more content for you.)
Money Instructor – Money Instructor is the leading source for financial education and skills development.
Money Instructor does not provide tax, legal or accounting advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors regarding your own situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing.
Here we present credit scores explained in an easy to understand way. Understanding your credit score is crucial for managing your finances, whether you’re just starting to build credit or have been doing so for a while.
A credit score is a number that represents your creditworthiness to lenders. Lenders use it to determine loan terms and interest rates and you can improve your score by paying bills on time, keeping credit utilization low, and monitoring your credit report. A higher score means better loan terms, and a lower score can make it harder to get approved.
Whether you’re just starting to build credit or have been managing your finances for a while, understanding your credit score is essential. Here we will give you a quick guide on credit scores.
So, what is a credit score? Your credit score is a three-digit number that represents your creditworthiness to lenders. It’s calculated based on your credit history, which includes things like your payment history, credit utilization, length of credit history, and types of credit accounts you have. Credit scores are typically calculated by credit reporting agencies like Equifax, Experian, and TransUnion. Your score can range from 300 to 850, with higher scores indicating that you’re a lower risk borrower.
Why is credit score important? Well, when you apply for a loan or credit card, the lender uses your credit score to determine whether to approve your application and what interest rate to offer you. A higher score can lead to better loan terms, while a lower score can make it harder to get approved or result in higher interest rates.
So how can you improve your credit score? The good news is that you have control over your credit score. Here are some things you can do to improve it:
Pay your bills on time: Your payment history is the most significant factor in determining your credit score, so it’s essential to make all of your payments on time.
Keep your credit utilization low: Credit utilization is the amount of credit you’re using compared to your total available credit. Keeping this ratio low, ideally below 30%, can help boost your score.
Don’t close old credit accounts: Length of credit history is another factor that affects your score, so it’s generally a good idea to keep your old credit accounts open even if you’re not using them.
Monitor your credit report: Check your credit report regularly to make sure there are no errors or fraudulent accounts. You can get a free copy of your credit report from each of the three credit bureaus once per year.
So if that is how you can improve your score, what are some things that can hurt it? Here are some common things that can negatively impact your credit score:
Late payments: As mentioned earlier, paying your bills on time is crucial. Late payments can have a significant impact on your score.
High credit card balances: Using too much of your available credit can also hurt your score.
Applying for too much credit: Applying for multiple loans or credit cards within a short period can make you appear risky to lenders and lower your score.
Collections and charge-offs: If you fail to pay a debt and it goes to collections or is charged off, it will have a severe negative impact on your score.
So, there you have it – the basics of credit scores! Remember that your credit score is an essential tool for managing your finances and achieving your financial goals. By understanding how it works and taking steps to improve it, you’ll be on your way to a better financial future.
Website Resource
Money Instructor – Money Instructor is the leading source for financial education and skills development.
For tax season, filing taxes and navigating the complexities of the tax code can be overwhelming. In this video, we’ll share essential tips to help you make the most of your tax return. From keeping track of your finances and understanding tax deductions, to filing on time and using tax software, these tips can help you avoid mistakes, save money, and make tax season less stressful. Whether you’re a beginner or an experienced taxpayer.
Here are some tips for tax season to ensure a successful filing season. With these suggestions, you can better navigate the complexities of the tax code, and make sure you take advantage of all available deductions and credits, and potentially save some money as well.
Tracking your finances is essential when filing taxes. Not only does this allow you to claim all deductions and credits that apply, but it also helps avoid any mistakes and provides evidence in case of an audit. To make this easier, try using financial software or online tools for tracking income and expenses; just be sure to store all physical receipts securely in a safe place for safe keeping.
Understanding tax deductions is essential. There are countless deductions available, such as charitable donations, medical expenses and business costs. To ensure you don’t miss any out when filing taxes in the coming year, keep track of these deductions on the IRS website or consult a tax professional for guidance.
Filing your tax return on time is essential to avoid extra penalties and interest charges. If you can’t make it on time, you can request a six-month extension by filing our the necessary tax form; however, remember that an extension does not give you more time to pay any taxes owed; you still must estimate and pay what owe by the original due date in order to avoid additional fees.
To make tax filing simpler, consider using tax software. Most programs guide you through the filing process and identify all deductions and credits that may apply to you. Some even provide features like audit protection and e-filing. If your situation is more complex, consulting with a tax professional such as a CPA, or attorney could be beneficial; they can help navigate the tax code and ensure nothing important is missed during filing.
Remember, accurate record-keeping, understanding deductions, filing on time with tax software and seeking professional help if it is needed are all essential for a successful tax season. By following these tips you can make the process less stressful and help that you don’t pay more than you owe.
Need more help?
For more help with taxes we suggest TurboTax. (This is an affiliate link and we may receive compensation if you use this service, at no additional cost to you. We appreciate your support, as it helps us create more content for you.)
Money Instructor – Money Instructor is the leading source for financial education and skills development.
Money Instructor does not provide tax, legal or accounting advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors regarding your own situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing.
