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Category: Saving And Spending

What Is Financial Mindfulness And How Do You Achieve It?

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| Personal Finance, Saving And Spending

Financial mindfulness helps you worry less, save more, and live better at every income level. But what exactly is it, and what tools can help you achieve it?Financial mindfulness helps you worry less, save more, and live better at every income level. But what exactly is it, and what tools can help you achieve it?

The post What Is Financial Mindfulness And How Do You Achieve It? appeared first on Money Under 30.

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New Rules And Regulations For Businesses In 2021

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| Personal Finance, Saving And Spending

Anyone who owns a business or works for one should know about 2021’s changes in US employment law, including pandemic relief funding and increased minimum wages.Anyone who owns a business or works for one should know about 2021’s changes in US employment law, including pandemic relief funding and increased minimum wages.

The post New Rules And Regulations For Businesses In 2021 appeared first on Money Under 30.

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Is A Third Stimulus Check On The Way?

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| Personal Finance, Saving And Spending, Taxes

Americans have already gotten two stimulus checks, but a new bill offers hope that a third one will soon be on the way. When can you expect the funds?Americans have already gotten two stimulus checks, but a new bill offers hope that a third one will soon be on the way. When can you expect the funds?

The post Is A Third Stimulus Check On The Way? appeared first on Money Under 30.

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Where Should You Retire? A Comprehensive Guide To Retirement Costs In All 50 States

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| Investing, Personal Finance, Saving And Spending

Studies suggest you save between $700,000 and $2 million for retirement, based on this crucial factor: location. Discover which states are cheaper and why!Studies suggest you save between $700,000 and $2 million for retirement, based on this crucial factor: location. Discover which states are cheaper and why!

The post Where Should You Retire? A Comprehensive Guide To Retirement Costs In All 50 States appeared first on Money Under 30.

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National Pizza Day – Fun Money Facts About Pizza

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| Personal Finance, Saving And Spending

Pizza is a perennial part of the American diet. We’re talking about pizza, but with a financial twist. How much do Americans spend on pizza, and how can you save money on pizza today and throughout the year?Pizza is a perennial part of the American diet. We’re talking about pizza, but with a financial twist. How much do Americans spend on pizza, and how can you save money on pizza today and throughout the year?

The post National Pizza Day – Fun Money Facts About Pizza appeared first on Money Under 30.

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I Used The YNAB Budgeting Software For A Year: Here’s What I Learned

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| Personal Finance, Saving And Spending

You Need a Budget (YNAB) is more than a software program; it’s a lifestyle. Whether your goal is to get out of debt or grow your savings accounts, YNAB can help.You Need a Budget (YNAB) is more than a software program; it’s a lifestyle. Whether your goal is to get out of debt or grow your savings accounts, YNAB can help.

The post I Used The YNAB Budgeting Software For A Year: Here’s What I Learned appeared first on Money Under 30.

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The Financial Benefits Of Paying Your Taxes Early

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| Personal Finance, Saving And Spending, Taxes

There are many financial benefits of paying your taxes early, and a few reasons why not doing it can come back to haunt you. But with tax software and e-filing, you can file and pay your taxes early in the season, then put the stress and panic behind you.There are many financial benefits of paying your taxes early, and a few reasons why not doing it can come back to haunt you. But with tax software and e-filing, you can file and pay your taxes early in the season, then put the stress and panic behind you.

The post The Financial Benefits Of Paying Your Taxes Early appeared first on Money Under 30.

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5 Tips For Throwing A Virtual Super Bowl Party That Your Friends Will Actually Want To Attend

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| Personal Finance, Saving And Spending

Can you throw a remote, budget-friendly Super Bowl party that’s actually fun? Absolutely; in fact, here are five ways to make 2021 the most memorable Super Bowl yet.Can you throw a remote, budget-friendly Super Bowl party that’s actually fun? Absolutely; in fact, here are five ways to make 2021 the most memorable Super Bowl yet.

The post 5 Tips For Throwing A Virtual Super Bowl Party That Your Friends Will Actually Want To Attend appeared first on Money Under 30.

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The Average Federal Income Tax Bill (And How To Reduce It)

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| Personal Finance, Saving And Spending, Taxes

It’s almost tax time again. Do you know how much the average American pays in federal taxes each year? Here’s the scoop and ways you may lower your bill.It’s almost tax time again. Do you know how much the average American pays in federal taxes each year? Here’s the scoop and ways you may lower your bill.

The post The Average Federal Income Tax Bill (And How To Reduce It) appeared first on Money Under 30.

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How Cosigning On a Student Loan Could Impact Your Finances

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| Saving And Spending, Student Loans
Parents cosigning on their daughter's student loan

While college students can get their own federal student loans without a cosigner in most cases, there are some situations where a cosigner is required. Federal Direct Parent PLUS loans, for example, can actually be taken out on behalf of dependents to help pay for higher education. Students can also apply for private student loans to pay for college. These loans tend to have high credit requirements that make it difficult for young people to qualify on their own.

But should you really cosign on student loans for your child? And should you cosign on any loans they can’t qualify for on their own? You can certainly consider it, but it helps to enter the situation with eyes wide open and understand all the pros and cons. 

The main advantage of cosigning is the fact that you’re helping your child (or dependent) pay for higher education when they may not be able to otherwise. However, it can also be a huge risk. Here’s everything you need to know before you sign on the dotted line.

You’re obligated to repay the debt no matter what

Whether you take on a Parent PLUS loan or you cosign with your child for a private student loan, the first thing you have to understand is that, no matter what, you’re obligated to pay that debt back. If your child stops making payments, you’ll be required to make them. If your child flat-out refuses to get a job and completely defaults on their responsibilities, you will need to repay that loan.

Cosigning on a student loan is similar to buying a house with someone or cosigning on a car loan. You’re both jointly responsible for repayment regardless of what the other person does. That can be a huge problem if your child doesn’t take their bills very seriously, but it may not be an issue if they treat their credit with care and stay on top of their bills.

Student loans are almost never discharged in bankruptcy

Another detail to understand is the fact that student loans are rarely ever discharged in bankruptcy. For the most part, they’ll stick around forever unless the borrower dies or you can prove you have some inescapable hardship. 

As a parent, you’re probably trying to save for retirement and reach other financial goals, so it’s important to understand that the student loans you cosign for will never go away until you pay them off — once and for all.

There’s no going back

When you cosign on a student loan, you can’t just change your mind and back out of the deal. Your child may be able to refinance their student loans in their name, but only if their credit score is good enough to qualify for student loan refinancing on their own. And if that was the case, they wouldn’t have needed a cosigner in the first place.

Your finances may be perfectly fine right now, but you should think through how they may be in five or 10 years. If you’re nearing retirement, you may not want to put yourself in a situation where you’ll be stuck paying off a child’s student loans. Plus, you never know how your health will be or the status of your career several years from now. Cosigning for student loans leaves you on the hook no matter what, and it’s hard to change that after the fact. 

Cosigning on a loan could affect your credit score

When you cosign on a student loan, you have to remember that you’re jointly accepting responsibility for the debt and any consequences that arise out of late payments or delinquency. So you should only cosign if you know your child or dependent is dedicated to paying their bills on time and avoiding default at all costs.

If you’re not paying attention, you could easily take a huge hit to your credit score without even knowing. Since payment history makes up 35 percent of your FICO score, it’s easy to see how even one late payment could cause major damage. Just think of what could happen if the student loans you cosigned for were paid late month after month. If you’re not also receiving a bill in the mail, you may not find out until the damage is already done.

The bottom line

There are situations where it can make sense to cosign on a student loan, but this decision should never be taken lightly. You may be helping your child earn their degree, but you’re taking a significant risk. (See also: Should You Co-Sign a Loan?)

You may want to assess the career field they plan to enter into and figure out how much they might earn upon graduation before you cosign. Some fields have plenty of promise right now, while others offer almost none, and you should know either way before you make any type of financial commitment. Maybe your college student could even spend time improving their credit score so they can qualify for student loans on their own. 

Cosigning on student loans should be a last resort for parents, not an easy fix for students who don’t take time to consider all their options. 

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Cosigning on a student loan can be a huge risk. Here’s everything you need to know how cosigning on your students college loan can impact your personal finances. | #finances #personalfinance #studentdebt

This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:
  • Should You Refinance Student Loans With a Balance Transfer Card?
  • 12 Easy Ways to Avoid Student Loan Debt
  • 4 Times Student Loan Refinancing Can Save You Big
  • Student Loan Debt in Collections? Try These 5 Steps
  • How to Dispute Mistakes On Your Credit Report


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