Category Archives: Money Management

Is this a good time to refinance my student loans?

This post is in collaboration with Juno.

US flag in foreground, two masked people walking in the background out of focus.

You’ve probably seen a lot of talk about student loans lately.

Interest rates are super low at the moment.

The pandemic has put federal student loans into forbearance. But what that means for your long-term student loan game varies based on your repayment plan.

You’ve heard murmurs that Biden has initiatives surrounding student loan forgiveness he’d like to see passed into law.

Student loans are a complex topic even in less overwhelming times. If you’re wondering if it’s smart to refinance your student loans right now due to the low interest rates, the answer can be, ‘Yes.’

But only for a small portion of people.

Why would I refinance my student loans?

The primary reason people consider refinancing is to secure a lower interest rate.

Not everyone will be able to secure a lower interest rate through refinancing. There are also several other criteria to consider before refinancing your student loans.

Should I refinance my federal student loans?

Most people probably shouldn’t refinance their federal student loans. When you refinance, a private bank is taking on the student loan that was previously handled by the Department of Education (ED). Refinancing may qualify some borrowers for a lower interest rate.

But at the same time, those borrowers lose access to advantageous federal programs.

Federal repayment plans

One of the biggest programs you’ll lose access to is income-driven repayment plans. Many borrowers qualify for one of the following three programs, depending on the type of federal student loan:

  • Revised Pay as You Earn (REPAYE) Plan. Caps your monthly payments at 10% of your disposable monthly income. Undergraduate loans considered paid-in-full after 20 years of payments. Graduate loans considered paid-in-full after 25 years of payments.
  • Pay as You Earn (PAYE) Plan. Caps your monthly payments at 10% of your disposable monthly income. You won’t qualify for PAYE if 10% of your disposable monthly income would be more than you would normally pay under a Standard Payment Plan. Loans considered paid-in-full after 20 years of payments.
  • Income-Based Repayment (IBR) Plan. Caps your monthly payments at 10% of your monthly income if you borrowed money on or after July 1, 2014, with loans considered paid-in-full after 20 years. Cap is 15% of your monthly income if you borrowed before July 1, 2014, with loans considered paid-in-full after 25 years.. You won’t qualify if the 10%-15% cap is more than what you’d pay under a Standard Payment Plan.

When you’re on an income-driven repayment plan, you may end up paying less over the course of your loan than what you’d pay over all with a private refinance — even if that refinance has a lower interest rate.

This is more likely to be true if you aren’t high-income.

Federal student loan forgiveness, cancellation & discharge.

You’ve likely heard of the Public Service Loan Forgiveness (PSLF) program. With this program, you make 120 qualifying payments while working for a qualified governmental or nonprofit employer. Then, you can apply to have any remaining debt forgiven.

While PSLF is the most recognized forgiveness program, there are several other programs for student loan cancellation or discharge, including:

  • Up to $17,500 of student loan forgiveness for eligible teachers.
  • Cancellation for specific Perkins loans.
  • Discharge of loans due to disability, school closure and in rare instances bankruptcy.

Refinancing your loan with a private lender means you’ll no longer have access to such programs.

Should I refinance my private student loans?

Maybe. Your private student loan already doesn’t come with access to advantageous federal repayment or forgiveness programs, so you have less to lose.

If you can qualify for a refinance with a lower interest rate, you’ll want to ensure that you’re still paying less over the course of your loan. Look out for these costs that can make the lower interest rate a moot point.

Application & origination fees.

When a company charges application and/or origination fees, your loan becomes more expensive. Depending on the size of these fees, they can eat into any savings you’re getting from the lower interest rate.

When comparing rates, make sure you’re looking at the APR rather than the interest rate. The APR accounts for the additional costs of origination fees combined with the interest rate.

Prepayment penalties.

Prepayment penalties prevent you from paying off your debt early. There are plenty of lenders that don’t charge prepayment penalties. Seek these lenders out.

Loan terms.

Ideally, when you refinance, you won’t be moving your final payoff date further into the future.

When you extend your loan term, you might secure a lower interest rate — or even a lower monthly payment — but end up paying more over the life of your loan simply because you’re paying that interest over a longer time period.

Fixed rates vs variable rates.

The lowest rates you’re offered on a refinance are likely to be variable. That means as the Fed raises interest rates, the rates on your loan will change, as well.

Fixed rates stay the same throughout the course of your loan.

We are currently in a low-interest environment. While the variable rates may be lower than the fixed rates, they have nowhere to go but up in the future.

Meanwhile, if you secure a fixed rate, it may be a little bit higher than the variable offer, but it will stay consistent throughout the course of your loan. When the Fed raises rates again, your loan interest will stay put.

There are very, very few people who successfully take advantage of variable-rate loans, and they usually have enough money on hand to pay off the loan before the term ends. Even then it can be a risky scenario to put yourself in.

You should almost always seek out a fixed-rate refinance.

Should I wait to refinance until Biden’s in office?

Any new policy will affect federal student loan borrowers more than private student loan borrowers.

The Biden Administration does have a comprehensive wishlist for higher ed, including federal student loan forgiveness. Some of the wishes include:

  • If you’re making $25,000/year or less, you wouldn’t owe any payments or interest on federal student loans.
  • Everyone else would pay 5% of their discretionary income above $25,000/year towards student loans. This is lower than the 10%-15% currently offered by income-driven repayment plans. Any remaining balance after 20 years of payments would be forgiven.
  • You would no longer have to pay taxes on the forgiven portion of your federal student loans.
  • Ten thousand dollars of loan forgiveness per year for public servants for up to five years.

However, turning all of these wishes into laws is going to be an uphill task. Even with Georgia securing the Senate for Biden’s party — even if every last Democrat approves a bill that would turn all the wishes into reality — with such a slim majority the Republicans still have an opportunity to filibuster.

For that reason, some have suggested that Biden should issue an executive order offering $50,000 in forgiveness to all student loan borrowers. On the campaign trail, Biden said he might do something of the sort, but the number he used was $10,000.

Whether or not any of these policies will come to fruition is anyone’s guess. Keep an eye on the news, but as of right now these ideas are not beyond the wishlist stage.

But you should wait out Coronavirus policy.

During the pandemic, federal student loans have been placed in administrative forbearance. That means that you do not have to make any payments until January 31, 2021.

During this period, your loans are not accumulating any interest.

If you are on a Standard Repayment Plan, you will still owe the same amount of money after the forbearance expires. Your payoff date remains the same, which means if you’re not making payments during this time, you could end up with higher monthly payments after the pandemic.

Those best served by this forbearance are those who are on income-driven repayment plans. You don’t have to make payments during this time, but all these pandemic months still count towards your 20 years of repayment even if you pay $0 during this time.

When forbearance expires, you’ll go back to your pre-pandemic payment. Essentially, from March 2020-January 2021, you got credit for payments you didn’t have to make. Zero-dollar payments during this time also count towards PSLF.

When the new administration takes over in a few days, it is possible that the new ED will extend the administrative forbearance. An extension in context of the pandemic would be easier to achieve.

UPDATE: Biden ordered an extension of the administrative forbearance on his first day in office. Once ED approves the order, the forbearance will extend through September 30, 2021.

Who shouldn’t refinance their student loans?

The lowest interest rates are offered to those with the best debt-to-income ratio and the highest credit scores. A high income certainly helps with both of these criteria.

If you’re carrying federal student loans and are not high-income or not working in public service, you may find that lower interest rates are not worth losing access to income-driven repayment plans or forgiveness programs.

Who should consider student loan refinancing?

If you have private student loans, a high income and a good credit score, refinancing may be an option for you.

It may also be an option if you are in the same circumstances with federal student loans — especially if you have loans from grad school. Just make sure you’re secure in your high-income job and that you truly wouldn’t benefit from the advantaged programs that come along with federal loans.

Whether you have federal or private loans, when you refinance you’ll want to make sure that application and/or origination fees are low to non-existent. You’ll also want to ensure that the loan term doesn’t negate the lower interest rates, which are preferably fixed.

How do I find the lowest interest rates on student loan refinancing?

To ensure you’re getting the lowest interest rate on your student loan refinance, you’ll want to do some comparison shopping. Remember to look beyond the interest rate. Make sure the loan is overall less expensive after accounting for loan term extensions and origination fees.

Typically when you apply for a loan, you don’t get an opportunity to negotiate with the lender. They tell you the rates and terms you qualify for, and that’s that.

But there is another option. Companies like Juno negotiate for borrowers en masse, giving them more leverage and allowing you to secure better loan terms. To date, Juno has helped its members save over $26M in interest and fees.

Using Juno to secure lower rates.

Joining Juno is free. You’ll submit some basic personal information, including an estimated credit score and income. These numbers don’t have to be spot on, and Juno will not do a credit check. But you do want them to be relatively accurate.

After you sign up, the company gets to work. They present a large group of student loan borrowers — including you — to several banks and online lenders. Then they have those lenders compete over your collective business. The lender that offers the lowest bid is the one Juno picks.

They then come back to you with the rates and terms they were able to secure for your group in their negotiations. These negotiations happen once-per-year in the Spring.

Juno only works with a handful of lenders. The lowest fixed APR reported by Juno is extremely competitive at 2.25%. Your offered rate could be higher depending on things like income and credit score. Check the APR and terms offered by Juno against other refinance offers from outside lenders to ensure thorough comparison shopping.

You can then choose to take or leave the refinance offer from Juno. If you choose to take it, you’ll use a link sent by Juno to fill out your application directly with the lender.

The lender will do a hard pull on your credit to ensure you qualify for the negotiated rate. This is why it was so important to give an accurate credit score earlier on in the process.

As long as you meet the parameters for the negotiated rate, you’ll be ready to sign your documents directly with the lender. Juno does follow up with you to ensure you’re getting everything the lender promised in negotiations.

Why use Juno?

There are lots of student loan refinancing options. Juno is worth looking at because:

  • They may be able to negotiate a lower interest rate than you’d qualify for on your own.
  • They attempt to secure other benefits you normally wouldn’t qualify for with a private loan, such as loan discharge in case of death or disability.
  • Signing up for Juno is free and risk-free. They don’t run a hard or soft credit pull. And if you aren’t in love with the loan terms they come back with, you are under no obligation to accept.

What Neuroscience Says About Making Financial Decisions

This post is in collaboration with BetterHelp.

Picture of a hard, plastic brain in a blue room. The brain is lit up mostly red with one section near the back lit up green.

Over the past several decades, our knowledge of neuroscience has skyrocketed. With it, our understanding of mental health has also expanded

Understanding how our brain works physically has major implications in the field of psychology. Understanding how our brain is physically wired can help us rewire mental workarounds. It can also tell us what medication may help alleviate the physical chemistry going on in our brains when necessary.

Because so much of our financial behaviors are based on our psychology and past experiences, this increased knowledge in the field of neuroscience can also help us make better decisions with our money.

Neuroscience and financial decision making

A 2017 study sponsored by Northwestern Mutual measured neural activity during the decision-making process. Some of the study participants were given assistance as they were making financial decisions. Others were left to make those decisions on their own.

Those that did not receive assistance experienced:

  • 20% more stress and difficulty when making a decision.
  • 28% less understanding of their financial decisions.
  • 21% less relaxed when making those financial decisions.

The study even included brain scans, visually showing the difference in brain functioning between the two groups.

The neuroscience shows that simply having someone to guide you through the process lessens your anxiety levels when making financial decisions. It helps you understand those decisions better, and can thus result in better results.

Ways to get assistance with financial decision making

How does one get this assistance that the neuroscience showed to be so important?

There are several ways to seek financial assistance. The best one for you will depend on your budget and the specific financial decision you’re trying to make.

Financial advisors and coaches

If you have money to spend on professional help, you can look for people with letters after their name.

For example, if you want help filing your taxes, you could look for a Certified Public Accountant (CPA) or enrolled agent (EA) with the IRS.

If you’re planning for retirement and have a complex array of financial products, you may want to find a Certified Financial Planner (CFP) or Certified Financial Advisor (CFA).

If you just need help getting your day-to-day money on track and want one-on-one attention, you might look for a coach who has their Certified Financial Education Instructor (CFEI) or Accredited Financial Counselor (AFC) certification.

Purchasing a home

If you participate in a first-time homebuyer program, you will often be required to complete a first-time homebuyer education course.

This may seem like just another hoop to jump through. But it’s often a positive thing for you as a buyer. You get access to that assistance that neuroscience has shown to be so important. And you get it through a unique process you’re only likely to go through a couple times in your life.

Day-to-day finances

You might need specific help with a specific financial problem. But if you just need general money advice, turning to financial influencers you trust can be a good way to get the support you need.

For example, when Tiffany Aliche launched the first Live Richer Challenge, she did so using her background in early childhood education. She gives participants one thing to do per day. A bite-sized task instead of a list of overwhelming decisions.

By the time you get to the end of the initial course, you have a budget, a finger on the pulse of your spending habits, and an idea of what it will take to get out of debt.

The Northwestern study showed that this tactic achieves the goal of alleviating stress. Your brain doesn’t have to worry or get overwhelmed with big decisions. It can focus on the one task in front of it, increasing your motivation as you successfully complete each task, building momentum and confidence along the way.

What to Do When You Can’t Bring in An Income

This post is in collaboration with BetterHelp.

A few weeks ago, The Plutus Awards asked this question on Twitter:

What do you do when difficulties enter your life and you can no longer bring in any income?

It’s a tough one to answer, partially because there really aren’t any great answers.

I mean, the best answer is to have a huge emergency fund before disaster strikes. But you never know when disaster will strike, causing you to lose your ability to bring in an income.

And perpetually maintaining an emergency fund that would cover 12 months+ of expenses is often, though not always, a mathematically unobtainable goal for average Americans.

What to do when you have no income and no savings.

I thought about the times in my life when traditional income wasn’t obtainable, or my ability to work was diminished so dramatically that my income was insufficient to my needs. More than once, an emergency fund saved me.

But also more than once, I’ve been caught with empty pockets.

Today, I’ll go through the things that I do when I’ve been caught with empty pockets. Because once disaster strikes, it’s too late to build that emergency fund.

And when you’re sitting nine months into a pandemic where money has been scarce or dangerous to obtain, you can’t build savings with income you don’t have.

Here are the basic six steps I identified in my past successful behavior in the midst of a financial disaster.

Forgive yourself.

Or at least attempt to.

Because here’s the thing about disasters: More often than not, they’re brought on by something outside of your control.

As Americans, we live in a culture where unadulterated individualism is a badge of honor. If anything is outside of our control, it can threaten our very sense of identity and self-worth. So instead of recognizing those things outside of our control, we internalize blame.

I should have saved more.

This must have been caused by my own irresponsibility. I could have done things differently in retrospect, so that must mean I am the one responsible for this period of my own suffering.

If I can’t bring in an income, what good am I to anybody?

These are not helpful thoughts. Some of them are blatantly inaccurate and stem from extremely problematic norms we’ve inherited from our culture.

We often blame ourselves so we don’t have to acknowledge our own lack of control in the grand scheme of things. We feel safer berating ourselves than recognizing that in life, there will be periods of time where we cannot get by without outside help.

That help may be emotional, spiritual, physical, or — yes — even monetary.

If we blame ourselves too much, we can actually pull away when help is offered and available. We’ve convinced ourselves we’re somehow undeserving.

With a little work, we can change those thoughts into more positive, helpful ones. This work is especially effective when go through it with a therapist.

I have never completed any of the following steps without first forgiving myself at some level.

I haven’t done it without recognizing that I’ve done the best I can with the resources I had at the time, and that there are, in fact, things in my financial life outside of my control as an individual. Whether I like it or not.

Assess resources.

After I’ve worked on forgiving myself, I start to make a plan on how to get by and hopefully make things better over the long-term.

The first step on that journey is assessing resources. There are three resources I target:

  • Resources can definitely be money. You might not have a 12-month emergency fund, but every penny you have socked away into savings can make a difference when your bank balance is low.
  • I also like to look at resources that aren’t money, but could be turned into cash with minimal effort. One way to do this is selling items around your home that don’t carry sentimental value.
  • Another huge resource is time. Sometimes, when you’re not able to bring in an income, the same thing limiting your income may be limiting your time. If you’re lucky and it’s not restricting your time, you might find that while you can’t secure a full-time income right now, you can find ways to make money on the side to help make ends meet.

Assess government assistance.

Do not let the judgement of others deter you from accessing the resources that can help you get by. If this second stimulus package ever gets signed, programs you can look to may include but are not limited to:

  • Expanded unemployment benefits.
  • Potentially food stamps (SNAP benefits) even if you’re on unemployment.
  • A second round of PPP.
  • Potential rent assistance depending on your state and/or locality.

Look for grants.

In times of distress, I also look to grants. For example, when Coronavirus hit, I was awarded a grant from PEN America. It helped me smooth over bumps as I got used to this new ‘normal’ and attempted to find new ways to function in my career.

Honestly, I haven’t seen as many grants available as the pandemic wears on. If you can find them, apply, though don’t expect the search to be easy. Also bear in mind that if a grant is easy to find, you may have a lot more competition than a grant you have to dig for.

There are grants for other life disasters outside of the pandemic.

For example, grants for recovery from domestic violence are out there, though they often come with a requirement that you’ve been living apart from your abuser for a certain period of time.

While in an ideal world, Medicaid and/or Medicare would cover all necessary equipment related to a disability in all fifty states, that’s not the reality we live in. There are nonprofits out there that attempt to fill the gaps by issuing grants for financial emergencies related to disability or medical need.

Whatever is impacting your ability to bring in an income, search for grants related to that topic. You can also look for grants tailored to specific expenses and qualify based on your income level.

Make a plan to get by.

Now I know all the resources available to me, whether they’re resources I own, resources from the government, or grants from outside organizations.

I have all the information I need to make a plan.

The first thing I do is prioritize my expenses. The things I can’t live without, like food and shelter. Any resources I have that can cover these things for the next twelve months, like my own cash, rental assistance or SNAP benefits, are applied first. Without food and shelter, everything else gets harder, so these expenses must be covered first.

Then I’ll eliminate any frivolous expenses, like paid subscriptions to services I’m not actually using or don’t actually need. During the pandemic, it’s probably been financially easy to cut out expenses for things like nights out with friends or activities for the children. Even though it’s been emotionally difficult, it’s an emotionally-difficult decision a lot of us would have made anyways due to the lethal nature of this easy-to-spread virus.

This sometimes-necessary form of disaster budgeting doesn’t leave you feeling super great or empowered at the end.

At least it doesn’t for me.

It usually shows that things are going to be financially difficult to impossible in the near future.

Which is why I go on to complete one final step.

Make a plan to come out stronger on the other side.

I can do hard things for set periods of time.

But it’s harder to do those hard things if I don’t feel like there’s an end goal. A light at the end of the tunnel. A way out.

So after I make my disaster budget, I also make a plan to come out stronger on the other side.

Here are some examples of plans you might make to do just that.

Go back to school.

At one period in my life, I had a choice: I could keep working at my less-than-$10/hr job and continue scraping by forever in the name of pride and individual responsibility, or I could access government benefits and go back to school. Because of other circumstances in my life at the time, I could not do both.

The latter would require both humility and a shift in how I viewed myself in the world. But it would lead to a higher income and more stability for my family long-term.

Reassess your business goals.

During this period where you’ve lost income, you might have to move differently in your business.

Did you lose a W-2 job that you don’t see coming back any time soon? You might consider building a freelancing business.

If you have a business, you might start focusing the limited time you have to work on behind-the-scenes efforts. This can prepare you for a successful relaunch when the disaster is over. It’s a shift from the day-to-day grind that used to provide an income, but sets you up for future success.

Get a clean slate.

If your money situation is in enough peril and you’re carrying debt, erasing or restructuring your debt may help you get to a financially-stable place at a quicker pace. Pursuing bankruptcy is a nuanced decision that isn’t right for everyone.

Some of your money — such as savings and investments held in certain retirement accounts — is protected from bankruptcy proceedings.

But there are definitely negative effects like a diminishing hit to your credit report over the next seven years and repossession of bank-owned assets. If you’re going to be behind on payments for the next seven years, anyways, it might be an option you want to research further. Just be sure to be thorough so you understand all the consequences.

Will this work?

Honestly, even the best-laid plans rarely turn out exactly the way I expect them to when a disaster hits. But by pursuing them, I’ve been able to open up future opportunities I didn’t even see coming.

Having a long-term plan to level up — even when I can’t immediately achieve — keeps me moving forward. Even when everything going on around me makes me feel frozen in place.

Favorite Money Journals for 2021

This post is in collaboration with Etsy. Much of Etsy is marked 60% off for Cyber Week Sales. Some of the below products are included in the sale.

Red text reading "Favorite 2021 Money Journals" being circled in black. Below, a pink notebook with a Black woman in business attire and sunglasses holding stacks of cash. Text on notebookos reads '2021 The Year of the Comeup'

We’ve all learned a lot about ourselves this year.

If one of the things you’ve learned is that your money’s a mess, don’t worry.

You’re not alone.

There are lots of tools out there to help you get back on track financially. Today, we’re going to look at money journals. Whether you want to rewrite your mental narrative around finances or track your debt payoff journey, there’s a money journal option for you.

Given tactfully to the right person, these money journals can also make great gifts or stocking stuffers.

Money Journals to Unravel Bad Financial Habits

We like to think of personal finance as neat little columns full of numbers. Numbers we’re fully in control of.

But in reality? The stories we tell ourselves about money are far more likely to dictate our behaviors than the numbers. Some of these stories we might be totally aware of. Others, we might have subconsciously absorbed from our parents, culture or personal interactions with the world around us.

Understanding these stories can help you change your behavior. Eradicate bad habits. Build healthy ones.

Here are some money journals that can help you unravel your money stories.

Year of the Come Up Money Journal

Text reads "2021 The Year of the Come Up". Below text is featured a cartoon image of a Black woman, wearing business attire and sunglasses, holding stacks of cash.

I love this energy.  This journal from CopperandBrassPaper has amazing cover art and is a blank notebook inside.

That’s not a bad thing. Sometimes money feelings need space to work themselves out. In fact, a blank notebook is the perfect thing to pair with the work of Eugenié George.

The Money Journal Financial Planner

Two copies of 'The Money Journal', one spiral, a darker cover is bound. Sitting on a white background next to a green plant.

This money journal from SistersforFI goes into things like mindset and money narratives. If you are pursuing financial independence — particularly in the vein of FIRE (financial independence/retire early) culture — this journal may be a good match for you.

On top of working through your mindset, the journal includes a basic budgeting page and a page full of (mostly) money challenges.

90-Day Guided Money Journey

Picture of printed pages of a money journal lying on a marble countertop.

This 90-Day Money Journal from SandraKStewart guides you through the process of reframing negative money thoughts into positive ones. At the end of every day, you’re asked to write out a takeaway. The program encourages not just contemplation, but action.

This is a digital download, meant to be printed after download.

Money Journals for Type A Personalities

Want a money journal that’s more oriented toward the hard numbers?

There are plenty. These journals — or budget planners — will help you get your money together on a day-to-day basis.

Day One Money Journal

Journal, pen and washi tape on a pink and yellow background. Notebook read, "One day or day one you decide" on the front.

Here’s another 90-day money journal. This one with a different orientation.

From FrugalCottageDesigns, the Day One Money Journal acts as a budget planner. It covers a wide array of categories for three months:

  • Goals
  • Debt payoff
  • Weekly expenses
  • Sinking funds
  • Investments
  • No-spend days
  • Space to track extra income

Goodnotes Compatible Financial Planner

Image of printed pages from a downloadable budget planner. This budget planner from shayhayashidigital covers similar territory, but it allows you to do so over the course of twelve months. Debt, savings, expense tracking and sinking funds are all covered. There’s also a page to plan not just your monthly budget, but your annual budget, too.

This is another one you’ll need to print as it’s a digital download. You could also use it with a program like Goodnotes or Notability.

In Case of Emergency Binder

Forms where you can record financial information overlaid with a blue cover reading 'In Case of Emergency Binder'If you’re a parent, your financial concerns have probably been heavier in 2020 than other years. Keeping your job and income is a heavy burden.

But let’s be real: We’ve also been facing the omnipresent question of death. How to keep our loved ones alive, yes. But also — what would happen if we caught this thing ourselves?

This emergency binder from SmartMoneyMamas tackles the hard questions. What would happen to your money if you died? Would anyone know the right account numbers? Would they know how to divvy up your cash according to your will? What would you want your kids to know, and what would you want their new guardians to know about them?

This is a digital download. You can choose to fill it out electronically.

Yes, Etsy also has adorable everything for children.

Money Journals for Visual Learners

If you’re more visually-motivated, you might want to check out these alternatives. They’re like money journals, except you’ll track your progress with charts and graphs rather than words and numbers.

Saving Goal Coloring Page

Origami birds flying out of a cage. Some are partially colored. Text reads 'Savings Goal Coloring Book'

This savings goal coloring page from BitchesGetRiches is built around the idea that you are 42% more likely to reach your goal if it’s written down. And if your goal is beautiful to look at, you’re more likely to stick with it.

The printable coloring page comes along with a calculator. It will help you figure out how much money each fragment of the bird is worth. If each section equals $X, you get to color one section in every time you save $X towards your goal. When you’ve colored in all the birds, you’ve reached your goal.

Debt Snowball Tracker

Debt snowball tracker visual tracking sheet on a white table.Part of the reason the debt snowball method is such an effective way to pay off debt is because your brain logs those little wins as early victories.

This debt snowball tracker from FrugasaurusVault reinforces those wins visually. With this printable, you’ll be able to draw your debts — from smallest to largest — by breaking them down into 5x5mm chunks.

Similar to the savings birds, each time you pay off $X,  you’ll get to color in one box. As you see your boxes fill, you’ll be able to visually track your debt payoff.


How Your ACE Score Affects Your Money Habits

This feature by Eugenié George is the latest in the Intersectional Money series. It is not intended to be a substitute for professional medical advice, diagnosis, or treatment. Always seek your physician’s advice or another qualified health provider with any questions regarding a medical condition. 

Economic inequity takes on many forms. One of the forms it takes is through trauma. This article will discuss Adverse Childhood Experiences and how they can affect Women of Color’s economic inequity. We will also cover steps to address the past with the present. 

Money Triggers

Imagine grocery shopping one sunny afternoon. You have all the right ingredients in your grocery cart, and you’re ready to purchase. 

But you have a taste for Honeycrisp apples. 

You look at the price tag and see that the apples are $3.49 a pound. That’s, like, a dollar more than any of the other apples! You have money to purchase the product, but you experience a weird uneasy feeling in your gut. Your brain is running several ideas: 

Girl, don’t waste your money on that! You can get cheaper apples at Kroger.

But on the other hand, apples are healthy, and you know what they say about apples and doctors.

You don’t have any money at all. 

If I had a man (or woman) who supported me, I could buy apples. 

I bet White people don’t have this problem. 

We can’t afford that because papa is looking for a new job. 

Now in the 35,000 thoughts that we run through our brain, which thought was the weirdest?

It was probably, “We can’t afford that because papa is looking for a new job.” 

Why was that thought in your brain, you might ask?  It’s because even though we are deciding on an action in the present, our minds can be triggered by Financial PTSD

Our money triggers can help us.

We experience money triggers from our traumatic experiences in the past. In many ways, these triggers help us avoid a lot of terrible situations. 

When I was little, my family told me never to walk in a check-cashing business because many of them engage in predatory lending. 

And I’m glad that they did because, according to the National Associates of Consumer Advocates, payday lending could ruin your credit and charge you five times more than cashing your check at a bank. 

This warning was given to be because my family did go to the check-cashing place and learned from their experience. 

Our money triggers can hurt us.

On the other hand, our money triggers can hurt us. They can stop us from getting the things we want. 

It can be as little as not purchasing Honeycrisp Apples — even though you can afford them. It could manifest as accepting less pay than you’re worth, even though you’ve attempted to negotiate your pay. 

Trauma and Money Habits

On a personal level, the most challenging thing as a writer is to convey to readers the urgency around money and trauma. Using trauma as a reflective-interactive tool can help Women of Color process their cultural beliefs around gender and race. 

As I was looking for more scientific research to support this case, I stumbled upon a TED Talk by Dr. Nadine Harris Burke entitled Adverse Childhood Experiences.  

What is Adverse Childhood Experiences (ACES)? 

Adverse Childhood Experiences (ACEs) are the traumatic events that occur during childhood between the ages of 0-17 years. Some examples of these traumatic events are: 

  • Experiencing sexual, physical or emotional abuse — including neglect. 
  • Witnessing alcohol and drug abuse.
  • Divorce or family separation.

ACE scores are formulated on a one to four scale. A score of one means you’ve experienced one form of childhood abuse. Four or more means you had many hardships to overcome. 

It’s also important to know that ACE scores don’t talk about racism. They don’t talk about coping strategies or how someone overcame adversity. 

So if someone has a high ACE score, they can also be dealing with environmental trauma, such as gender and racial inequity.

The Center for Disease Control and Kaiser Permanente investigated childhood abuse and how childhood abuse and neglect can impact adults. It turns out that most adults have experienced trauma in their life. 

According to the Center for Youth Wellness, about two-thirds of study participants had experienced at least one ACE category. The higher your ACE score, the higher the likelihood of developing long-term health problems like heart disease or cancer. 

Could ACE Scores be the missing link to personal finance?

When I stumbled upon this research, I kept asking my personal finance friends if they had heard of ACEs, and many of them scratched their heads in disbelief. This research meant that we could find out adults’ long-term health habits if we learned about their trauma. 

It also meant that I could find the relationship between ACE scores and socioeconomic patterns.

A 2014 study explained that the monetary hardship on women who had an ACE Score of two or more had a history of economic adversity. A UK study found out that women with an ACE score of two or more have a higher risk of premature death than women with lower scores. Many of these women had premature deaths from lack of health planning and budget prioritizing.

So what does this mean? 

It means that our trauma can have an economic impact that can affect our future lives. When we experience trauma as children, it can create barriers around future health and opportunity if not addressed early. 

The pathways associated with ACE scores could increase the likelihood of adopting harmful health behavior, impacting one’s ability to achieve upward mobility (i.e., education, employment, and income.) It also means that our ACE score can create an awareness of how vital social connections are to our overall health. 

Because we know that most Americans have experienced trauma, we must start the conversation around our behavior and emotions. 

My Family’s ACE Story

In my book, Our Money Stories, I go through a journey of understanding my ACE score through my father’s eyes. It occurred to me that my father had a high ACE score. Still, he managed not to endure all the adverse outcomes associated with high ACE scores: Violent behavior, incarceration, and premature death. 

But my dad did have one addiction that I was able to identify: His soda addiction. 

Coping with one’s emotion through addiction is a common practice. According to reporting done by Tulsa World, soda and cigarettes help people soothe and regulate emotions

The larger problem is that many adults with high ACE scores didn’t develop the ability to soothe and control emotions when they are stressed.  So as adults, they create ways to relieve their feelings either through food, soda, or cigarettes. 

On the economic side, the cost of any addiction is expensive AF. When I sat down with my father, it occurred to me that my dad spent money on soda every day. 

How ACE Scores affect your spending 

Prior to 2016, money was the number one cause of stress in America. The American Psychological Association reported that 72% of Americans stressed out about money at least some time during the previous month. 

ACE scores are the aspirin to your money headache. Why is this? 

It’s because the way we handle stress stems from our childhood. The adversity that we experience as a child — like divorce or neglect — can alter how our body reacts to all situations. In a recent discovery, ACEs Too High explained that our ACE scores could create long-term changes in our bodies without us even knowing it. 

Let’s go back to our example earlier in the article:

If I had a man (or woman) who supported me, I could buy apples. 

We can’t afford that because papa is looking for a new job. 

These ideas may stem from ACEs. 

Thought The potential link to ACEs
We can’t afford that because papa is looking for a new job. Because the family dealt with financial insecurity, the child feels neglected.
If I had a man (or woman) who supported me, I could buy apples. You might be a child from a divorce who fixates on ‘what-ifs’.

Our past can unconsciously help us make decisions. Paying attention to our thoughts and behavior patterns with money can help us create reflective money habits. Sometimes we have to dig a little deeper to find what’s going on.

3 Action Steps to Understand Your ACE Score 

Take the ACE Test 

Let’s be real: Taking the plunge of learning your ACE score can be a traumatic experience. 

Sometimes many of us block our traumatic experiences. They can be overwhelming. If you are comfortable taking the ACE test, you can do so here. You can also take it with a therapist or a specialist. 

Write in a Journal

One of the most healing forms of understanding one’s trauma is by writing it on paper. Take out a piece of paper and start writing about your past. Hannah Brame, author of The Year of You wrote a series of money journal prompts, and we’ve found the best ones to get your ACE brain activated:  

How do you talk about money with friends and family? (Do you?)

What does it mean to you to have “not enough” money

What does it mean to you to have “too much” money?

Write a Money Brain Dump 

A quick money stress reliever is creating a money brain dump list. 

A money brain dump list is the act of setting a timer and writing down all of the things that are bothering you. You can make your brain dump money-specific and write out a list of financial stressors. 

Getting your fears on paper can relieve your current money stress. It can also help you make a mental note of why you are stressed, so you can work through it and process your stress in new, healthier ways. 

Eugenié uses her 10+ years’ experience in tech, education, and finances to lead high- achieving individuals to understand their money habits. She works as a financial wellness strategist and is the author of Our Money Stories.

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