It’s Financial Literacy Awareness Month!
Happy Easter to you all! Even with the beautiful weather in Chicago, this Easter still doesn’t feel the same. I personally think this feeling is associated with Covid-19 restrictions/habits which have caused us to keep gatherings smaller than normal. Being birthed into a family of nine, that’s difficult to cope with. Either way, let’s get into April’s Post while I sip my wine. Financial Literacy Month is finally here!
Financial Literacy Month
What is Financial Literacy Month anyway? Back in 2004, the Senate passed a resolution to recognize April as Financial Literacy Month. It’s a national campaign organized by The Jump$tart Coalition to raise awareness about financial literacy and promote financial education. This upcoming Saturday, April 10th is the start of Money Smart Week. Money Smart Week 2021 runs from Saturday, April 10 through Saturday, April 17, 2021. Each day discusses a different topic. All events are 100% virtual this year and features one live online event each day, along with a host of financial literacy resources. I almost forgot to mention that every event is FREE! Try to attend at least one session that will be most beneficial to you.
How rising interest rates affect your money
With lots of talk in the news about interest rates, I thought it would be great to understand how they affect us. Have you ever wondered who’s in charge of interest rate moves in the US? It’s the Fed aka The Federal Reserve. In order to make sure the US economy stays on track, the federal funds rate is adjusted. This rate is what banks charge each other to borrow money for short amounts of time. That rate doesn’t affect most consumers directly, but it influences the prime rate which is what the banks charge us consumers. When the federal funds rate changes, the prime rate follows. The prime rate is referenced for mortgages, loans, credit cards, bank deposits, etc.
Consumers are directly affected by changes in the prime rate. If it increases, that means we’ll be paying more interest on our credit cards and loans. It also affects how much interest is received from savings accounts or earnings in investment portfolios. If rates are low, our money can go further meaning it’s cheaper to borrow.
In the grand scheme of things, the movement of interest rates are indicators for how our economy is doing. If The Fed raises rates, it’s normally an indication that the economy is doing well. The Fed lowers rates to help boost the economy when it’s not doing too well. We’re living in the perfect example of our economy not doing great. COVID-19 was a horrible hit to the economy so interest rates are near zero.
Jim Crow 2.0 VS. The For the People Act
As we all know, last year’s presidential election was won by The Democrats. Georgia played a HUGE role in that win thanks to my girl Stacey Abrams. Traditionally a red state, it is now becoming blue which has upset some state officials. New voting restrictions were signed into law by Republican Gov. Brian Kemp which include: strict voter identification requirements for absentee ballots, and it will also empower state officials to take control of election boards. In other words, Georgia will be controlled by the Government instead of the popular vote.
This new legislation is being called Jim Crow 2.0 because the tactics used are very similar to methods from the 50s and 60s where legislation was put in place to make it harder for people of color to vote. There may be light at the end of the tunnel due to HR1 aka The For the People Act. This act seeks to expand Americans' access to the ballot box, reduce the influence of dark money in politics, strengthen ethics rules for public servants, and implement other anti-corruption measures for the purpose of fortifying our democracy. This act passed in the house last month and will hit the Senate floor very soon.
Tax Extension
If you haven’t filed your taxes yet, no sweat. The filing deadline for individuals was extended from April 15th to May 17, 2021. However, if there are any tax payments that need to be made, they are still due by April 15th. According to irs.gov, “Notice 2021-21, does not alter the April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn't subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.”
Thanks for reading! Until next time, be sure to subscribe!