If nothing else, the pandemic has taught us that emergency savings is more important than ever. Financial experts say that you should have three to six months’ worth of expenses saved in case of emergency. It is also recommended you save 10% of your monthly income to build savings. Those are lofty goals, so start by saving a little at a time and make it a habit! Set a savings goal and utilize tools to help you reach it. Check out Nerd Wallet’s Savings Calculator, which will also give you recommendations for high yield savings accounts!

2. Budget and Spending Plans

Building good budgeting skills and spending habits is key to financial success - and peace of mind. It is difficult to take control of your finances and save money if you don’t understand how much you have and where it is going. Identify and categorize all of your expenses, and track them in relation to your income. Maybe this means maintaining a spreadsheet, a cash envelope system, or using an online tool such as Mint.com. Mint.com is both a website and an app that will help you track your spending, build and adjust your budget, and set specific savings goals.

There are many types of insurance; car, renters, health, and life to name a few. It is important to know how insurance works and why it matters. Insurance is one of those things you hope you’ll never need to use, but if you do, will be glad you have. It protects your body, your car, and your living space, but there are a lot of options and things to consider, including the amount of coverage and monthly cost of premiums. Get a better understanding of insurance with Next Gen Personal Finance’s Bummer game.

Your rate of pay multiplied by your hours worked isn’t what lands in your bank account. Take a close look at your pay stub (Pro-tip: save your paystubs and keep track of your hours in case there is a discrepancy with your employer). You have your gross pay, or your total salary, and your net pay. The net pay is what you take home (or have deposited in your bank account) after some things are subtracted from your gross pay. You’ll notice things like taxes, insurance, and in some case, other withholdings. This article will help you understand your pay stub- and you can sign up for more in-depth content, calculators, and courses through iGrad®.

5. Increasing Your Income

Do you have a side hustle? If not, a great way to bolster savings and have more to spend on things you need and want is to generate more income. Think about what you love to do and figure out how to make money doing it! Are you crafty? Sell your crafts on Etsy. Don’t mind a trip to the grocery store? Sign up to be a shopper for InstaCart. Have a bunch of stuff you need to get rid of? List it on Facebook Marketplace! Visit this list of 40 Side Hustles to get some inspiration for generating more income.

For additional helpful information and resources, find previous issues of 5 on the 5th on our website.

Mary Dyer, Financial Education Officer

Maria MacDougal, College Access Counselor

Floreka Malual, College Planning Advisor

Nikki Vachon, College Access Counselor

Jessica Whittier, College Access Counselor

Mila Tappan, College Access and Outreach Manager