CPA Profession Flexes Its Financial Muscles This April

April is Financial Literacy Month! This annual event is centered on improving Americans’ understanding of financial principles and practices. During this time every year, the AICPA and state CPA societies bolster financial literacy efforts with added events and resources.
 
Even with the craziness of tax season, it is amazing to see the dedication of CPAs across the country. Here is just a sampling of the various financial literacy events taking place this month.
 
The Texas Society of CPAs is encouraging families to participate in their 30 Days of Personal Finance. They’ve posted 30 tips for each day of the month, ranging from creative savings ideas to budgeting tips.
 
The New Mexico Society of CPAs will speak on financial literacy at an Albuquerque middle school on April 22. Three CPA volunteers and a NMSCPA staff member presented at the event last year, and it was so successful for the school that they have decided to make it an annual event! You can see pictures from last year’s event on their Facebook page. This year they will be giving away Feed the Pig and 360 promotional materials to kids and parents, in addition to raffling off copies of Save Wisely, Spend Happily; a copy of the book is also being donated to the school’s library.
 

Fitness Showdown: Financial v. Physical

It seems like every time I turn on the TV or open a magazine, there’s some new fitness miracle, whether it’s equipment, classes, cleanses or clothing. And, of course, they all come with a price, usually not within the typical young adult budget. While fitness is important for people in all age groups, it seems to be taking on a whole new import with Generations X and Y. Gym memberships or fitness classes are now a staple in the standard budget, and eating organic seems like a no-brainer trade-off for the higher cost. All of this is well and good from a health standpoint, and in the long run will ideally lead to fewer health care costs down the road, but there’s something big missing from the average American’s budget: saving.

I’ve been saving since before I knew what the term saving meant; I had some wonderful relatives who knew how much I would appreciate savings bonds down the road. When I started working at the age of 16, the saving continued, with me socking away every paycheck apart from the money I needed for gas. Even when I started my first job out of college, I still found saving easy, and didn’t understand why people just didn’t “get it.”

I Love You, I Spend a Lot [INFOGRAPHIC]

It seems you can’t turn on the news without hearing at least one story about money. Saving, spending, debt, budgeting…the topic of finances is everywhere, except, however, in the homes of consumers. According to a recent Harris Interactive survey conducted on behalf of the AICPA to promote the new consumer book Save Wisely, Spend Happily, only 14% of Americans identify financial problems as something they would feel comfortable discussing. What’s more, 28% say they have no one to ask for financial advice. When it comes to family and finances, shouldn’t loved ones be allies?

Back to Saving

Over the past few weeks, kids across the country packed their backpacks and headed off to start the new school year. I still remember the mix of excitement and apprehension I felt as I laced up my new sneakers for the first day—they were the “special” annual back-to-school purchase in our family. The preparation for school may vary between households, but it can be agreed that every parent wants to set their children up to succeed. While there are many factors that may be out of a
parent’s control, teaching kids good financial habits, like saving, can give them the best opportunity for a financially stable future.

To help kick off the school year, Feed the Pig hosted a live Q&A on Kids and Money, with National CPA Financial Literacy Commission members Kelley Long, CPA and Clare Levison, CPA. Here are a few of the top questions and answers.

Books, Exams and What I Owe

Heading off to college can be one of the most exciting times in a person’s life, especially if it’s your first time living away from home. I still remember the thrill of living with no parents for the first time. That thrill soon wore off when it was time to pay the bills—between books, groceries and my tuition, I didn’t understand how I was supposed to handle it all on my own. Fortunately, student loans showed up to save the day, sort of.

Although student loans made school financially possible, the reality of the debt I was accruing was completely off my radar while I was in school, as it is for many college students. Even with the post-graduation repayment grace period it was still difficult to pull together my loan payments the first few years; I was even one of the lucky ones who found a job the summer after graduation. In today’s economy, and with today’s unemployment rates, it’s a stretch to think that all graduates will find jobs within six months, let alone be on their feet enough to begin repaying their debt. Now, millions of college graduates may see their payments jump.

Tax Season: An Opportunity for Financial Literacy Lessons

The end of tax season is fast approaching, and CPAs everywhere are no doubt looking forward to the end of their busiest time of the year. Although I bashfully admit that my returns still have yet to be filed, I see this time of year as a prime opportunity for me to take a good look at my finances. Sure I keep the typical year-round budget, and do my best keep my finances in check, but there are always places for improvement. Since joining team AICPA, I have realized, more than ever, that year-round tax planning can truly help prepare you for life changes, while staying on track to achieve financial goals.