financial wellness
Informal safety nets help many Americans with expenses – people at all income levels benefit from this ‘financial interdependence’
Many Americans engage in informal financial support networks, reflecting cultural traditions and economic needs, which are becoming increasingly vital amid rising living costs and economic pressures.
Jeffrey Anvari-Clark, University of North Dakota
About 1 in 5 American adults regularly provide unpaid care or financial assistance to their adult relatives or friends. And about 1 in 7 young adults between the ages of 25 and 34 live with their parents.
But the true extent of support among Americans is deeper and broader.
From parents covering the cost of unexpected car repairs to colleagues raising funds for their co-workers’ medical expenses, Americans help each other in countless ways.
As a social work scholar who researches these patterns of what I call “financial interdependence,” I often observe transactions that challenge a common American narrative that most people in this country are handling their expenses on their own.
A long-standing tradition
The practice of sharing money with your friends and loved ones has deep roots in American society. Many Native American communities have traditions of sharing food and other resources with one another.
In the 19th century, mutual aid societies formed everywhere from Philadelphia to Florida. Many of them helped free Black people weather economic hardships. These organizations provided everything from unemployment assistance to burial expenses.
Today’s informal support networks echo these historical patterns.
In particular, many immigrant communities maintain traditional practices of collectively saving and lending money. Mexican American families often participate in “tandas,” which pool their savings to achieve financial goals or meet urgent needs. Similarly, West African and Caribbean communities in the U.S. organize “susu” groups, while many Chinese American communities form “hui” associations.
Local “hometown associations” additionally often offer both financial and social support to their members – aiding immigrant communities in the U.S. and people back in their homelands.
Everyone does it
These mutual support arrangements are very widespread and operate across all income levels, though they take different forms. They can be secular or religious. The true extent of this kind of activity is generally unknown.
Lower-income families often engage in frequent, smaller exchanges. They might share grocery costs, for example, or relatives may help one another out with the payment of large, unexpected bills.
Wealthier Americans tend to give larger amounts of money to extended family members, but less often. These might include a parent’s help with a down payment on a young adult’s first house or paying a portion of the cost of a grandchild’s college education.
Some families establish formal structures such as financial trusts or 529 educational savings accounts to make these transfers easier to complete and track. The number of people using 529 accounts has been increasing steadily, as states offer matching funds and tax incentives.
The nature of this financial support often reflects economic needs and cultural values. In many East Asian American communities, for example, adult children routinely provide financial support to their parents – as a cultural expectation.
Regardless of the community involved, technology has transformed how people share money with their friends and family.
Mobile payment platforms make it easier to split costs and send quick assistance. Money-transfer apps have normalized small-scale financial sharing among friends and family.
Online and social media platforms are used to gather resources for medical expenses, funerals or emergency needs. These tools extend traditional support networks beyond geographic boundaries.
Other kinds of support
Financial assistance can extend far beyond direct monetary help.
Families and communities might purchase bulk grocery items together to save money, or live together to manage rising housing costs. Some parents create informal child care cooperatives, while others coordinate care responsibilities for aging relatives with their extended families.
Financial education often emphasizes individual savings and budgeting. Yet, many Americans practice financial interdependence by managing their finances and making decisions in collaboration with others.
Addressing challenges
To meet today’s economic challenges, Americans are finding creative solutions through shared resources.
Young adults increasingly need more help to become homeowners than what they can get from a bank. The median home price has far outpaced wage growth, making family assistance crucial for many first-time buyers.
College costs have stabilized, albeit at high levels, leading more families to pool resources for educational support. This often creates long-term financial obligations across generations.
Medical expenses remain a leading cause of financial strain, pushing families to rely on each other to pay for health-related costs.
These support systems work at many levels, including family, community, the workplace and in government.
Some employers now offer emergency loan programs and matching funds for employee hardship. Some businesses create formal peer support systems for employees facing financial challenges.
A few states are also supporting family caregivers by providing tax credits to reimburse their out-of-pocket expenses.
Recognizing the financial burden of caregiving, Michigan Gov. Gretchen Whitmer has proposed a tax credit to support dependent respite services, nursing and transportation.
Some complications
While financial interdependence provides crucial assistance, it can also create challenges.
Financial responsibilities can strain family and friendship bonds. The provision of too much financial help can create or reinforce power imbalances within relationships. Some communities may not have enough money to be able to equally and effectively assist all members.
Clear communication and healthy boundaries can help manage these tensions.
As economic pressures mount for many American families, these informal financial support networks are growing more vital. Studies show that rising costs make financial stability increasingly difficult to achieve on your own.
Jeffrey Anvari-Clark, Assistant Professor of Social Work, University of North Dakota
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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small business
Navigating the American Dream: How Integrated Financial Tools, Credit and Rewards Can Help Small Businesses Succeed
(Feature Impact) Owning a small business has been a cornerstone of the “American Dream” for generations. It represents the chance to transform a passion into a livelihood and legacy. However, turning dreams into reality is rarely a smooth or easy process and requires more than ambition alone. Today’s business owners need support and access to tools that enable them to overcome challenges and keep growing.
Recent research conducted by the Capital One Insights Center shows 75% of more than 1,000 surveyed small business owners with more than one employee and annual revenues of up to $20 million are confident about the future, and 69% believe their business is actively primed for growth.
While this optimism is promising, 47% of business owners still said their operations either stayed the same or became less efficient over the past year, citing issues like back-office friction and fragmented financial systems that make it difficult to get a clear picture of the health of their businesses.
If you’re a small business owner eager to grow but not sure how to get there, start with this advice from real small business owners and experts at Capital One.
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Identify Sources of Friction
Before you can pour effort into growth, you must understand what barriers are holding you back. Take time to look under the hood of your business to identify where time and energy is being lost.
For example, you may be among the 78% of small business owners who feel stressed and uncertain about expense management – think hours spent hunting for receipts, manually entering numbers into software and reconciling accounts. Operational challenges aren’t just a hassle; they also pull attention away from important priorities like serving your customers and planning for growth.
“We were focused on making as many candles as possible, especially during the busy season,” said Katie Roering, co-owner of Fontana Candle Co. “A lot of the back-office tasks like procurement, raw material purchasing, forecasting – all the really important things – were done at 3 a.m., 8 p.m. or on Saturday and Sunday, and there really just was not enough time in the day to get everything done that we needed to. We just knew as we continued to grow, we needed to streamline our processes, build out our team and keep moving forward.”
Use Integrated Tools to Manage Finances
Instead of balancing 10 different tracking and analysis tools, you can turn to one-stop solutions to improve efficiency. Time gets lost when you’re forced to manually gather and interpret relevant data before you’re able to act. You need a platform that handles the busywork for you.
Integrated, or “all-in-one,” financial tools – like accounting and bookkeeping platforms with automation capabilities or business credit cards featuring built-in analytical tools – allow you to easily stay on top of cash flow and day-to-day operations. For small businesses where every hour and dollar makes a difference, consolidating and automating systems can have an immediate impact. In fact, 51% of survey respondents said integrated tools have already fueled their growth.
Leverage Credit Access and Rewards Wisely
Growth requires capital, so access to credit is a game-changer for many business owners, with 77% describing it as a key factor in achieving business resilience. Having funds accessible when you need them makes your business more capable of weathering storms such as equipment failures and seasonal slowdowns. It also puts the power in your hands to act when an exciting opportunity presents itself, like an inventory flash sale or the chance to advertise in a new market.
Access to credit comes with another advantage: rewards. By using credit cards for your daily business expenses, you can earn cash back, points or travel rewards. Whether you redeem these to cover everyday expenses, book business trips or reinvest in the business, they can act as a bonus source of income. Learn to maximize rewards like the 84% of small business cardholders surveyed so you aren’t leaving money on the table.
To learn more about how small business owners can identify obstacles, employ integrated financial tools and use credit as a tool for growth, read the full report at capitalone.com/about/insights-center.
Photos courtesy of Shutterstock
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financial wellness
Investing in Education: 5 Ways to Prepare Students for the Jobs of Tomorrow
Jobs of Tomorrow: A diploma is still an important milestone, but what matters more than the piece of paper is whether graduates have the knowledge, skills and confidence to take meaningful next steps in pursuing further education or building careers. Students, families, educators, employers and policymakers all have a role to play in cultivating these opportunities.
Investing in Education: 5 Ways to Prepare Students for the Jobs of Tomorrow
(Feature Impact) The landscape of modern work is changing rapidly, leaving many uncertain about whether they’re adequately equipped to face the future. Even though America invests roughly $1 trillion in education every year, it’s difficult to know whether that investment is truly preparing young people for what comes next.
“Our education system isn’t evolving quickly enough to prepare our students for the jobs of tomorrow,” said Amit Sevak, CEO of ETS, a global education and talent solutions organization working with more than 30 million students a year to measure learning success and power human progress at every stage of life. “Students only get one chance at an education, and we have a responsibility to understand what’s working, what’s not and where additional support is needed.”
A diploma is still an important milestone, but what matters more than the piece of paper is whether graduates have the knowledge, skills and confidence to take meaningful next steps in pursuing further education or building careers. Students, families, educators, employers and policymakers all have a role to play in cultivating these opportunities.
Start the Conversation Early
Success isn’t a single path anymore, so young people may benefit from thinking outside the traditional pipeline of high school to college to a good job to retirement. By prompting early conversations, parents can help their children begin sorting through their options well in advance. Encourage dinner table talks about favorite school subjects, what kind of work seems interesting and alternative pathways to build careers. The goal isn’t necessarily to choose a life track immediately – just to start exploring ideas before the time arrives to lock in a decision.
Learn to Work with AI
In the age of AI, there’s a balance to be found between fully embracing or avoiding it. Parents and educators can encourage thoughtful, responsible use of the AI tools reshaping modern workplaces – without sanctioning them as a way to get out of doing homework. Students should think critically about both the uses and limitations of AI, learning how these systems work but still recognizing when human judgment matters.
Get Real-World Experience Before Graduation
Textbooks and classrooms can teach a lot, but some of the most valuable lessons come from the real world. Summer jobs, internships, volunteering, co-op programs, job shadowing or small-scale forays into entrepreneurship can help kids discover where their talents and passions fit. It’s also a chance to develop the soft skills that make great employees, like being punctual, working well with others and adapting to new situations.
Build Human Skills
There are certain abilities technology just can’t replace, making them vital pieces of future-proof training. Strong communication, teamwork mindsets, critical thinking skills, civic reasoning and empathy translate well to many careers. Rather than focusing strictly on academics, teachers can shift lesson plans to encourage growth in these areas. Specialized hands-on talents and trades are also more insulated from technological disruptions.
Measure Progress Beyond Grades
Grades and test scores don’t tell the whole story about career readiness, yet they’re often treated as the only metric that matters in educational success. Policymakers have the opportunity to change how schools measure student progress, including by trading the one-size-fits-all rubrics for more personalized assessments that demonstrate proficiency in more comprehensive ways. Education is on the ballot this election season, so ask your local and state elected leaders about whether today’s graduates are ready to face the future.
For information about a system that gives students, educators and employers clear evidence that learning is leading to opportunity, visit ETS.org.
Photos courtesy of Shutterstock
SOURCE:
ETS
Lifestyle
7 Fire Prevention Tips to Protect Your Home and Community
7 Fire Prevention Tips: Fires can be devastating, but many of them are preventable with simple precautions and smart everyday choices. Consider these tips to reduce the risk of fires and keep your household, family and community safe.
7 Fire Prevention Tips to Protect Your Home and Community
(Feature Impact) In observance of National Fire Prevention Month, it’s a good time to review your fire safety habits at home and in your neighborhood. Fires can be devastating, but many of them are preventable with simple precautions and smart everyday choices.
Consider these tips to reduce the risk of fires and keep your household, family and community safe.
Test Your Smoke Alarms
Smoke detectors are one of the simplest yet most important tools for protecting your home, loudly alerting you to potential danger at any time of the day or night. Test them monthly, follow manufacturer’s instructions for replacement and change batteries as needed.
Heat Your Home Safely
Depending on how you heat your home, there can be different hazards to remain aware of. Never leave fireplaces unattended when in use and have them inspected and maintained as recommended by a trained professional. If you use portable heaters, keep them at least three feet away from curtains, bedding, furniture and other flammable materials.
Prevent Electrical Fires
Frayed cords, damaged outlets or overloaded appliances can pose real danger to your home when they overheat or spark. Particularly if you live in an older home or have outdated appliances, keep an eye out for warning signs like tripped circuit breakers, malfunctioning devices or the smell of burning. If you’re concerned, have your system inspected by a qualified electrician.
Store Flammable Objects Carefully
Keeping matches and lighters out of reach of children is always a smart first step for household fire safety. Also follow safe storage practices for items like lighter fluid, propane, aerosol cans and other household products that could potentially ignite when exposed to heat or a stray spark.
Practice Smart Kitchen and Grill Habits
From sparks flying off the grill to hot oil forgotten in the frying pan, cooking is the leading cause of household fires. Stay attentive in the kitchen, never leave cooking food unattended and avoid setting combustible materials like paper plates or fabric towels too close to a stove or grill. Also keep your appliances cleaned and well-maintained.
Plan Your Escape Route
Fires can spread quickly, which is why it’s important for everyone in your household to know the plan (and backup plan) for safely exiting different areas of the house during an emergency. Decide on a specific meeting place outside and practice quick fire drills together to build muscle memory.
Observe Local Fire Safety Rules
Where you live determines what kinds of fire risks affect your community, so make sure you stay informed about local regulations. For instance, areas prone to drought or wildfire may have rules about outdoor burning, and local fire prevention ordinances may outline specific requirements for smoke alarms in your home.
Find more home safety tips at eLivingtoday.com.
Photo courtesy of Shutterstock
SOURCE:
eLivingtoday.com
