As the new school year begins, many school employees are focused on getting back into a regular routine. It's also a great time to create a new financial routine. Here are five financial check-ins to help you feel more prepared for the months ahead.
1. Review High-Interest Debt
If your credit card balances increased over the summer months, start by reviewing your interest rates and monthly payments.
Explore options such as a low-interest credit card balance transfer or a low-interest personal loan with fixed terms to consolidate debt. Lowering your interest rate can help you pay down debt faster and free up more of your paycheck for savings and other financial priorities.
2. Refresh Your Emergency Savings
Unexpected expenses can happen, from a car repair to a medical bill. If your emergency fund took a hit this summer, there are ways to build it back up.
Consider buying secondhand instead of new when it makes sense, or auditing your subscriptions and canceling what you don’t use. The money you don't spend can go toward rebuilding your emergency fund.
Another option is to move your emergency fund to a high-yield savings account. If it earns very little interest now, a higher rate can help your savings grow quickly while keeping your money available when you need it.
You can prepare for next summer, too. Look into whether your financial institution offers a high-yield summer savings account specifically for school employees. You can also check if your district offers a program to spread your 10- or 11-month pay over 12 months.
3. Check Your Retirement Savings Plan or Start One
It's never too early or too late to focus on retirement savings.
Review your pension, 403(b) or 457 plan and ask yourself:
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- Do I know where my retirement savings stand today?
- Am I confident that my retirement plan is on track for my future or should I set up a meeting with a retirement planner?
- Could I save a little more from each paycheck?
Even small increases can help strengthen your retirement readiness over time.
4. Update Your Auto Insurance
Family needs can change over time and your insurance coverage should keep up.
Changes in commuting, new drivers, shared vehicles or family members moving in or out can all affect your coverage. Ask your insurance provider to review your policy for the right coverage and see if you qualify for any new discounts.
5. Set One Financial Goal for the Year
You don't need a long list of goals. Choose one priority and focus on steady progress through the end of the year.
A realistic goal might look like:
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- Building emergency savings to at least three months of monthly expenses.
- Increasing retirement contributions by 1%.
- Reducing high-interest credit card debt by half.
A new school year often brings a fresh routine, making it a good time to revisit your finances. A few check-ins now can help you get more value from each upcoming paycheck and stay focused on the goals that matter most.