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5 Smart Financial Steps to Take During Summer

By U.S. News & World Report

Summer is here. Children are out of school. The weather is hot. Half of the year is already gone. Summer vacations are happening. People are starting to look ahead at what’s coming for the rest of the year.

If you find yourself indoors on a hot and humid afternoon, there are several little financial tasks that are worth completing. Here are five personal finance tasks that you should consider tackling in the heat of the summer.

[See: 10 Summer Savings Tips.]

Check your tax withholding. Take a look at your tax withholding from your workplace. Does it actually reflect the current state of your life? Are you withholding taxes for the correct number of dependents?

Withholding for too many dependents means that you’re probably paying taxes each April, whereas withholding for too few dependents means your paycheck is smaller than necessary, and you’re effectively giving the government an interest-free loan each paycheck. Neither one is a good situation, so make sure your withholding is correct on your W-4 form.

Even if there hasn’t been a change in your dependents recently, it’s still worth checking into, particularly if you’re consistently getting a sizable tax return each year, or if you find yourself paying taxes each April. Your number may have been incorrect for a while.

Check your retirement savings. It’s a good idea to take a peek at your retirement savings once every six months or so, and if you’re doing that as part of an annual financial review (say, during your winter holiday break), a hot summer afternoon is the perfect time to take another look.

[Read: Keep Your Money Goals on Track With a Midyear Financial Checkup.]

Mostly, you’re just checking to make sure things are in order and as you expect. Are your contributions being deposited as you wish? Are you happy with your investments? Are things projecting outward to a healthy retirement?

If things look good, this should only take a moment. If things aren’t going the way you want them to go, then you may have some changes to think about.

Start saving for the holidays (if you’re not already). It’s may be hard to believe, but the winter holiday season is just five months away. For many people, the winter season means some very big expenses, but those expenses can be reduced by starting your savings now.

For example, if you start putting aside $200 per month now, you’ll have $1,000 in cash to spend during the holiday season on gifts and travel. That’s far better than trying to cough up $1,000 in December or having to rely on credit cards to make it through, leaving you dealing with debt.

Make a rough holiday budget now and start saving throughout the summer and fall. You’ll be glad you did.

Take advantage of tax-free holidays. Many states offer tax-free holidays during the summer, particularly in the late summer. These tax-free holidays are often designed to reduce the impact of back-to-school shopping on cash-strapped families, and smart retailers jump on board, often competing with each other to offer the best sales to attract those bargain-seeking customers.

Take advantage of this by finding out what tax-free holidays are coming up in your state and see if you can take advantage of them. For example, Iowa traditionally has a tax-free holiday on clothing at the start of August, meaning that it makes a lot of sense to buy apparel then because you avoid sales tax and you can take advantage of many sales.

[See: Avoid These Common Pitfalls During the Back-to-School Shopping Trip.]

Live lean to pay off vacation debts. If you did any travel this summer, you’re likely carrying some debt from that trip. Rather than letting that debt ride on your credit cards, now’s the time to take advantage of cheap living during the summer to pay down those debts.

Take advantage of the tons of fresh produce available at cheap prices right now to make meals at home and save money on food. Keep your windows open and the ceiling fans running instead of blasting the air conditioning. Use your feet or a bicycle to commute to work and get around in order to save money on gas. Little tactics like that can help you make a big payment on that vacation debt, which will save even more money by reducing the interest you pay going forward.

Summertime is a great time for enjoying the great outdoors, traveling a little and spending time with family. It’s also a great time to perform a few little tweaks to get your financial house in order. Take advantage of that opportunity.

More from U.S. News

Prepare Your Finances for the Holidays

10 Money Mistakes New Grads Make

8 Easy Ways to Organize Your Financial Life

5 Smart Financial Steps to Take During Summer originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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