Over the last few decades student reading performance has been a growing concern, declining since the 1970’s. The National Assessment of Educational Progress (NAEP) shows that reading scores have been consistently declining since 2012. In 2023 the nine-year-olds group had their largest decline in reading since 1990.

In 2024, the literacy rate in the US was 79%, meaning 79% of adults had literacy skills that allow them to compare and contrast information, paraphrase, and make low-level inferences. The remaining 21% of adults had low literacy skills, boiling down to about 43 million adults in the United States not able to read at a functional level.

Diving into that 79% literacy a little deeper we see that the average American reads at a 7th to 8th grade level, and 54% of adults have a literacy below a 6th grade  level. 44% of American adults do not read even a single book in a year. 33% of high school graduates never read a book after high school.

According to most experts, the average age when a child in the US can read well is around 6 or 7 years old. Statistically students that can’t read proficiently by the end of fourth grade will end up in jail or on welfare. 85% of juveniles in the court system are illiterate. 70% of      inmates in US prisons can’t read above a 4th grade level. According to the Department of Justice, the link between academic failure and delinquency, violence, and crime is connected to reading failure.

The Child Mind Institute states that reading to a child at a young age, even before they can communicate    verbally, helps to lay a foundation for the neurological groundwork for effective language and literacy. Many studies have shown that when a family, especially the mother, reads to and teaches young children they perform better academically, including literacy. 78% of peer-reviewed studies on academic achievements show that homeschooled students perform significantly better than those in institutional schools. This is believed to be because of the effects of being in a family setting and having more one-on-one attention and learning.

Reading is considered to improve societies because it helps the reader to develop empathy, increases their knowledge and understanding of diverse perspectives, promotes critical thinking, and encourages tolerance towards different viewpoints. Reading leads to a more informed and engaged population.

Reading is important for our health as well. Multiple   studies have shown that reading reduces stress and    promotes wellness and can even help improve sleep. It can also help combat Alzheimer’s and Dementia and decrease the feeling of loneliness or social isolation.

It is crucial that we foster a love of reading in the people of this country. It is critical that reading becomes a focus of our education system. This year instead of the typical New Year’s resolutions, perhaps you could focus on and encourage those you know to read more. You could join a book club, make a reading/book goal chart, share books with loved ones, learn a new word each day, or devote a certain amount of time each day to reading.

For the health and wellbeing of our nation, it is paramount that we raise the literacy rate and encourage reading in the younger generations.

Every year Christmas rolls around brining carols, presents, joy…and stress. Deep down, inside each of us, lies the potential for a big green hairy Grinch to emerge. The Christmas season is a time for family and celebration, but for many, it can also be a time of  financial frenzy and stress that feels more akin to a Grinch-like robbery than a joyful occasion. So, how can you make sure that the Grinch doesn’t steal your hard-earned money and throw your holiday budget into chaos? Here are a few tips to keep your finances and your holiday joy secure. 

Create a realistic budget, and STICK TO IT. Nothing   triggers a grumpy Grinch more than having your budget fly off the rails. However, the first step to keeping that grumbly Grinch at bay is to have a budget in place. Start by reviewing your finances and determine how much you can comfortably spend on holiday expenses, including gifts, decorations, travel costs, meals, parties, or any other holiday-related expense. Prioritize the essentials and account for all the little extras that always come up. 

The Grinch in us loves when we wait until the last minute to buy gifts. That’s when we tend to overspend and stress ourselves out. Planning your shopping in advance gives you time to research sales, compare prices, and avoid the temptation of overpriced last-minute sales gimmicks. Try making a gift list for everyone you need to buy gifts for and budget for each person. A tip for the coming year: put money aside throughout the year and look for gifts all year long, especially during holiday sales. Planning ahead allows you to put more thought into the gifts you give, making them more meaningful for you and the recipient. 

Don’t be afraid to DIY some of your gifts. Handmade crafts, baked goods, photo albums, and similar things make wonderful gifts that will be cherished and can be a lot more budget friendly than some expensive store-bought items. 

Limit how much you put on credit cards. Remember that credit cards are debt, a liability, and you need to be mindful of what you’re willing to take on and increase your debt. Nothing brings out the Grinch like lots of credit card debt. Credit cards make purchases quick and easy. The easiness of credit cards can also make it easy to lose track of how much you’re   spending. If you feel the need to use credit cards for your Christmas spending, set limits and track your spending closely. Then make sure you pay it off as soon as possible. 

Do not use emergency funds for Christmas. Whatever money you have put aside for a rainy day, do not touch it; it has its own purpose and it’s not Christmas. Instead, create a different bucket for Christmas saving and/or other holiday spending. No justification is good enough to use emergency funds for holiday spending. 

Remember, you’re not trying to buy happiness or Christmas cheer. The best way to enjoy the holiday is by creating memories, not debt. Focus on the things that matter to you and your family. Make sure the Grinch doesn’t steal your hard-earned money, your peace of mind, or the joy of the season. 

We are nearing the long-awaited event where people all over the country will line up in the predawn hours to get the best deal of the year on socks…well at least they used to. Black Friday now starts on Thanksgiving and overflows into Cyber Monday. Businesses nationwide are gearing up for the peak sales of the year,  offering “unheard of” deals as well as other ploys to get people in the doors or to their websites.

Often seen as the kick-off to holiday shopping, Black Friday is an important day for many businesses across America, including local and small businesses. Like the big-box counterpart, small businesses see a surge in sales as consumers shop for unique gifts for the holidays. This high-profile weekend can bring in new shoppers,   providing expanded visibility and attracting new customers. However, on a small business level, Black Friday is not always all it’s cracked up to be. In some ways, it can have a negative impact.

While Black Friday definitely gets more people in the door and perusing websites, small businesses may struggle to compete with the massive discounts larger retailers can afford to offer. By discounting their products, small businesses cut into their profits, shrinking their profit margins which may even end in a loss, this greatly affects their financial health. Many people approach their holiday shopping expecting to find the best deals. Unfortunately, small businesses typically can’t keep pace with the heavy discounts offered by larger retailers.

What small businesses may lack in “killer deals” they make up for in their ability to offer unique items and often superior customer service. Many small businesses focus on        creating a specific “shopper experience” that is more desirable than shopping Big Box stores.

Consider shopping on Small Business Saturday. This day was initiated by American Express in 2010 as a way to help promote small businesses and boost their sales going into the holiday shopping season. This day emphasizes the importance of small businesses and the role they play in our economy. By choosing small and local over the larger retailers you have the opportunity to discover unique products as well as support your local economy.

Ah, the golden years...those glistening years you worked so hard to reach. It would be   disappointing to open the pot at the end of your rainbow and find it’s only half full.

I often advise people to “try out” their retirement plan. This would mean living for a few months on what you plan to live on and how you plan to live financially once you retire. This gives you an opportunity to really see if those plans will work for you or if it won’t be enough. This trial period offers you a chance to find the weak spots in your planning and make adjustments.

Trying out your retirement is all fine and good, but how do you start? How do you know how much to aim for? The amount you will need to retire depends on several factors like your desired lifestyle, when you want to retire, and what your income currently is. The general rule of thumb is to save 7-8 times your annual salary. Remember, money is emotional, your rainbow and pot are as unique as you are. No two retirement plans are exactly the same.

Analysts have reported that many Americans’ expectations for retirement are higher than what their current savings will allow. A survey done by Northwestern Mutual found that the average American thinks they will need $1.46 million in retirement savings to retire comfortably, this is up from last year, in which American’s reported a retirement goal of $1.27 million, a 15% increase. In 2020, we saw a target goal of $951,000, resulting in an increase of 53% just in 4 years. That is pretty significant. Unfortunately, the average retirement account at age 60 is $610,00. That’s a pretty big gap.

Some things that will help you along the way: Start early and put away as much as you can, try saving a specific percentage of your income, and include long-term investment strategies. The average American starts saving for retirement at about age 31. This starting point allows for 30-40 years to save, but starting earlier allows for more growth and better planning.

Another thing to consider while planning is the impact taxes will have on your retirement savings. Most retirement accounts have an early withdrawals (before age 59 ½) penalty 20% tax. Your retirement plan should include strategies to address and minimize the tax burden on your withdrawals. There are other ways to save for retirement than just a “retirement account.” There are myriad financial tools that can help strengthen your retirement savings.

My advice is to not wait. Don’t wait to start planning and putting money into a retirement account. Don’t wait to try out your retirement, find the weak spots now. Don’t wait until retirement to realize taxes are eating up too much of your income. Start now. Make a plan and practice that plan. Secure tomorrow, especially those golden years.

Everyone has an estate plan; however, it comes down to whether you want it personalized to your wishes or not. You see, if you have not done the work ahead of time to organize and plan, your resident State has a plan for how they handle the distribution of your assets once you pass. That means that regardless of how you feel about it, your estate will go through probate (which could take months), making your estate public, and ultimately be decided by people who don’t know you or your family’s needs.

Effective estate planning involves creating a will(s) and/or trust, designating executors, trustees (in the case of a trust) and beneficiaries. Typically, it includes planning your possible incapacitation, which includes documents for your healthcare and financial decisions. This not only provides peace of mind for you and your loved ones, but also ensures that your financial and personal affairs are handled in a manner that reflects your values and intentions. Proper estate planning can prevent legal disputes, protect your heirs, and facilitate a smoother transition of your assets, ultimately preserving your legacy and providing for the future of your loved ones. 

Currently, if your estate is less than $13.61 million in assets, you may not need to worry about federal estate tax. This amount is good through the end of 2025 when the 2017 Tax Cuts and Jobs Act (TCJA) expires. However, beneficiaries may have to pay Income tax and capital gains tax depending on the  assets they inherit. This could become a substantial financial burden to your loved ones. Remember spouses inherit estates completely estate tax free. Children and other people or entities do not. Often times it is the second death that causes the problems concerning taxation. Proper estate planning should include proactively organizing your estate in a way that reduces the tax burden placed on your heirs. Luckily there are strategies to help you remove some of that tax burden.

One strategy is to create an irrevocable trust, which may help alleviate some tax burden because it transfers the ownership from the original owner to the trust. Because those assets no longer belong to the person who set up the trust, they may not be subject to inclusion in an estate when that person passes away. Another benefit to using a trust is it removes the probate process from the dispersal of your assets and keeps your estate private.

Another option is to make small, non-taxable gifts to your heirs during your lifetime. The IRS allows you to gift up to $18,000 per person without filing a gift tax return. By giving your loved ones the maximum gift each year, you reduce the size of your estate, thereby lowering its taxability.

When the TCJA expires at the end of 2025 if it is not renewed by congress and the president, the estate tax exemption could revert to about half its current level. It’s also important to know your state laws pertaining to estate taxation, because several states have lower estate tax thresholds than the federal government’s. When in doubt it is always wise to seek the advice and counsel of an estate planning attorney to help you settle your estate in a way that is best for you and your family.

Photo by Dan Meyers

We’ve been hearing about unemployment on the news a lot lately, especially leading up to the Fed’s meeting back in August. The Fed expressed concern about the unemployment rate, stating that was part of the data they took into consideration when deciding to lower interest rates.

The official unemployment rate we hear about on the news is called U-3 measure. While this is the data broadcast most often, it unfortunately does not give a complete picture of the unemployment situation because it only accounts for unemployed people actively searching for jobs within a 4-week window.

The unemployment rate in the US fell from 4.3% to 4.2%, representing 7.1 million people looking for work, which means, in theory, fewer people were unemployed. However, this does not include Discouraged Workers. These are adults who have looked for jobs at some point in the last 12 months but are not within the four-week period. Often, they have given up looking for a job (possibly temporarily). Ignoring these people makes it seem like there are fewer unemployed people.

Another issue with the U-3 unemployment measure is it does not take into consideration the quality of jobs that workers are accepting, nor does it distinguish if they are working part-time or temporary jobs.

The Real Unemployment Rate (U-6 measure) uses the data from the U-3 measure as well as four other measures of unemployment accounting for people outside the four-week window. Using this data will give a much better understanding of the actual unemployment situation in our country.

In spite of an unstable economy and uncertainty going forward, the last few years have shown that Americans are resilient spenders. Last year, according to the National Retail Federation (NRF), consumers spent over 12 billion dollars on Halloween purchases. It seems even fear of a recession isn’t enough to spook Halloween enthusiasts.

For many adults, Halloween is a highly anticipated holiday marked by parties, trick-or-treaters, and the opportunity to escape the real world and immerse themselves in a socially acceptable world of make-believe. There’s a whole slew of people ticking off the days until Fall, eagerly awaiting the release of seasonal and holiday decorations and goodies.

However, lately those autumn enthusiasts haven’t had to wait until September and October.

Retailers have been bringing out the Halloween merchandise earlier each year. For some retailers, like Michaels, 2024 marks the earliest release of Halloween yet stocking their shelves in late June with their spooky collections. This is quite a jump from a few years ago when the earliest they would bring out cauldrons and skeletons was August.

Similarly, Halloween online sales pretty much started during the last week of September, but according to trend forecasting service Granularity, peak online sales have been inching back a week each year Since 2019.

Most retailers state their reason for bringing out the creepy commodities earlier is to boost sales during what is normally a slow sales period. On most polls, Halloween ranks in the top three favorite holidays in America. Retailers are jumping at the chance that most buyers won’t be able to pass up purchasing for their favorite holiday, regardless of the time of year. 2024 is the second year in which Home Depot hosted their “Halfway to Halloween” event on April 25 at which they sold limited quantities of Halloween items. Home Depot isn’t the only one, Lowe’s and Target also released Halloween items online earlier than previous years, jumping on the “Summerween” bandwagon in which spooks and summer BBQs share shelf space.

The marketing ploy seems to be working. The $12.2 billion spent last Halloween was a record high, surpassing the $10.6 billion spent in 2022. When we break the numbers down it comes out to an average of $108.24 spent per person. The majority of that was spent on costumes, followed by Halloween décor, proving there’s way more to Halloween than just trick-or-treating.

Halloween isn’t the only holiday bringing in the big bucks. Halloween may be one of the favorite holidays to celebrate, but when it comes to spending it only ranks in the upper top ten. Last year Americans spent an estimated $886 billion on Christmas purchases, $24 billion on Easter, and $23 billion on Valentine’s Day. All this goes to show that even during times of uncertainty people still want to celebrate and enjoy the holidays.

It might not seem like it, what with all the sunshine and hot summer temps, but 4th quarter is nearly upon us. Now is the perfect time to start thinking about…your taxes. There, I said it. I know no one likes to think about taxes, and while it may seem a bit early to worry about taxes, the end of the year will be here before you know it, and it’s never really too early to review, organize, and plan for filing your taxes.

End-of-year tax planning is a practice that involves making financial decisions aimed at optimizing tax efficiency, reducing liabilities, and taking advantage of available deductions and credits. Effective tax planning not only ensures compliance with tax laws but also allows individuals and businesses to retain more of their hard-earned income, reinvest in growth, or save for future endeavors.

While preparing for the current tax year, it is a good idea to review your previous year’s tax return and make note of any changes that have occurred since the last time that you filed. i.e. did you move, retire, change jobs, get married/divorced, or did your tax bracket change? Highlight any of those changes and find any paperwork associated with them.

Each time you file you are eligible for standard deductions and certain tax credits. If your tax bracket has changed, so may have some of your credits and deductions.

Remember that tax deductions help to reduce your taxable income, which means you will have a lower tax bill. You do not want to miss out on any that are available to you. Check your for eligibility for retirement contributions, educational expenses, medical bills, property taxes, mortgage interest, charitable donations, etc. Make sure you have the needed paperwork to prove you qualify for each one; this will protect you in the event of getting audited.

You might need to consider maximizing contributions to retirement accounts such as IRAs or 401(k)s, which can lower taxable income and provide long-term savings benefits. Similarly, businesses may accelerate deductible expenses or defer income to reduce taxable income for the current year.

Timing is also crucial in end-of-year tax planning. By strategically timing income and expenses, you or your business can smooth out their tax liabilities over multiple years, thereby optimizing their overall tax burden. This may involve deferring income into the following year or accelerating deductible expenses into the current year to maximize tax savings.

Don’t wait until the end of the year, or worse April 15th, to figure out what you can or could have qualified for. It’s like the old saying, “if you snooze, you lose.” Once we cross December 31, there’s no going back to claim things you might have been able to claim. When you plan ahead and keep your paperwork organized throughout the year, it will help you better manage your tax burden. If you stay on top of it, you will be able and ready to take advantage of all the available tax credits and deductions.

If you have felt frustrated with the exorbitant cost of groceries, you’re not alone. People all over the country are getting fed up and frustrated with the ongoing rise in food prices. Inflation may have slowed its pace, but that doesn’t mean consumers aren’t still feeling the sting of sky-high food prices. According to the Bureau of Labor Statistics, The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.0% over the last 12 months to an index level of 314.175 (1982-84=100).

Overall, food prices have risen 26% since the beginning of 2020. Since 2019, according to Bloomberg, the average cost of a fast-food meal has surged 47%. The Labor Department reported back in May that dining out will cost you almost 30% more than back in 2019. As of May, the cost of eggs had been on the rise with triple-digit year-over-year increases throughout 2022 and 2023. Lately, U.S. consumers spend more than 11% of their disposable income on food. This is higher than it’s been in thirty years.

Back in May it looked as if food prices might be on the decline, but after finally dipping, grocery prices rose by 0.2% from May to June, igniting frustration in consumers. The latest CPI report shows food prices are up 0.24% from June 2024 and 2.23% higher than they were 12 months ago. When compared to overall prices in 2023 there was a 5.7% increase.

Historically, food price spikes have been linked to social unrest and political instability, especially in the more economically vulnerable regions. While we’re not seeing people taking to the streets (at least not yet) people are taking to their social media platforms. Social media has been splattered with shocked consumers comparing their grocery bill from 4 years ago to today’s outrageous prices. Since February of 2020 consumer prices have increased over 20%. That’s quite a bit above the historic average for a four-year period. According to Yahoo finance, a basket of groceries that cost $100 in November 2020 would not cost $125.80, an increase of nearly $26 dollars for the exact same food items.

The rising cost isn’t the only sting. Adding salt to the wound is what’s now called “shrink-flation.” This is where companies charge the same price (or more) for a smaller amount of product. So that basket of food that increased $26 dollars may have the same products, but many of them are smaller than they were back in 2020, increasing the gouge consumers are feeling.

While we have seen some individual food items like some fruits and vegetables come down, the overall cost of groceries hasn’t really decreased, at least not enough to make a difference in people’s budgets. We are seeing a glimmer of light, however, as wages are slowly catching up and inflation begins to ebb. (As reported by the BLS, From June 2023 to June 2024, wages have increased 5.1%).

So, what can you do? One of the best ways to combat food inflation is the old fashion practice of growing your own garden. You could also find reliable local sources. Visiting your community farmer’s market is a great way to invest in farm fresh produce, preserves, salsa, soaps, lotions, and other products. Not only do local farms provide higher quality and better tasting foods they usually offer products that are less likely to contain harmful chemicals. Supporting your local farmers and makers is also another great way to support your local economy.

Photo 1 by: Stevepb

Photo 2 by: Bruno Kelzer