Family Finances in 2022: Why You Should Start Learning Now
The economy is changing, and so is the way we manage our finances. In 2022, there will be a few major changes that affect how you should start learning about family finances now. We’ll go over these changes in detail to help you prepare for the future.
Have an Excel Spreadsheet
If you have the basics of Microsoft Excel, then you are set for 2022 because this will become a common way to manage finances. In 2022, many people are switching from the traditional register and paper system because it is outdated.
One of the biggest benefits of using an Excel spreadsheet in your family finances is that you can easily set up categories for your assets and liabilities. This type of organization makes it easier when trying to track where your money is going each month.
Another great benefit of using Excel is creating different formulas to help with budgeting and forecasting. For example, you can figure out how much your monthly expenses will be in the future by using a formula that takes into account inflation rates.
Start a Retirement Fund
In 2022, it will become even more critical to start a retirement fund. This is because the traditional pension system will be nonexistent, and social security benefits are expected to decrease by 12%.
If you wait until 2022 to start your own family finances, then this could cause you financial stress down the road. If you already have an IRA or 401k, make sure that it is growing as quickly as possible.
Be Mindful of Credit Scores
Your credit score will be even more critical in 2022 than it is now. This is because the number of lenders who offer loans based on credit scores will increase. Additionally, the interest rates for those with lower credit scores will be much higher.
To make sure that your credit score is as high as possible, make sure that you pay off your credit cards on time and don’t take out too many loans. When shopping around for better interest rates, be careful of signing up for store or manufacturer’s credit cards because these typically have high-interest rates.
You won’t need to start learning about family finances in 2022 if you already know how to budget and save. Luckily, you can start learning now by setting up a budget plan on Excel or making sure that you have the right credit cards in your wallet.
The Takeaway
It’s easy to walk into 2022 if you have everything planned out. If you already know how to manage your family finances, then that’s great! However, if not, now is the time to figure it out because things will change quickly in 2022 due to significant economic changes. Begin planning for life after college by learning more about family finance and budgeting today!
