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Michigan
Association
of CPA's
step to
improve
your
financial
literacy
DETROIT,
MI - Do
you wish
you had
more
control
over
your
financial
situation?
The good
news is
that you
don’t
need to
read a
textbook
to
improve
your
financial
literacy.
In fact,
according
to the
Michigan
Association
of CPAs,
there
are a
few
simple
steps
you can
take to
begin
getting
your
financial
house in
order.
1:
Make a
Plan
Put
together
a
regular
household
budget
that
details
how much
money
comes in
each
month
and what
you
spend on
necessities
and
other
discretionary
items.
This
will
make it
easier
to avoid
spending
more
than you
earn or
running
up more
debt
that you
can
manage.
It can
also
identify
areas
where
you need
to cut
back.
The
budget
can
serve as
the
blueprint
for
achieving
your
financial
goals.
If
you’re
not sure
how to
get
started,
your
local
CPA can
offer
some
tips.
2:
Start
Saving
Now
If
you’re
not
already
a
regular
saver,
use your
budget
to
determine
how much
you can
set
aside
each
month in
savings
and
retirement
accounts.
Whether
it’s for
a
long-term
goal
such as
college
or
retirement
or for
your
summer
vacation,
saving
sooner
rather
than
later
allows
you to
build up
more
interest
along
the way.
Get in
the
habit
now and
you’ll
be very
pleasantly
surprised
by the
many
options
you’ll
have
open to
you down
the
road.
3:
Get a
Handle
on Debt
The
average
credit
card
debt for
households
with
credit
cards is
around
$16,000,
according
to the
Federal
Reserve.
Not only
are
those
households
likely
facing
years of
monthly
payments
to pay
off that
debt,
but they
will
also be
paying
hundreds
or
thousands
of
dollars
of
interest
on their
balances
over
time. If
your
household
budget
includes
more
debt
than it
should,
there
are a
number
of steps
you can
take.
Instead
of
focusing
on the
minimum
balance
each
month,
think
instead
about
the
maximum
you can
realistically
pay.
Figure
out
which of
your
charge
accounts
carries
the
highest
interest
rate and
plan to
pay off
that
balance
first.
Many
people
would
jump at
the
chance
to earn
10
percent
to 15
percent
on an
investment.
If you
pay off
high-interest-rate
credit
cards
that
charge
those
rates,
you will
be
putting
that
much
money in
your
pocket.
If
possible,
transfer
your
outstanding
balances
to
lower-interest-rate
accounts.
To
prevent
your
outstanding
balances
from
growing,
leave
your
credit
cards at
home
when you
shop and
buy only
what you
can
afford
with
cash.
4:
Seek
Opportunities
to Pay
Less
Clip
coupons
and look
for
sales
whenever
possible.
If you
haven’t
aleady
done so,
familiarize
yourself
with
online
sites
that
offer
coupons
for many
popular
retailers
or
feature
group
shopping
deals.
Although
your
savings
on each
item may
be
small,
you’ll
find
yourself
with
more
money in
your
bank
account
at the
end of
each
month.
5:
Expand
Your
Knowledge
The CPA
profession’s
360
Degrees
of
Financial
Literacy
program
features
a wealth
of
information
on
challenges
that
consumers
may
face.
The site
is
organized
to
provide
advice
to
people
in
various
life
stages
and
situations,
including
tweens
and
teens;
college
students;
workers;
small
business
owners;
those
serving
in the
military
and
reserves;
homeowners;
couples;
parents
and
children;
people
in
crisis;
and
retirees.
It helps
users
educate
themselves
about
the
issues
they’re
facing
and
provides
calculators
and
other
practical
tools
you can
use to
better
understand
your own
needs
and
options.
Consult
Your
Local
CPA Have
more
questions
about
any of
the
steps
recommended
here? Or
would
you just
like to
gain a
deeper
understanding
of your
financial
situation?
Your
local
CPA can
help.
Turn to
him or
her for
practical
advice
on all
your
financial
questions.
Go to
michcpas.org
to find
a CPA in
your
area,
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