Qualify for student loan forgiveness?
Here are some responsible ways to put your newfound savings to good use.
Are you one of the thousands that will benefit from your student loans being forgiven? If so, make the smartest move with your savings.
Michelle Presnell, United Way Community Impact Manager for Financial Stability, shares her top five ideas on ways to reallocate your new savings to make yourself more financially secure.
Use the savings to increase financial stability.
-
- Pay down other debt. Resolve past due bills and start tackling your debt. A good rule of thumb is to start by paying down debt carrying the highest interest rate.
- If you need help with debt reduction, contact our 211 Information and Referral service to learn about resources in our area that help with debt consolidation.
- Make needed home repairs.
- Have deferred medical treatments performed. If you have been putting off seeing the doctor, dentist, optometrist or other medical specialist, use your new savings to better your own health. Likewise, if you’ve been putting off medical bills, your savings could now go towards helping pay that down.
- Pay down other debt. Resolve past due bills and start tackling your debt. A good rule of thumb is to start by paying down debt carrying the highest interest rate.
Create a savings account.
-
- With money freed up in your budget, get your emergency savings into good shape. Emergency funds provide financial stability so that you can respond to unexpected life expenses.
- If you currently don’t have a savings account, explore options at your existing financial institution. Or, if you are one of the many who are unbanked, check out our Bank On ICT program to find financial institutions in your area who offer safe and affordable, low-barrier banking options.
Invest in your retirement.
-
- It is never a bad time to start looking at your financial future. With funds potentially freed up, review your retirement contributions and consider increasing them.
- Inquire with your employer to learn more about retirement contributions they may match to increase your savings potential.
- Meet with a financial counselor or a retirement specialist to ensure you’re on track with your future goals.
Put money towards vacation or a fun expenditure (AKA: work towards a treat).
-
- Dream of the possibilities and make a plan!
- Financial health isn’t just about saving every penny you earn; it’s about how you use your earnings to influence your quality of life.
- Identify a want, maybe it’s small like a coffee or large like a vacation. Once you’ve named your want, identify what it will take to achieve and start saving towards that goal.
Donate towards a good cause.
-
- Give back to your community through donations or employer payroll deductions by using your new savings to help a neighbor. Make sure you do your research about who you are donating to.
- How is your donation used?
- Is your donation going to stay local?
- What type of impact is the organization going to make with your donation?
- Did you know United Way of the Plains takes each dollar donated and turns it into $2.20 worth of impact? Watch this video. Want to support United Way’s work? Donate today at unitedwayplains.org/donate.
- Give back to your community through donations or employer payroll deductions by using your new savings to help a neighbor. Make sure you do your research about who you are donating to.
OUR FOCUS
Our focus is on health, education, financial stability and basic needs—the building blocks for a good quality of life and a strong community. Click below to learn more about what we’re doing, the programs we invest in and our lasting impact in each area.
