5 Ways to Improve Your Finances in June

June is here, which means we’re halfway through 2022 (we can’t believe it either). So before your summer plans get well underway, take a moment to focus on your finances. Here are five ways you can improve them during the month of June. 

Take stock of your financial situation 

It goes without saying that a lot has happened since 2020. So it’s a good time to reflect on all the changes and their impact on your finances. 

One place to start is with your day-to-day spending. According to the 2022 Northwestern Mutual Planning and Progress study, 95 percent of Americans said they adopted better money habits in 2021, but only 73 percent felt that way in 2022. If you’ve looking to get back on track and reintroduce some of those good habits, things like reviewing your cash flow and leveling up your savings over time (while also working in a splurge or two) can help you get there. 

Another change you may have experienced in the past two years is a major life event. Did you boost your income thanks to a new job, expand your family, or decide you want to take a sabbatical? These are just a few of the situations when it makes sense to revisit your financial plan. An advisor can help you determine how these new circumstances fit into your big-picture strategy. 

Consider a mid-year check-in 

We’re approaching the six-month mark of the calendar year. How are you progressing with your financial goals?  

Think back to what you set out to accomplish earlier in the year. For instance, maybe you wanted to get a better handle on your debt. In that case, have you prioritized which payments you want to tackle first? (Remember that in most situations, you’ll want to knock out high-interest debt — like credit cards — first). If you haven’t made as much progress as you’d like, don’t fret — after all, there’s no time like the present.  

On the other hand, if you feel like you have a better grasp on your debt, you may want to consider other goals like building your emergency fund or investing. No matter how far along you are, a mid-year scorecard can give you the motivation to carry you through the rest of the year.

Focus on your child’s financial future 

Saving for your child’s college education is typically a long-term goal, and there are a number of ways to go about it. If you’re feeling behind on college savings, know that you have some options. In addition to a dedicated savings account, like a 529 plan, you could also look into leveraging your home equity and/or cash value from a life insurance policy to help make up the difference.  

Even if college costs aren’t top of mind for your family, there are still ways you can help your child start off on the right financial footing. That could mean opening a custodial Roth IRA on their behalf, which can give them a leg up when it comes to retirement savings. Or, it could be as simple as giving them a lesson on how to build healthy money and credit habits.

Read up on the latest child tax credit changes 

In 2021, the government offered an enhanced tax credit for parents, which expired at the end of December. That means that for 2022, the 2020 rules are back on the table. Most notably, the credit is back to $2,000 for each dependent child age 16 and under for most people. For a full overview of the latest on the child tax credit, here’s what’s changing in 2022. 

Plan a last-minute getaway 

While it might feel a bit late in the game to be squeezing in a summer trip, there’s still time to plan something that fits the bill. So whether you’ve got your eye on a quaint, small-town destination or are simply craving a beach getaway, here are the popular travel trends pros recommend.