Financial literacy series

Buy now, pay (and pay, and pay) later

With the prevalence of ‘buy now, pay later’ modalities, in-app purchases, and social shopping opportunities, it can be very easy to spend quite a lot with just the touch of a button. Who hasn’t been tempted by the ease of upgrading an app for a small fee, spreading payments over a period of time, or buying that product you didn’t know you needed until right now?

Buy now, pay later (BNPL) is a type of short-term financing that allows people to make purchases and pay for them over time. Generally, they do not charge interest. As these BNPL platforms become more common, consumers should be sure to read the fine print. This type of financing is not as closely regulated as credit cards, so terms can vary significantly.

Call to action
Read the fine print and prepare for your payments, since being late or missing a payment can result in late fees and damage to your credit score. Parents, talk with your teens about the pros and cons of BNPL, and how it can affect their credit history, report and score.

Additional learning
Work-Life Solutions (WashU’s EAP) provides small steps to securing your financial future.

Turning Dreams into Reality

Many of us have big dreams like buying a house or retiring early. Saving for these major milestones doesn’t have to be overwhelming. With careful planning and smart investments, anyone can reach their financial goals. Keep these tips in mind (inspired by the Enrich article, “How to Save for Major Milestones“) to start saving today and making progress toward your future goals.

1. Set your goal. The first step is estimating costs to determine how much money you need to save. For example, experts recommend saving 10 – 15% of your income for retirement. Sound daunting? Don’t worry: your employer match counts, too. If you save 5% of your income and your employer matches another 7%, you’ve accomplished a 12% savings rate. Setting realistic goals based on your current financial situation helps you create a clear action plan with achievable milestones.
2. Develop a plan. Next, create a realistic plan for how much you can save each month. After determining the cost of your milestone, consider your current financial situation. How much can you set aside? Everyone’s situation is different, so what works for one person may not work for another. Creating a realistic plan early on can help you stay on track to achieve your savings target. 
3. Start investing. With a plan in place, consider the power of investing. Investments can significantly grow your money over time, potentially offering higher returns than traditional savings methods. However, remember that investing involves risk. For example, if you invest in the stock market, there’s always a chance you could lose money. Many options are available, so do your research beforehand to choose the one that best suits your risk tolerance and financial goals.
4. Take advantage of tax benefits. There can be tax benefits available depending on your savings goal. Explore accounts like IRAs for retirement or 529 plans for educational savings that offer tax-advantaged benefits. If you’re unsure which type of investment or savings account makes sense for you, consider reaching out to a financial professional. They can guide you through the options and help you choose the best one for your situation. 

With careful planning, consistent saving, and taking advantage of investment growth and tax breaks, you can make progress towards even your biggest financial dreams. Start saving today and watch your future get brighter with each deposit.

Call to action

• TIAA Individualized Consultations
  Meet with our WashU/TIAA-certified consultants to develop a personalized strategy aligned with your goals. In a one-on-one consultation, you’ll get expert guidance on budgeting, maximizing benefits, growing wealth, protecting assets, and more. Walk away with an actionable plan to pursue the future you want. Take control of your financial story and schedule your complimentary individualized consultation.
• Boost your retirement savings with WashU’s match
  Contribute at least 5% of your pay to your WashU retirement account each pay period and get a 7% university match automatically. That’s free money for your future! Learn more about the plan here.

Dive Deeper

• Unlock expert insights on saving for specific goals with Enrich’s content library.
• Financial freedom is within reach. Enroll in the 45-minute Enrich course “Getting Out of Debt (and Avoiding It In the Future)” and build a secure financial future.
• Explore TIAA’s comprehensive suite of financial tools and calculators, including their retirement calculator. These resources can help you plan, estimate savings needs, and make informed decisions about your financial future.

Information shared in Enrich is confidential. WashU never receives your personal financial information.

Guest author, Krista Jarvis, clinical case manager in the Department of Psychiatry, brings unique insights into the psychological aspects of money management.

Personal finance is a topic that can be emotional and deeply personal. We each have our own relationship with money. If you are like many people, finances can be a source of stress. We are influenced early in life by those around us and their relationships with money. Did you ever hear as a kid “Money doesn’t grow on trees” or see adults arguing over bills? Perhaps money was just never discussed and was an off-limit topic. The larger culture can also have an influence on our beliefs around money. An example is the American sentiment that anyone can be wealthy if they “just work hard enough”.

As a result of these influences and our own personal experiences with money, we often develop strong associations and values that can shape our financial behavior. Sometimes these might align with our goals, but other times they may get in our way and hinder our financial well-being. If you experience challenges in your own relationship with money, just know that most of us do. We are often discouraged from openly discussing these things, and that can contribute to a sense of isolation and shame. If changing your relationship with money is something that you are interested in, here are two action steps to get you started:

Dive Deeper

Consider some beliefs that you hold or that others around you have held about money. How strongly does each “feel” or not feel to be true? Notice this is different than how true these beliefs or values are logically. For instance, we might feel that “not being good with money” is a personal or moral failure. A more helpful way to see money challenges may be to view them as an opportunity to discover and build new strategies that work for your life, rather than the result of who you are – “I’m just bad at budgeting”.

Call to Action

Observe and take note of your stress levels around your personal finances. What causes the most stress? Consider taking Enrich’s financial stress test.

Guest author, Krista Jarvis, clinical case manager in the Department of Psychiatry, brings unique insights into the psychological aspects of money management.

Though we might see the value of budgeting to reach our financial goals, the reality can feel complicated. We may feel skilled at creating and sticking to budgets, but experience worry when something out of our control changes things. For some, budgeting may seem pointless when there isn’t anything “extra” beyond basic expenses. This can feel especially true when every month seems to start at a deficit.

We live in what tends to be a culture of silence around money. We are discouraged from being open about our earnings and what we can afford. As a result, we can find ourselves caught up in comparison and feeling bad that we don’t seem to have it together in the way that others seemingly do. This can be amplified for us when we attempt to follow a budget that is based on guidance that doesn’t fit our lives. A budget should be somewhat fluid and able to change along with the ins and outs of our lives. It should also be something we use for guidance, not something we get down on ourselves about when reworking is needed.

Dive Deeper

If you’d like help with a budgeting strategy, Enrich offers many options – from educational tools and resources to coaching support. Log in to explore their budgeting content, including this simple budget spreadsheet.

Call to Action

Here are some budgeting action steps for consideration:

1. Think about what your finances would look like if things were going really well. Write down some of the key pieces, as these may help you identify meaningful goals.
2. When you budget, notice your reaction when a setback or a mistake happens. Practice giving yourself (and your budget) grace around these things. Rather than seeing moments of non-adherence to your budget as “failure”, see them as “information” that can assist in providing direction on what needs adjusting.

Consider checking out WashU’s Enrich financial education platform. It is free of cost for employees and offers confidential on-demand educational resources, financial self-assessments, financial coaching, and stress management tools.

Guest author, Krista Jarvis, clinical case manager in the Department of Psychiatry, brings unique insights into the psychological aspects of money management.

When it comes to thinking about, discussing, and taking action regarding our personal finances, we may find ourselves feeling stuck. Perhaps we tell ourselves we don’t have the time to deal with it. We may decide there’s no sense in looking at things until a circumstance changes (when we earn more, or no longer paying for childcare, for instance). We may feel overwhelmed and uncertain where to start. For some, we may feel there isn’t anything more to do beyond what we are already doing to reach our financial goals.

As humans, we naturally resist change, even when it is in service to our wellbeing.  When we put off working on financial goals, it can be useful to examine what might be at the core of our hesitation. Considering what stops us from taking action can provide insight into what we need to move forward. We might realize that we need more information to inform money management skills. We may see that we could use coaching support, as getting professional feedback can offer us valuable new perspectives, or we may recognize that feelings of worry around money are holding us back, and could benefit from practicing stress reduction exercises.

Call to Action

Here are some reflection prompts for your condsideration:

1. Think about your current financial situation and financial goals. Do you feel good about where you are and where you would like to be financially?
   • If not, what comes up when you think about addressing things? What might you need in order to take a small step towards your goals?

Consider checking out WashU’s Enrich financial education platform. It is free of cost for employees and offers confidential on-demand educational resources, financial self-assessments, financial coaching, and stress management tools.

A Stepping Stone to Financial Security

Buying a home is a big financial step. But even if you aren’t sure if homeownership is for you, understanding the process can be helpful. Owning a home can be a path to building wealth, as you gain equity over time through mortgage payments and potential property value appreciation. Homeownership comes with responsibilities like property maintenance and repairs, but for many, the benefits of customization and stability outweigh the additional costs.

Call to action

Learn more about navigating the home-buying process in the Enrich course, Buying a home, and understanding mortgages. This 40-minute course will teach you the basics of navigating the home-buying process, beginning with assessing how much house you can afford. You’ll learn about getting pre-approved for a mortgage, different mortgage options, homeowners’ insurance, finding a real estate agent, viewing homes, and finalizing the purchase. Finally, the course wraps up with post-purchase financial considerations. 

Information shared in Enrich is confidential. WashU never receives your personal financial information.

Take Control of Your Finances

Financial concerns can be a significant cause of anxiety and stress, but they don’t have to be. Gaining financial knowledge can help you feel more confident and in charge of your finances, and it’s something that everyone can benefit from, regardless of their income level. With the right information and resources, anyone can improve their financial situation.

As we delve into the topic of financial stress, it’s crucial to recognize its effects on both mental and physical health. Here are six common symptoms of financial stress:

1. Anxiety and Worry: Racing thoughts about upcoming bills, fear of unexpected expenses, and dread when checking your bank account can keep you awake at night and distract you during the day.
2. Feelings of Shame or Embarrassment: Societal pressures to achieve financial success or personal expectations about where you “should” be financially may lead to feelings of shame or embarrassment.
3. Loss of Financial Control: Feeling overwhelmed and unable to keep up with your finances can erode your sense of control over money.
4. Avoidance: Some people avoid social situations where spending money is involved due to financial stress.
5. Irritation: The constant worry about finances can make you irritable and affect your overall well-being.
6. All-or-None Thinking: Financial stress may lead to extreme thinking patterns, where you perceive situations as either entirely positive or entirely negative.

Addressing financial stress is essential not only for your financial health but also for your overall well-being. By acknowledging its impact and seeking appropriate resources, you can take steps toward a healthier financial future.

Call to action

• TIAA Individualized Consultations
  Meet with our WashU/TIAA-certified consultants to develop a personalized strategy aligned with your goals. In a one-on-one consultation, you’ll get expert guidance on budgeting, maximizing benefits, growing wealth, protecting assets, and more. Walk away with an actionable plan to pursue the future you want. Take control of your financial story and schedule your complimentary individualized consultation. 

Dive Deeper

• To learn healthy coping mechanisms and explore strategies for financial security, visit our page outlining mental health resources.
• Explore the Enrich course, Managing Financial Stress. This 25-minute course discusses how financial stress can affect your overall well-being and explores the ways you can alleviate its impact on your life.

Information shared in Enrich is confidential. WashU never receives your personal financial information.

Demystifying Tax Prep

As the tax season looms closer, it’s time to ensure you have the knowledge and tools necessary to tackle tax preparation with confidence. Tax preparation is a crucial aspect of personal finance, regardless of your income level. It involves gathering all the necessary documents, understanding tax laws, and maximizing deductions to ensure compliance and potentially reduce tax liability. Proper tax preparation helps individuals fulfill their legal obligations and empowers them to make informed financial decisions, ultimately contributing to their long-term financial well-being. Whether you’re filing independently or seeking professional assistance, preparing for tax season is essential for financial success.

Call to action

Take charge of your financial future by proactively engaging in tax preparation now. Not only will you alleviate the stress of last-minute scrambling, but you’ll also potentially uncover valuable deductions and credits, putting more money back in your pocket come tax time.

• Log into your Optum Financial account and access the Tax Center to access your 2023 HSA or Dependent Care FSA tax documents.
• WashU tax documentation and timelines are available here.
• Read through the Enrich Start Here Guide, “Getting Started With Filing Your Taxes”.

Dive Deeper

WashU employees can take advantage of a comprehensive online course provided by Enrich, which aims to simplify the tax filing process and equip you with the knowledge you need. Discover how to navigate tax season like a pro with the Enrich course, which covers topics like:

• Learn important tax terms and definitions.
• Identify your taxable income with ease.
• Understand different tax forms and their purposes.
• Gain tips for avoiding common filing mistakes.

The best part is that Enrich saves your progress as you go, allowing you to work at your own pace and pick up right where you left off.

Information shared in Enrich is confidential. WashU never receives your personal financial information.

Financially prepare for the new year

As we begin a new year, it’s a great opportunity to evaluate your financial habits and gain valuable insights by conducting an annual budget review. If you’ve ever been curious about where your money goes or struggled to reach your financial objectives, there are resources available that can help you. A financial journal can be a powerful tool in this regard, allowing you to gain a better understanding of your spending habits and identify areas for improvement. By utilizing budgeting tools and developing a clear understanding of your finances, you can set practical and attainable goals that align with your long-term financial objectives.

Call to action

• Learn how to plan ahead with an annual budget review.
• Reflect on your finances and track your thoughts and mood with Enrich’s money mindfulness journaling hub.
• Awareness is the first step to smart financial decisions. Track your spending by downloading Enrich’s daily income and expense diary.

Dive Deeper

Whether you’re looking to save for the future, tackle debt, or have other financial goals, the Enrich platform has you covered with personalized recommendations, interactive tools, and self-paced courses on a wide range of financial topics.

Information shared in Enrich is confidential. WashU never receives your personal financial information.

More than just a name

A beneficiary is a person or entity that will receive all or a portion of the proceeds of your account(s) when you die. Naming a beneficiary for each of your financial accounts can eliminate confusion, save time, and help ensure the financial wellness of your loved ones.

Call to action: Review your financial accounts (including savings, retirement, life insurance, etc.) to ensure you have an updated beneficiary assigned. Common WashU accounts include:

• TIAA retirement account | Log into your account at TIAA.org/wustl. Under actions, select “Add/edit beneficiaries”
• Health Savings Account (HSA) | Log into Optum, select the “Tools and Resources” tab, then click on “Beneficiary Designation Form”
• Life insurance | View plan details and instructions

Dive Deeper

Enrich, WashU’s financial well-being platform, provides an informative overview of the importance of and different types of beneficiaries in Who Gets What? The Importance of Naming Beneficiaries (approx. 4-minute read).

Secure their tomorrow

Thinking about what happens to your assets when you die can be overwhelming or difficult to think about, but having an estate plan makes sure the things you worked hard for go to the people or organizations you care about. To get started, let’s break down the different documents you may want to consider starting or updating.

Estate Plan Overview

An estate plan serves as the legal framework through which your assets are managed and distributed after your death. A comprehensive estate plan typically includes:

• Last Will and Testament | A document specifying how your estate is distributed among your chosen beneficiaries.
• Living Will (Health Care Directive) | This document outlines your medical treatment preferences in circumstances in which you are no longer able to express informed consent.
• Trust | A legal entity holding asset ownership for designated individuals, bypassing probate and providing specific instructions for distribution.

Financial Tools and WashU Benefits

Supplementing your estate plan, consider these essential financial tools available through WashU’s employee Life and Income Protection benefits:

• Life Insurance | A safeguard ensuring financial support for your dependents in the event of your passing, offering security and stability.
• Long-term Care Insurance | Assisting in covering expenses linked to long-term care needs, serving as a protective measure against potential healthcare costs.

Call to action

• Think about your goals for any assets you plan to distribute, then put pen to paper. Work-Life Solutions offers discounts and resources for employees who wish to draft a last and/or living will.
• Review your financial accounts (including savings, retirement, life insurance, etc.) to ensure you have an updated beneficiary assigned. Common WashU accounts include:
  • TIAA retirement account | Log into your account at TIAA.org/wustl. Under actions, select “Add/edit beneficiaries”
  • Health Savings Account (HSA) | Log into Optum, select the “Tools and Resources” tab, then click on “Beneficiary Designation Form”
  • Life insurance | View plan details and instructions

Dive Deeper

Explore Enrich, WashU’s financial well-being platform, offering interactive finance courses, informative articles, videos and access to financial coaches. Log in to Enrich to access articles and videos (3-5 minutes each) covering estate planning and wills, and discover specific resources related to estate planning:

• Everything You Need to Know to Get Started with Estate Planning | Enrich’s comprehensive guide on estate planning tailored to your unique circumstances.
• Preparing an Estate Plan | This course explores the estate planning process and the role an estate plan plays in helping people prepare for the unexpected.

Elevate your coverage

WashU offers a comprehensive benefits program designed to support your overall well-being, helping you and your family thrive. The annual Benefits Open Enrollment period is your opportunity to make important decisions about your 2024 health, vision, dental, and life insurance benefits, and enroll or re-enroll in a Health Savings Account (HSA) or a Flexible Spending Account (FSA).

Call to Action

Empowering employees to customize their benefits package to suit their changing needs is a top priority. This ensures comprehensive coverage and financial security for both employees and their families. Consider using the following checklist when reviewing your benefits options:

1. Read through your benefits enrollment guide.
2. Review the step-by-step Workday enrollment guide.
3. Consider your dependents and verify they meet eligibility requirements.
4. Walk through all your options with personalized guidance, using our educational tool, ALEX.
5. Take time to review your beneficiary designations and update them if necessary:
   • Life insurance | View plan details and instructions on how to view/update beneficiaries.
   • TIAA retirement account | Log into your account at TIAA.org/wustl. Under actions, select add/edit beneficiaries.
6. Log in to Workday and complete annual benefits open enrollment annually.

Visit the Open Enrollment website to review the complete checklist and access the guides, resources, tutorials, and walk-through options with our educational tool, ALEX.

Dive Deeper

Enrich is WashU’s new financial well-being platform that offers interactive finance courses, hundreds of articles, videos and tools, as well as the option to work one-on-one with a financial coach. Get started with Enrich here, and check out these specialized courses:

• This Enrich course helps you make the most out of your health savings account and boost your financial health for the long term.
• This Enrich course helps you learn how health insurance protects you both medically and financially and develop the knowledge to assess your personal needs in a healthcare plan.

Navigating retirement resources | Your guide to a secure future

The world’s population of people aged 65 and over is growing more quickly than any other age group. Population aging is one of the most significant social changes of the 21st century, affecting virtually every sector of society. WashU provides tools and resources to help our employees in or near this age bracket prepare for retirement.

Call to Action

Retirement planning is crucial for your financial well-being in your golden years. As you prepare for this significant life transition, you’ll want to explore the following resources to make informed decisions:

1. Transitioning to Retirement event | Join John Russell, Ph.D., and the Society of Professors Emeriti for a peer-to-peer discussion on retirement. Learn about healthcare, finances, emeritus status, and the retirement timeline. View event details and register online. 
2. TIAA Resources
   • Pre-retiree webinars | Making a switch from saving to spending your retirement money is an important consideration as you think about your retirement goals. Join TIAA Financial Consultant Adam Reutzel to walk through “5 Steps to Creating Your Retirement Income Plan”.
   • 1:1 consultations | Discuss your financial goals with a TIAA Financial Consultant to discuss your financial goals. Schedule online for virtual or in-person meetings.

Dive Deeper

• This Enrich article explores common retirement savings mistakes and offers practical tips on how to avoid them.
• The Office of Human Resources provides resources to support your retirement transition, including a “Planning for Retirement guide (PDF)“.
• The Institute for Public Health presents the Harvey A. Friedman Center for Aging, whose mission is to advance a global society where people of all ages have maximum opportunity for health, security and engagement. Explore topics in aging, find out about events & meetings, or learn about their WashU for Life initiative.
• Curiosity never retires. The Osher Lifelong Learning Institute (OLLI) at Washington University is a membership community designed for curious learners aged 50+. 
• Thrive tip for managers | The Awardco platform allows us to create a memory book for retiring employees. It’s a great way to show appreciation for their hard work and dedication while promoting a positive workplace culture that values longevity. Check out a sample memory book and contact hrevents@wustl.edu for more information.

Your path to financial freedom

Managing student loans can be overwhelming, but WashU offers a range of valuable resources to help employees consolidate their loans, manage repayment options, and assess eligibility for the Public Service Loan Forgiveness (PSLF) program. Your journey towards better student loan management starts with these resources; use them to alleviate the complexities associated with student loans and pave the way to a more secure financial future.

Call to Action

These resources, available on the financial well-being hub, can significantly ease the process:

1. Savi: WashU has partnered with Savi and TIAA to provide employees and their family members with the opportunity to explore alternative repayment plans. These plans can substantially lower monthly payments and guide you toward eventual loan forgiveness.
   • SAVE Program: The U.S. Department of Education is offering a new income-driven repayment plan that is personalized for your specific financial situation. This plan can help to reduce financial stress and contribute to reinforcing your overall financial stability. View the SAVE (PDF) for program details, and visit the Savi site for assistance in navigating the program.
2. Enrich: This new comprehensive platform provides tools, resources, and personalized support. This combination of support can empower you to make well-informed decisions, establish a firm financial foundation, and confidently manage your student loans.

Dive Deeper

• Take a moment to review the crucial steps outlined in our article on preparing to resume student loan payments.
• This Enrich course explores how to repay your federal student loans effectively and successfully.

Prepare for life’s curveballs

Having emergency savings is important to protect yourself from unexpected situations. By consistently saving even a small portion of your income, you can build up a financial safety net to handle expenses like medical bills, car repairs, or job loss. This provides peace of mind and safeguards your overall financial stability without resorting to high-interest borrowing. It’s a smart and responsible approach to handling life’s uncertainties.

Call to Action

Have a look at WashU’s latest financial well-being platform, Enrich. Create an account using your WUSTL key, complete the “Check-Up” and “Money Personality” assessments, and browse through the various online articles, videos, and finance courses on offer.

Dive Deeper

• TIAA can help you manage your debt and figure out how much to save each month.
• This Enrich course explores how contributing to an emergency fund can set you up for financial success.

Plan ahead, retire in style

WashU and TIAA want to make it easy to manage your retirement account. Once you’ve logged into TIAA.org/wustl, you can:

• Change contribution amount | Select Change Contribution Amount from the Retirement section. Update the dollar amount or percentage for your contributions and the date to make your change effective.
• Change the investment of future contributions | Select Change Your Investments from the Retirement section, then Choose Future Investments, then Make Changes. Choose each account or contract to update, then enter investment instructions.
• Transfer assets among plan investment options | Select Change Your Investments from the Retirement section, then Exchange, then Make Changes. Choose each account or contract to update, then enter investment instructions.
• Update your beneficiary designation | Select Add/Edit Beneficiaries from the All Accounts section, and select Add New to make changes to multiple accounts or Edit Existing to update beneficiaries on a specific account.

Call to Action

Take control of your retirement by talking to a TIAA financial consultant (PDF).

Dive Deeper

Take a closer look at the retirement savings benefit offered by WashU and manage your retirement account with the help of TIAA tools and resources (PDF), accessible anytime and anywhere.

Spring clean your finances

The use of subscription services has been on a meteoric rise. For many digital platforms, a monthly fee is the only way to consume content. These streaming service subscriptions, subscribe-and-save discounts, memberships and of-the-month clubs, coupled with the ease of automatic bill pay, can add up to a lot of recurring costs.

Savvy consumers should conduct periodic audits of automatic subscriptions by reviewing credit and debit card statements and bank accounts or use tools, like credit card services or mobile apps to monitor subscription services. Some credit cards offer helpful features such as requiring cardholder approval before subscriptions renew, but they may not catch a price increase or a free trial conversion to a monthly fee. Subscription manager apps can help you track and/or notify you, but require sensitive information and sometimes require a fee subscription themselves, all for a service you could do yourself.

Call to action
Take inventory of all the memberships and subscriptions you have. If you have memberships or subscriptions you aren’t using, cancel what you no longer want or need, and put that money toward debt reduction or a savings goal.

Additional learning
Check out the Money Matters toolkit for tips to take some of the stress and worry out of financial planning, offered by Work-Life Solutions.