With all of the emphasis on stimulus checks, you may have missed some of the personal financial changes in the American Recover Plan. You may also want to know where the job market is going. What is planned for student loan debt? the urge for financial literacy; and a first for an IPO.
Efforts to increase financial literacy
You can see Americans at international sporting events and political gatherings shouting “US, US” and “We’re number one!” However, you don’t see proud parents and grandparents outside of schools singing, “We’re number 14!”
America’s financial literacy is declining
Fourteen is significant because this is where the nation ranks worldwide in terms of financial literacy. In fact, only 57 percent of Americans are financially savvy, according to a Standard & Poor’s survey.
The lack of financial literacy among Americans has led an increasing number of states to employ financial education in schools. Today 21 states require that personal finance be taught in high school. That’s an increase from four states since 2018. Florida dropped its financial literacy requirements but kept a personal finance elective.
To make matters worse, financial literacy is decreasing. Only 34 percent of Americans answered four out of five personal finance questions correctly in 2018 Regulator for the financial industry (FINRA) survey. That is eight percent less than in 2009.
Students from low-income families suffer the most. The Economic Education Council is a non-profit organization that promotes financial literacy. It found that in states with no compulsory financial education, poor students had much less access to financial information than wealthier students.
Research by a University of Montana study indicates that students who had a financial education in high school make better financial decisions. This research shows that these students have less academic and personal debt.
Student loan forgiveness
Next, we’ll look at some of the lesser-known elements of the relief plan that was passed last month. But first let’s take a look at the provisions for something that has been excluded from the law.
Student loan forgiveness was not part of the American bailout plan. However, Section 9675 of the Act makes student loan granting tax-free from 2021 to 2025.
That’s great, you say. But if my student loan isn’t going to be available, what’s the big deal?
The big thing is this. Tax-free student loan issuance is the first step in obtaining loan approval. It is the horse that has to come before the cart. What’s next after it’s in place?
The Sunday edition of Saving Advice examines the latest in the quest for student loan forgiveness.
More than a stimulus check
Everyone knows the American Rescue Plan Act The bill, signed by President Joe Biden last month, gave most Americans a stimulus check. However, you may not be familiar with some of the other aids that are offered. Here is a quick overview.
Increase in tax credit for children
The main takeaway here is this this tax credit increased from $ 2,000 to $ 3,600 for each child under six and to $ 3,000 for each child between the ages of six and 18. The benefit applies to couples earning less than $ 150,000 per year or single parents earning less than $ 112,500 per year.
Another important change is that the child tax credit will be sent directly to families on a monthly basis. Previously, parents had to wait for their tax refund to come in to receive the money.
“This change will allow families in trouble to get financial assistance now,” the Treasury Department said, “instead of waiting until the 2022 tax season to get the child tax credit.”
Block grants for schools and childcare
The law determines $ 130 billion Reduce class size, improve ventilation, purchase personal protective equipment, and other measures to safely open schools K-12. Another $ 40 billion is earmarked for childcare and $ 1 billion for Head Start.
College students have access to $ 40 billion in emergency financial aid.
Homeowners and tenants
The moratorium on evictions and foreclosures ended on March 31st. The law does not extend this prohibition. However, funds are provided to help you hold it in place a roof over your head and turn on the light.
The bill gives homeowners $ 10 billion and tenants an additional $ 21.6 billion.
Funds can be accessed through your state, territory, or tribal government to make criminal mortgage payments. State, territorial, and local governments will also manage the money for rent and utilities.
Unemployment and COBRA
Unemployment benefit of $ 300 per month will be paid through September 6, 2021. That’s $ 100 less than originally suggested. However, a surprising tax break makes the $ 300 plan more beneficial.
The first $ 10,200 in unemployment is paid tax-free. If you paid unemployment benefit tax in 2020, you can get those funds back when you file your 2020 tax return.
COBRA gets a full subsidy. So you can stay on your employer’s health plan until the end of September.
The Supplemental Nutrition Assistance Program (SNAP) will be topped up until September 30th. A little more than $ 2 billion goes into food aid. An additional $ 490 million will be used to increase cash vouchers under the Women, Infants and Children (WIC) program.
Help for business
Companies will receive $ 7.25 billion to cover payroll and other expenses as part of a top-up payroll protection plan (PPP). One change is that nonprofits are now included in PPP.
Restaurants and bars receive additional help. $ 25 billion will be set aside to cover payroll, utilities, rent, and other operating expenses.
Public health and safety
You can’t see it in your personal finances. But state and local governments have incurred more costs as a result of the pandemic. They also lost tax revenue.
To help, the law allocates $ 350 billion to state, territorial, and tribal governments.
“In addition to helping these governments cope with the lost revenue they suffered as a result of the crisis,” said the Treasury Department, “it will help them recover the costs of responding to the public health emergency. and support for a restoration. “
The new job market
When unemployment drops to 6 percent, you can optimize your resume. New jobs will open up, regardless of whether you rejoin the workforce or make a career change.
The employment picture after COVID will look a little different than before. For example, most economists were surprised that 110,000 new construction positions were part of the 916,000 jobs added to economy last month.
In addition, the Biden administration has proposed a comprehensive infrastructure plan that could create all kinds of jobs in different areas.
Health, technology and green
Most employees for 2021 and beyond will be in technical, medical and green jobsaccording to the US Department of Labor. Among the top ten jobs, Labor includes six or in the list of fastest growing careers. The other four are wind turbine service technicians, solar installers, statisticians and information security analysts.
Before the pandemic, there was a serious shortage of skilled workers in rapidly growing areas, according to American Action Forum (AAF) report. As the economy reopens, this shortage will increase again.
“This study estimates that employers in almost every state will face a significant shortage of associate degree or college workers over the next decade,” wrote AAF analysis Tom Lee in 2019.
For your information on Coinbase’s IPO
Mark your calendar for April 14th. A history is created on this day.
Coinbase Global, the largest cryptocurrency exchange in the US, will go public next Wednesday. It is the first major crypto company to go public.
Bitcoin is traded on the Nasdaq and listed under the symbol COIN. However, the company will not follow the traditional IPO route. Instead, current investors will convert 114.9 million shares for offering to the public. This practice is known as a direct offer.
W.We’ll be following Coinbase The Wrap for the next few weeks
Coinbase offer price
Coinbase plans to announce its reference or opening price the day before going public.
The company released a flush results report on Tuesday. It was announced that earnings for the first quarter of 2021 exceeded earnings for all of 2020. Revenue of $ 1.8 billion resulted in profits of between $ 730 million and $ 800 million for the first three months of the year Coinbase report.
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