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Financial Well-being

Financial well-being is an important part of your overall personal well-being.

Being financially well means you can meet your current and ongoing financial obligations, feel secure in your financial future, and are able to make choices that allow you to enjoy life – in other words, financial freedom.

However, data shows that personal finances continue to be a leading cause of stress for many Americans. Financial stress occurs when there is uncertainty around finances, a sense of worry about the future, and a lack of security. Like most types of stress, this can impact your:

Ability to sleep
Physical health
Emotional health
Relationships
Performance at work
Family life

If you have or are currently experiencing financial stress, you’re not alone – there are many resources and professionals available to help. Getting to a place where you are financially well takes time but it’s never too late to start thinking about your finances.

post-it note with "We can help" written on it.

MHealthy Resource Coach Program

The MHealthy Resource Coach Program is a free, confidential service for all U-M faculty and staff. If you are experiencing a financial crisis or other personal hardship, our Resource Coaches can connect you to community and local resources.

Learn more about the Resource Coach Program

someone stacking coins

Money Moves for a More Prosperous 2025

Fidelity and TIAA, U-M’s longtime partners in administering its Retirement Savings Plans, can help you end the year smartly for a prosperous 2025.

Go to the Money Moves UHR News article

red bucket containing money

CEW+ Financial Empowerment Workshops

Presented by Center for the Education of Women +, this free, in-person workshop series addresses the social and emotional factors impacting financial decision-making behaviors and the alignment of those behaviors with long-term goals. Dinner provided!

View CEW+ workshops and register

a jar full of pennies with a plant growing out of it

Find Out Your Financial Well-being

If you’re not sure where to start, the Consumer Financial Protection Bureau developed a questionnaire to measure your current financial well-being. You'll get a score, see how your score compares to others and see steps you can take to improve it.

Go to questionnaire

green financial well-being petal from U-M's model of well-being highlighted

Financial Resources on the MHealthy Portal

The MHealthy Portal includes Path to Wellness and Knowledge courses focused on financial well-being. Available to benefits-eligible employees and their health plan enrolled spouses/OQAs.

Access financial resources on the MHealthy Portal

Financial Well-being Resources, Workshops and Support

Need Help?
It may be difficult to talk about financial struggles, but taking small steps can help change your financial future. It’s important to remember that you’re not alone. Resources and services are available to help you navigate a financial crisis:

One-on-one, confidential assistance is available to you through MHealthy’s Resource Coach program. Get help with locating the right resources at U-M and in your community for finding food, meeting basic needs and more. In some cases, financial support is available to cover an urgent financial need.

Need help with food, housing, or paying bills? Need support in a family crisis or community disaster? Michigan 2-1-1 is a free-to-use, confidential service that connects you with local community-based organizations across the state offering thousands of different programs and services for people seeking answers.
2024 Virtual Workshops: Your Money Matters Series
MHealthy has partnered with U-M Credit Union to offer the following virtual workshops to the U-M community.

*If you need accommodations to participate in the workshop, please email Leola Hearing, [email protected], 7 days prior to the workshop.*

Feb. 28: Create Your 2024 Money Game Plan Workshop

Led by Mark Munzenberger, financial education manager for University of Michigan Credit Union, this fun and engaging workshop will cover the top five steps you can take right now to boost your financial outlook in 2024.

Date: Wednesday, February 28, 2024
Time: 12-1 p.m.
Presenter: Mark Munzenberger, Financial Education Manager, U-M Credit Union

Access slides from the Feb. 28 workshop.

April 10: Save for Your Future Workshop

Sometimes the smallest actions have the largest impact – and that includes building the habit of savings. In order to be a successful saver, we need to have a strategy in each of these key categories:

Saving Automatically

Saving For The Unexpected

Saving For Major Milestones

Paying Down Debt Is Saving

Saving At Any Age

This workshop will provide guidance and direction in language we can understand, and whether you are one year or 30 years from retirement, you’ll leave feeling better about your options moving forward.

Date: Wednesday, April 10, 2024
Time: 12-1 p.m.
Presenter: Mark Munzenberger, Financial Education Manager, U-M Credit Union

Access slides from the April 10 workshop.

May 21: How to Be Credit Healthy Workshop

Credit plays such an important role in our overall financial picture, especially when interest rates have been on the rise for the past few years. Many people need and use credit to purchase important items and services – the key is to borrow responsibly and always understand the terms. While credit can be an important component of building wealth, it can lead to trouble if not handled wisely. This workshop will help you understand the do’s and don’ts of using credit, and also help crack the code of credit reporting and scoring.

Topics covered:

What areas of our lives does credit impact?

Credit cards – friend or foe?

Credit reports – how to access for free and what to look for

Credit scores – your financial G.P.A.

Credit and the cost of borrowing money

Date: Tuesday, May 21, 2024
Time: 12-1 p.m.
Presenter: Mark Munzenberger, Financial Education Manager, U-M Credit Union

Access slides from the May 21 workshop.

Nov. 20: Money Matters - Finish the Year Strong Workshop

When it comes to our personal finances, the status quo can often be the comfortable place to be. However, there are times when change is needed so that we are doing what we need to do to reach our goals, build wealth, and prepare for retirement. This workshop will provide some actionable tips and suggestions for finishing out 2024 strong and building a strong foundation for a successful 2025. We will cover:

The recent decline of interest rates and what it means for borrowers.

How technology can help you manage money easier than ever.

With financial fraud continuing to impact consumers across the country, you will learn what actions to take to better protect yourself and hopefully avoid becoming a victim of a financial scam.

Date: Wednesday, November 20, 2024
Time: 12-1 p.m.
Presenter: Nicole Bernacik, Financial Education Specialist, U-M Credit Union

Access slides from the Nov. 20 workshop.
Tax Prep Assistance for 2023 Filing
If you’re worried about the cost of preparing your taxes, resources are available to help:

The United Way works to connect southeastern Michigan families with Volunteer Income Tax Assistance (VITA) programs through its partners, the Wayne Metro Community Action Agency and the Accounting Aid Society. These programs offer free virtual tax preparation for 2023 returns.

The IRS offers free basic tax return preparation to qualified individuals.

The IRS also offers IRS Free File, which uses guided prompts to lead you through online tax preparation. You file your federal and state returns through an IRS partner site or Free File Fillable Forms.

The Tax Counseling for the Elderly program, available to those age 60 and older, specializes in questions about pensions and retirement-related issues unique to seniors.

The Volunteer Income Tax Assistance (VITA) program, is available to those who make $64,000 or less, who have disabilities, or who speak limited English.

AARP Foundation Tax-Aide provides tax assistance to anyone, free of charge, with a special focus on taxpayers older than 50 with low to moderate incomes.

Employees (of any age) making less than $64,000 can contact the University of Michigan Housing Bureau for Seniors at 734-998-9341 to schedule an appointment for free tax income tax preparation.

Accounting Aid Society has no-cost tax preparation services for households making less than $64,000 a year. Appointments are encouraged. To make an appointment, call 313-556-1920 or schedule online.
The Basics of Financial Literacy
What is financial literacy?

Financial literacy means having a basic understanding of how to handle money matters like saving money, paying bills, debt management, investing, etc.

Financial well-being begins with understanding how to manage your money. Boosting your financial knowledge increases your ability to make good financial decisions for you and your family.

Self-assessments – measuring your financial health

If you’re not sure where to start, this resources can provide you with a snapshot of your financial well-being:

Consumer Financial Protection Bureau Measurement Tool

Six core areas to becoming financially literate:

Budgeting to manage your money

Paying bills and saving money

Basics of debt (mortgages, credit cards, etc)

Credit history and credit scores

How investing works (401k’s, the stock market, etc.)

Setting financial goals

Helpful resources:

Consumer protection basics… plain and simple (consumer.gov)

United Way - Financial Navigation Program (Washtenaw County program)

My Money Five (mymoney.gov)
Managing Your Money
It’s important to understand your financial situation and what expenses need to be met. This will help to keep you from falling short, make it easier to make informed decisions on how to use your money, and reduce stress.

Some people feel overwhelmed by the thought of money management. Though it may take time, it does not have to be complicated.

Tips and resources to help you manage your money:

Creating a Budget – Reviewing your finances periodically or creating a budget is always important, but especially if your financial situation is changing. It’s an opportunity to assess how much money is coming in each month, prioritize your bills (mortgage/rent, utilities, groceries, etc.), and if needed, consider eliminating non-essential expenses.

These five steps can help you create a budget to manage your finances.

This fillable PDF helps you make a simple, one page budget to see where your money is going at a glance.

Budgeting Technology – Mobile apps are a convenient way to manage your money. You can find free or low-cost budgeting applications are available to help to help with budgeting, working toward your financial goals, paying bills and more. Before using any app, do your research to make sure it is reputable and safe. Here are some great and affordable apps (note, some required a subscription):

You Need a Budget

PocketGuard

Every Dollar

Save for Emergencies – Having money set aside for unexpected events such as a lost job, illness or car repairs means you won’t have to break your budget to cover these. How much you save can depend on how much extra money you have available. Save what you’re able but as a general rule, it is recommended to put at least 10% of your income into emergency savings each month. To learn more about emergency funds, view this essential guide to building an emergency fund from the Consumer Financial Protection Bureau.

Protect your identity and money – Beware of scammers who use fear and uncertainty to prey on people.

View this article on how to avoid scams and COVID fraud

Phishing and scams have also been reported by members of the U-M community.

Helpful resources:

7 Steps to Manage Your Money (U.S. News and World Report)

The best budgeting apps in 2020 (cnet.com)

U-M Credit Union Videos:

One-minute video: Where should I keep my emergency fund?

One-minute video: How much should be in my emergency fund?
Managing Your Debt
The average U.S. household owes more than $138,000, according to the Federal Reserve Bank of New York.

Debt comes in many forms – mortgage payments, car loans, school tuition, student loans, credit cards, medical, tax – are just a few examples.

Nearly everyone has debt. However, it’s important to be able to manage your debt so you are in control and can build good credit.

Tips for managing debt wisely:

Know exactly what you owe, and who you owe. This will help you never miss a payment. The best way to do this is to obtain a copy of your credit report.

Know how much your debt costs you. Lenders loan money and almost always get more back than what was borrowed – through interest. The higher the interest rate, the more money it takes to repay your debt. Also, longer repayment terms mean you'll pay back more money in the end, even if your monthly payments are smaller.

Make payments on time every month. If you don't pay at least the minimum payment each month, your creditor could charge a late fee and may report your late payment to the credit bureaus. This damages your credit score. If you are unable to make payments on time, talk to your creditors about what options are available to you.

Borrow only what you can afford. A general rule of thumb is to spend no more than one-third of your income on debt—including mortgages, credit cards, and loans (e.g., car loans, student loans, and lines of credit).

Helpful resources:

National Foundation for Credit Counseling (NFCC)

Consumer protection basics… plain and simple (consumer.gov)

Coping with Debt (Federal Trade Commission)

Public Service Loan Forgiveness (PSLF) Program (links to information from U-M Shared Services Center)
Understanding and Improving Your Credit Score
Your credit score and credit history play an important role in your financial well-being. Your credit history is summed up in a three-digit credit score, which:

Lenders use as a risk factor in determining your ability to pay back a loan.

Helps lenders determine whether they will loan you money towards buying a home, purchasing or leasing a car, approving a credit card, and more.

Landlords use in reviewing rental applications

Helps to determine your interest rate on a loan. Lenders typically charge a higher interest rate if you have a low credit score, costing you more money over the life of the loan. Improving your credit takes time, but the sooner you start, the faster your credit scores will improve.

Tips for improving your credit score:

Pay your bills on time, every month. Late payments have the biggest impact on your credit score. Missing one payment can damage your score immediately.

Set a reminder to pay a few days before the payment is due, or consider setting up automatic payments on your bills.

If you are not able to make payments on time, contact your creditors before they contact you. Don’t wait until you’ve missed payments. It’s a better idea to be proactive and reach out to your creditors to explore options such as hardship programs, loan deferments, reduced interest rates, and balance transfers.

Reduce your credit card debt. How much credit card debt you’re carrying is the second-biggest factor influencing your credit score.

Try to use 30 percent – or less – of your total available credit. In general, the lower your spending on each credit card, the better your score.

Review your credit report. It’s important to check your credit report regularly for errors and dispute any errors you find.

Your credit is maintained by three major credit reporting companies – TransUnion, Equifax, Experian. By law, you can get a free copy of your credit report from each company every year.

If you see any negative information that shouldn’t be there, contact the credit reporting company and the creditor immediately. Read this article on how to dispute errors on your credit report.

Helpful Resource:

U-M Credit Union: How to Build and Maintain a High Credit Score
Setting Your Financial Goals
Setting financial goals is an important step toward becoming financially secure. Your goals can be long or short. Maybe you want to save money for a down payment to purchase a house, pay down credit card debt, pay for a wedding, go on a vacation, or buy a car. Regardless of your goal, you will need a plan to achieve it.

Short-term financial goals:

Short-term financial goals help you stay focused and keeps you on track to achieving longer-term goals. Having money set aside acts as a safety net for unexpected events such as an illness or car repair.

Tips for achieving short-term goals:

Create a budget. This will help you assess how much money is coming in each month, prioritize your bills (mortgage/rent, utilities, groceries, etc.), and discover where you could possible save. Get started with this fillable budget PDF.

Write down your goals. This can keep your objectives clear and get you motivated to achieve them. A good tool to creating goals is using the SMART method. Your goal should be Specific, Measurable, Action-oriented, Realistic and it should have a Timeline.

Create an emergency fund. Don’t let your goals get derailed by an unexpected expense. Have money set aside acts as a safety net for unexpected events such as an illness or car repair. How much you save can depend on how much extra money you have available. Save what you’re able but as a general rule, it is recommended to put at least 10% of your income into emergency savings each month.

Long-term financial goals:

Long-term goals typically take several years to accomplish and require longer commitments and often more money. Examples might include buying a home, saving for a child’s college tuition or saving for retirement.

Resources for long-term planning:

Retirement planning at U-M:

TIAA and Fidelity: Access investment services, free one-on-one meetings and retirement planning from one of the university’s authorized retirement savings investment companies.

Attend a live webinar: TIAA's interactive sessions are designed to give you practical, useful information on personal finance and long-term investing. Visit the Live Webinar Lounge to register. Adobe Flash may be required.

Planning for Retirement: Learn about how to determine when you are eligible for retirement, what happens to your benefits in retirement, and your income options in retirement

Social Security Retirement - You can never be too early or too late when it comes time to planning for a secure retirement. There are many factors to consider when making that monumental decision and one of them is Social Security. We know that navigating a government program can be overwhelming, intimidating and daunting. However, you will be amazed at how easy it is to work with Social Security, to navigate their planning resources, get your questions answered and utilize the online tools to ensure you make the right decision.

filing strategy options when it comes to spouses and divorced spouses benefits

key factors to consider when determining the right time to file

how you can work and collect benefits at the same time and how and when to file the application

how your decision on when to file for retirement benefits can affect widow(er)s benefits

learn about Medicare - when you must have it and when you don't need it

Helpful resources:

52 Week Savings Plan (NerdWallet)

Need to save up for college? Stay motivated with these three tips (Consumer Financial Protection Bureau)

Financial inTuition Podcast (Consumer Financial Protection Bureau)

Plan to shop for your auto loan (Consumer Financial Protection Bureau)

Preparing for a Baby? Tackle These 15 Financial Tasks (NerdWallet)

People with Debt (National Foundation for Credit Counseling)

U-M Credit Union Videos:

The Three Buckets of Savings

One-minute video: How do I get started with saving?

One-minute video: How to save consistently

One-minute video: How to I organize your savings
Additional Financial Resources
Well-being at U-M: Financial well-being is one of the eight dimensions included in University of Michigan’s model of well-being.

United Way – Financial Navigation Program

PNC Bank and the U-M Credit Union: Customers can access resources available through U-M’s partner financial institution, including financial planning resources.

Public Service Loan Forgiveness (PSLF) Program: Federal loan forgiveness program available to individuals with federal student loans and are also working for a government or not-for-profit organization.

Uniquely Michigan Deals: MCard deals and discounts available for faculty and staff.

University and Community Resources: Resources for financial assistance, housing, transportation assistance, debt counseling and more.

Choosing Your Financial Planner: Tips for finding a financial planner who’s right for you.

Getting the Most Out of Your Health Care: Tools to help you make smart and cost-effective health care decisions.

The racial wealth gap: The racial wealth gap in the United States is the disparity in median wealth between individuals of different races. Addressing systemic disparities in educational opportunities and barriers to economic mobility are named as strategies to closing the wealth gap.

MHealthy acknowledges the disproportionate ways people of color, and African-Americans in particular, have and continue to be disenfranchised and denied access to wealth-building opportunities in the United States. Given that financial well-being is one of the dimensions that MHealthy cares about, the racial wealth gap is a health equity issue that we are committed to raising awareness of. Below, you will find organizations, leaders and resources that are leaders in closing the racial wealth gap.

Learn more and find a resource:

Find more information on the wealth gap from the Federal Reserve.

This article explains how the racial wealth gap persists across generations.

BankBlackUSA is committed to leveraging the economic strength of Blacks in America, as a tool for gaining social and economic justice.

Clever Girl Finance® offers resources on financial well-being tailored for women of color.

This Forbes feature on BankBlackUSA offers an overview on the power of the platform.

Killer Mike, an American rapper and activist, shares a viral call to action to “Bank Black."

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