Birmingham Public Library
Birmingham area K-12 schools re-opened from summer break over the past two weeks and college students across Alabama are now back on campus.
The ringing of the school bell signals the start of a structured day filled with learning and growth. Similarly, financial success often hinges on discipline and a well-organized approach.
Judy Woods, a certified HUD-counselor and financial coach at Operation Hope — located in the Birmingham Public Library downtown — has financial tips to help families succeed.
Here are a few ways to incorporate the school bell’s lessons into your financial behavior:
1. Set Clear Goals
- Educational Equivalent: Just as students have academic goals, setting clear financial goals can guide your actions. Whether it’s saving for a down payment, paying off debt, or building an emergency fund, defining these goals gives you direction.
- Actionable Tip: Write down your financial goals and break them into smaller, manageable tasks. Review and adjust regularly, much like a student would with their study schedule.
2. Create a Budget
- Educational Equivalent: Students follow a timetable to allocate time to different subjects. Creating a budget works the same way, helping you allocate your income to various expenses.
- Actionable Tip: Use budgeting tools or apps to track your spending. Consider following the 50/30/20 rule – 50% for needs, 30% for wants, and 20% for savings and debt repayment.
3. Prioritize Learning
- Educational Equivalent: Just as continuous learning is key in education, staying informed about personal finance is crucial. Financial literacy helps you make better decisions and avoid costly mistakes.
- Actionable Tip: Commit to reading financial articles, attending workshops, working with an Operation HOPE coach. The more you know, the better you can manage your money.
Embrace the Routine
Students thrive on routine, and so can your finances. Establishing a regular financial routine helps ensure consistent progress toward your goals. Here are some tips for students this school year.
1. Monthly Reviews
- Educational Equivalent: Regular exams assess a student’s understanding and progress. Similarly, monthly financial reviews help you evaluate your spending, savings, and overall financial health.
- Actionable Tip: Set a date each month to review your finances.( I have Money Mondays) Adjust your budget as needed and celebrate your progress.
2. Automate Savings
- Educational Equivalent: Homework is a regular part of a student’s routine, reinforcing learning and discipline. Automating savings ensures you consistently put money aside without having to think about it
- Actionable Tip: Set up automatic transfers to your savings account or retirement fund. Treat these transfers like mandatory homework – non-negotiable and essential for your financial growth.
Learn from Mistakes
Every student faces challenges and setbacks, but it’s how they learn and adapt that leads to success. Financial management is no different.
1. Analyze Failures
- Educational Equivalent: When students get a poor grade, they analyze their mistakes to improve, or can take a make-up exam. When financial setbacks occur, review what went wrong and how to avoid similar issues in the future.
- Actionable Tip: Keep a financial journal to track your spending habits and any mistakes. Reflect on what you could do differently and plan actionable steps to avoid repeating them.
2. Seek Guidance
- Educational Equivalent: Students often seek help from teachers or tutors when they struggle. Don’t hesitate to seek financial advice from experts. HOPE is available!
- Actionable Tip: Schedule a consultation with an Operation HOPE coach to get personalized advice. Many financial institutions offer free or low-cost services to help you manage your money better.
As the school bell rings in a new academic year, let it also be a reminder to refocus on your financial behavior and management. By setting clear goals, establishing a routine, and continuously learning and adapting, you can ensure your financial future is as bright as the new school year ahead.
Judy Woods is a Financial Well-being Coach available to help people begin the journey to financial stability and success. Make appointments with Judy Woods of Operation Hope by emailing judy.woods@operationhope.org or call (205) 478-0557.
