As we navigate the ongoing effects of the pandemic on our finances, it's vital to stay informed about upcoming changes that may affect us.

This Week in Your Finances: A Moment for Patience.

Are we experiencing the peak of summer yet? It certainly feels that way. The heat is palpable, and I find myself reminiscing about my late dog, Teddy. I'm eagerly waiting for the sound of playful paws around the house. For now, I'm the person at the park asking to pet your dog. So, patience is key.

We could all use a little more patience as we face the ongoing uncertainty surrounding the pandemic.

Just when many were preparing to return to the office and thinking about their new routines, the situation shifts again. Amazon has delayed its return until January, while CNN has pushed its timeline to October, among others. When employees do return, various masking policies will be in effect. According to recent reports, companies like Bank of America and JP Morgan are enforcing mask-wearing in shared spaces. As Warby Parker's co-CEO pointed out, we're back to a state of unpredictability that mirrors last year. It's frustrating, but we must take a moment to breathe.

Student Loan Payment Resumption

The federal pause on student loan payments, initially set to end in September, has been extended to January 30. This marks the final extension, as stated by the Department of Education. What should borrowers of federal student loans anticipate?

Mark February 1 on your calendar. That's when payments restart. Before that date, expect communication from your loan servicer detailing the necessary steps to resume payments. If you haven't heard from them by the holidays, take the initiative to reach out, and don't forget to update your profile at studentaid.gov. If you anticipate difficulty making full payments, consider an income-based repayment (IBR) plan, which adjusts monthly payments based on your earnings. You can use a calculator at studentaid.gov to estimate your IBR payments.

The Ups and Downs of Saving

If you retained your job throughout the pandemic, received stimulus funds, and adhered to social distancing, you likely saved some money. Many have managed to save thousands, while others have reduced high-interest debt, improving their financial situation as we move toward 2022.

However, the challenge with these savings is finding ways to protect them without incurring losses. It's increasingly likely you could end up with less purchasing power due to inflation. For instance, if your savings account earns .1% interest while inflation rises by 4%, you're effectively losing 3.9% of your purchasing power. Although inflation rates may not remain this high, the reality for savers is disheartening, as noted by The New York Times. The stark choice for savers is clear: invest in safe assets with a high chance of losing purchasing power or take risks with potentially higher returns but also the risk of losing money if the market declines.

So, what should dedicated savers do? It depends on your goals. If you're saving for a home down payment in two years or tuition in three, consider a certificate of deposit or Treasuries. You'll still lose some purchasing power, but less than if you keep it in a standard savings account. If you don't need the money immediately, investing could be an option, but paying down high-interest debt is worth considering. The higher the interest rate, the better the return on your investment. With inflation looming and interest rates low, even lower-rate debt repayments can become appealing, as pointed out in financial literacy discussions.

For Those Already Financially Savvy

Hey, it's time to share your knowledge with the younger generation. Here's how to do it. And don't forget to send me those adorable puppy pictures; I can't resist them!