This Week in Your Wallet: Reduce Your Contribution to this $15 Billion Industry
Hi everyone! Can you believe it’s almost May? I’m spending the last few days of April in Montana, where I’m currently attending the Financial Security Summit hosted by AARP and the Montana Financial Education Coalition. And tonight I’m heading over to the Helena Civic Center to speak at the third annual ABWA Professional Women’s Event. If you’re in the Helena area, come say hi. But first, let’s talk headlines!
Excuse me, I pay how much?
Sure, those spring blossoms are pretty, but they’re also pricey if you’re prone to allergies. How much are you contributing to the $15 billion allergy business? Have you dared to do the math? I haven’t — but between my daughter and my husband I know we spend a bundle. But this Reuters reporter did, and found her family’s monthly contribution to be $100. Think nose sprays, antihistamines, tissues, co-pays and air filters – these allergy-related expenses add up fast.
And they’ll add up even faster when coverage plans from pharmacy benefit managers, like Express Scripts Holding Co and CVS Caremark Corp, stop covering the popular prescriptions. Which happens to be the case this season, according to Reuters. (For some of the big brands, head to the full article.) You can either brace yourself at the pharmacy counter, or look for ways to save. Here, a few from Reuters:
- Switch it up. You can switch to a similar, yet less expensive alternative medication, or opt for the generic version of the one you’re using now – both pending your doctor’s approval, of course.
- Invest in an allergy test. Before you buy anything, determine the root of your problem and spend more efficiently. For example, only invest in the top-of-the-line air filters if you’re allergic to pollen and mold. If you’re only allergic to dust mites, then it’s probably a waste of your money.
- Be proactive. Not reactive. With allergies, beat the blossoms to the punch, and start up the medication routine before you need to. The logic: A better defense will require less meds overall, which means less money out of your pocket.
- Go pills over liquid. Liquid medication generally costs more than pills, but I know that doesn’t mean anything to your timid five year old. Teach your kids to swallow pills with Tic-Tacs. For more tips, read the full article.
America’s money-smart states
As April comes to a close, so does Financial Literacy month. Not surprisingly, I’m for making it a year-round initiative (and making education mandatory), especially when America could use the class time. From our plastic-happy ways (we’ve racked up more than $73 billion in new credit card debt since 2012), to our lackluster budgeting (only 40% of adults adhere to one), there’s plenty of evidence showing room for improvement. Though some states score higher than others when it comes to money smarts, according to Wallet Hub’s report on The Most & Least Financially Literate States in America.
What does a financially literate state look like? To Wallet Hub, it looks like New Hampshire. As the No.1 most financially literate state in America, New Hampshire boasts the lowest high school dropout rate, has the least unbanked households in the U.S. and is in the top five for most sustainable spending habits. Moreover, it has the second lowest non-bank borrowing rate in the country. It also has a very active financial education effort, as I learned when I spoke at the Jumpstart conference there. See how your state stacks up here.
And if you’re looking to relocate…
Profitable places to live
There are nine cities where Americans are seeing more dollar signs post recession. As TIME reports, these nine cities have bounced back faster, and in some cases, even better, than before 2009. The top five cities where wealth is soaring are: New Bern, N.C., Nacogdoches, Texas, West Lafayette, Ind., Bridgeton, N.J. and Del Rio, Texas. In these cities, the median incomes increased by more than 15% between the three-year periods, 2007-2009 and 2010-2012. For more, head over to TIME.
Build your own wealth
Take a cue from your kids, and buy yourself a piggy bank. As USA TODAY reports, the piggy bank strategy is a timeless and effective way to save. Be it for wealth, retirement, or your next vacation, all of these lofty goals can seem unreachable. Enter: The porcelain pig. The piggy bank serves as a symbol for saving consistently to reach a goal. You can break down the lofty goal with small goals, like saving X each day, or Y every week.
To piggyback on that statement (sorry, I couldn’t resist), the jar also supports the lesson: The best time to save money is when you have it. We often send children straight to their jars after giving them change, when more often than not, we don’t do the same. It’s easy to lose sight of this lesson with bills to pay, and debts to repay. Yet, there’s something to be said (and much to be gained) by practicing what we preach. For more on the history of the piggy bank, read the full article.
Have a great week,
Jean
