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Year-End Money Moves You Can Make Now to Start The New Year Right

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If you can believe it, 2020 is finally coming to a close. There are only four more days of 2020!

Time to make some money moves to improve your financial picture, both right now and in the future. Many people make new year’s resolutions to get more organized or “better” with money. Why not start a few days early?

A key recommendation: if you are able, make a $300 donation to your favorite charity before December 31. This year only (thanks to the CARES Act), taxpayers who do not itemize on their taxes can still deduct $300 of charitable cash donations. (Cash means that donations of goods or services, like clothing to Goodwill, don’t count). The IRS explains it here. 

Here is a list of ideas just to get your creative juices flowing. Tackle a few (or more) of these before December 31, and start the new year right.

See you in the new year!!!

Education

*open a 529 plan for your children’s education.

If your kids are already in college, you may already have a 529 or other college savings plan. A 529 plan is a tax-advantaged savings plan that can be for college costs (and in some states, K-12 private school tuition). Here is a good basic article on 529 plans.

If you do not yet have a 529, it may still be worthwhile opening one and putting money in that you intend to spend on tuition or other college expenses in the next year, anyway.

That is because over 30 states offer a state tax break for putting money into a 529 plan.

For instance, in Illinois (where I live), the first $10,000 of money going into a 529 plan reduces taxable state income by $10,000. And that is $20,000 for those who are (tax-wise, that is) “married filing jointly.” Because Illinois tax rate is a flat 6.25 percent, a family depositing $10,000 into a 529 would save $625 on taxes.

Here is an article detailing the states that offer tax deductions and some basic rules for getting the deduction.

Even if your children are nowhere near college age, consider opening a 529 plan. . If you open the plan that’s best for you (in Illinois, for example, that would typically be Illinois’ Bright Start plan), you can contribute just $5, and then develop a strategy for funding it later.

*Student loans: strategize 2021 payments to your student loans.

If you have federal student loans, you had a bonus in 2020. The federal government paused loan payments and interest accrual through January 2021.

Many have paused or continued payments for 2020, but thinking ahead to 2021 is worthwhile.

If you have private student loans, these federal rules do not apply. But either way, look at your student loan situation and research on good ways to pay them off. Student Loan Planner is a great resource.

Retirement

*Roth IRA moves.

Apparently (and surprising to me), I have not yet written a dedicated blog post on my favorite retirement savings vehicle–a Roth IRA. On my resolution list for 2021, you can bet!

Roth IRA suggestions fall into several categories:

*if you do not yet have one, open a Roth IRA. It takes just a few minutes to do so at a low-cost brokerage such as Vanguard, Fidelity, or Schwab.

*Add more money to your Roth IRA. If you have not yet contributed the maximum to your Roth this year (for those eligible: $6,000 for most, $7,000 for those over 50), now is the time to add some money if you are able. For instance, I have been nagging gently encouraging my children to add some year-end dollars to their Roth IRAs. 

*Help your kids open a Roth IRA (if they have earned income). If your children are under 18 years old, this may take a little longer, as you will have to open a custodial Roth IRA, but it’s still a relatively straightforward process. Your kids will thank you some day!

*Re-visit your employer’s 401(k) plan — are you optimizing? 

If your job offers a 401(k) or other such retirement savings plan, take some time to check to see that you are contributing robustly.

If you are able, max out these plans, or at the very least, contribute enough to get the “match” your employer offers.

To max out a 401(k) would be $19,500, with an additional “catch-up” amount of $6,000 for those 50 and older.

*Check Beneficiaries on your retirement accounts.

If you do not check the beneficiaries (who inherits the funds if you die) on your retirement accounts, do that ASAP and every year going forward. Read this article to learn why it is so vital.

*gather all your log-in information in one place.

Some of you reading this may think, “I do not even know how to log into my employer 401(k) plan.” or “Where are my old plans from previous employers?” Etc.

Consider this post your prompt to get more organized with your finances–do not wait for the new year! Start by locating all of your login information for any retirement accounts that you have, including employer 401(k)s, prior employer retirement plans, individual accounts, and others. While you are doing so, check that your passwords are strong, and different from each other (more on that below).

Giving

*Consider year-end giving. 

*If you do not itemize your taxes—

If you only have time for one item on this year-end list, strongly consider making a $300 charitable donation. That is because the CARES Act passed earlier this year allows even those who do not itemize on their taxes to deduct $300 in cash donations.

This will probably only exist in 2020, and it is a great opportunity for the 80-plus percent of taxpayers who do not itemize. If your income falls in the 24 percent bracket, that would save you another $72 on your taxes, allowing you to either give that much more to charity, or put that money to another use, like of your savings accounts. Read this IRS article for more on this great provision.

If you do itemize on your taxes—

You can still deduct the $300. In addition, if you have a windfall or some extra money around, consider opening a Donor-Advised Fund.

Learn more about Donor-Advised Funds here.

*spend some time setting up regular giving.

So many charities and churches greatly need donations. If you are in the habit of giving money to your church each week, or charities regularly, it is very easy to set up a direct deposit, ACH, or other recurring giving amount.

If you can give, it’s a great idea to finish the year strong in charity. If you need more reasons, learn why it is good to give.

Credit 

*Check your credit score and credit report.

This is just good money health practice. And it is much easier than in the past.

For instance, most credit card statements have a tool called something like “Credit Journey” (Chase) or “Your FICO Scorecard” (Discover). This tool shares your credit score or any changes. This feature is how I discovered that I was a victim of identity theft, and what I did as a result.

*Get clear on your credit card debt.

This article walks you through ways to organize and pay off your credit card debt.

*look into refinancing your mortgage.

Interest rates are at historic lows. It may make sense for you to refinance your mortgage if you have one, or look into buying a home if you have not yet. Here is a simple refinance calculator.

General Money Tasks

*Calculate your net worth.

Here is all about how to calculate your net worth regularly, and why you should. Even once a year is a good start. As you pay off certain debts, and save in various accounts, you will be pleasantly surprised to see your numbers improve.

*Set up or Re-organize your budget software.

We use YNAB. You don’t have to be perfect at this, but keep at it, and do not be afraid to retool your budget.

Create or update a “just in case” document for your loved ones.

If you are the person who handles money in your family, this is a priceless gift. There are innumerable workbooks, online tools, and products to help you do this. Many are great, but honestly? Just start a document on your computer with accounts, log-in information, lists of to-dos, and suggestions. Print it out and put it in your fire safe or safe deposit box, and make a resolution to update it quarterly or as often as you need it.

Open or “beef up” your Emergency Fund. 

Of the seven main kinds of “multiple money funds,” your emergency fund should rank number one. No one ever said, “My emergency fund is too big.”  Here are some ways to increase your emergency fund.

*Update your will or get a will if you do not have one. 

This is especially vital if you have minor children or dependents. 

*Check your life insurance coverage. 

Term life insurance is usually best. Lot of online tools to find low-cost life insurance policies for you.

Here is one: Haven Life. Haven offers both term life insurance and annuities. Most people should explore term life insurance only.

*Consider some side hustles to diversify or supplement your income.

*Make a list of 100 dreams and decide that you want to fund for 2021.

To some degree, many of us will travel again in 2021. Putting these trips (or other events) on the calendar or making spaces for them is a great idea.

For further reading and ideas: “You Need a Money Health Day.”

What you are doing for your year-end DIY. What else would you add to this list?

Four Ideas for Your CARES Act Stimulus Money

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Plan Ahead for Your Coronavirus Tax Relief and Stimulus Money

Some people have started receiving money direct-deposited from the stimulus plan– the IRS has details about the program here. Congress earmarked these funds in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress several weeks ago.

How much are people getting? It is $1,200 for individual tax filers, and $2,400 for joint tax filers, with $500 for each child. That amount begins to phase out for those with income above $75,000. Individual filers with an adjusted gross income (AGI) of $99,000, and joint filers above $198,000, do not receive any stimulus money.

If you expect some money, try this link at the IRS to check the status of your payment.

How are you going to use the money? Here are some thoughts:

  1. Make a Plan
  2. Two: Avoid Scams
  3. Support Local Businesses
  4. Consider Charitable Giving

1. Make a Plan

  • if you do not have a robust emergency fund, consider adding to it. There is no rule of thumb for “how much” you should have. At a bare minimum, having $1,000 set aside is a first step. I recommend clients add to this account $100 a month to this, ideally set up in an account that is easy to contribute to, but not easy to access. Here is a post on emergency funds: An Emergency Fund = Priceless.
  • For another, and humorous take on how to handle your stimulus money–the husband/wife team at Wallet Win have a super cute video called “Budget Your Covid Dough.” It’s a parody video song of “The Greatest Show” theme. I loved this line from it: “Include a few things you want, and everything that you need.” Nice!

Two: Avoid Scams

There are innumerable scammers out there trying to get their hands on this stimulus money, so it (literally) pays to be alert especially at this time.

Fortunately, there are quite a few resources from government sources to help avoid criminals:

  • Looking for a book to help you understand how fraudsters try to scam people out of money? Try Scam Me If You Can: Simple Strategies to Outsmart Today’s Rip-Off Artists by Frank W. Abagnale. This book, by the scammer turned FBI agent who wrote the autobiographical Catch Me If You Can, not only covers the seemingly endless variation of ways that fraudsters try to cheat money out of people. It also covers the psychological tricks that criminals use to get people to trust them, or feel a sense of urgency. 

I first read this book early in 2020, before all the pandemic news, but one quote I wrote down from is especially helpful during this time:  

“I believe we have to get back to forming strong communities where people know and look out for one another. A lot of fraud happens in isolation and online. If we look up from our electronic devices and limit our online time to specific tasks and goals, we will vie less prone to scammers online. We’ll also feel happier and less isolated.”

–Frank W. Abangale

This is even more true during this pandemic time—we can all continue to form communities, reach out to people in real life (even if, for right now, that is through phone calls, FaceTime, Skype, or Zoom).

Three: Support Local Businesses

There are so many ways to support local businesses during this time of shelter-in-place. Just a few:

  • *order takeout or delivery. A friend posted that her family is only getting take-out once a week during the coronavirus crisis for her family of eight, which means she is making the remaining 160 meals (!). First of all, kudos to her family for only getting takeout once a week. But what a cool idea, to add up the number of meals (total) your family eats in a week. Just the sheer number (it’s 105 for us, not including snacks) may have you consider this good way to support local businesses. [Over the weekend we got this “family feast” from Panera Bread. It was delicious, and we had leftovers.]
  • *buy online from local businesses. Ordering online from businesses, even if it is a little more complicated than clicking “buy now” on Amazon, will go a long way towards supporting the local economy.
  • *be friendly when you do go out. Wearing a mask out in public has made it a little more challenging to show friendliness (such as with a smile) during this time. But we can still greet people and be kind, especially to those working in stores. Being kind is free, friendly, and will make you feel a bit better.

Four: Consider Charitable Giving

Charities of all kinds are hurting in these days. If you are in a position to give more now because your job is stable–and you have a decent emergency fund–consider upping the amount going to your local church or charity.

  • *if you attend church, really consider giving more these days. Since church services are cancelled or online-only, churches are missing the typical way people give–through the passing of the basket. If you have not yet set up online giving, take some of the time we are stuck at home to set that up–and make it a recurring contribution. I write about ways to start that here in this post about online giving, and here about the benefits of a donor-advised fund.
  • Take advantage of one small feature of the CARES Act that promotes more charitable giving. This is for the majority of people who take the standard deduction instead of itemizing their charitable deductions. For those people, the CARES Act allows an additional $300 charitable deduction for individuals, $600 for joint filers. (I am frankly surprised this number isn’t higher). This is a great incentive to give a little extra this year, and have it cost you less than the amount you donate.
  • For example: if you are a married couple with an AGI of $60,000, a $600 charitable deduction will reduce your taxes by $132. This means that the gift is still worth $600 to the charity, but only costs you $468.

Do you have plans for the stimulus money? Any other tips for readers?

Promote Happiness: Create a List of 100 Dreams

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As I wrote last week, so much is changing in our world, almost on a minute-by-minute basis. As a result, this is as good a time as any to consider a great challenge for anyone to tackle, especially those wanting to be better with their money.

Your Challenge: Create a List of 100 Dreams

This idea is “borrowed” from Laura Vanderkam. She, it turns out, borrowed it from career coach Caroline Ceniza-Levine, so I feel in good company.

As Vanderkam writes  in All the Money in the World, a List of 100 Dreams is

“a completed unedited list of anything you might want to do or have in life. People start off with grand dreams, like visiting the pyramids in Egypt, but as we get closer to 100, of necessity we start brainstorming more everyday fonts of joy, like visiting an art museum an hour away, or having dinner with a close friend once a week.”

In some down time over the weekend, I opened up a new Trello board called “100 Dreams” and jumped in. 

It honestly astonished me how quickly (five minutes, tops) it took to list more than 40 things. I created semi-specific categories for myself: career; personal; fitness (mostly races I would like to run); domestic travel; international travel; book groups; dates (with my husband); and family dates.

After a total of probably 30 minutes, I have 91 items so far, and likely by the time I edit and put up this post, I will have the full 100 (update: 100 plus now!)

Benefits of a List of 100 Dreams

Vanderkam herself publishes a list sometimes related to a year. Here is part of her 2018 list, for example.

An unexpected benefit, Vanderkam says, of publishing the list: readers have given advice, or help, or helped set up some of the events, such as inviting her to speak at a location she would like to visit.

The benefit of reading someone else’s List of 100 Dreams is getting creative ideas flowing. I encourage you to take some time this week to create your own List of 100 Dreams.

So, with that in mind, here is a sampling of items from my 2020 List of 100 Dreams. I welcome advice on any of these items, such as places to stay, things to see, etc. (Anyone else interested in my Literary England pilgrimage?) Most of all, I hope that it helps you get started on with your own list.

2020 List of 100 Dreams

Career:

  • Write and publish a money book for moms 
  • Create and market an online course for high schoolers & above on starting a healthy money life
  • Attend FinCon in Long Beach, CA, this fall (cancelled); but there is a virtual one day FinCon and I will attend.
  • Start a podcast (several ideas percolating)

Fitness

  • Run the Oxford Half Marathon (again)
  • Enter and run the  Bath Half Marathon
  • Run a Hot Chocolate Race with one or more of my kids

Personal

  • Moms afternoon to do lettering with Katie Bogner (again)
  • Pysanky eggs
  • Teach kids how to make five meals (this could be five—or fifteen—items, with my three kids!)

Domestic & International Travel

  • Trip to Door County (again)
  • Trip to Maine & Acadia (again)
  • Whole family visit Florida
  • Visit Glacier National Park with family
  • Cruise/Rail to Western Canada & Alaska
  • Visit the Indiana Dunes now that it is a national park.
  • Trip to Seattle to visit a sister (cancelled due to coronavirus).
  • Organize & Lead a Literary England Trip—London, Oxford, Chawton & environs, Bath, maybe Lake District as well?
  • Girls Trip to Prince Edward Island for Anne of Green Gables sites
  • LOTR pilgrimage to New Zealand

Book Groups

  • Jane Austen Book Group reading all of the novels (currently Pride & Prejudice underway via Zoom—so much enjoyment here)
  • Anthony Trollope Reading Group
  • Continue Well-Read Mom Book Group (online for now)

Date Nights & Family Date Ideas

  • Axe Throwing plus dinner
  • Virtual double dates with other couples—desserts & drinks
  • Escape Room
  • Day Hike at local trails & picnic lunch/dinner
  • Day Trip to St. Louis
  • Day Trip to Chicago 

Creating this list during a global pandemic made this process go more quickly for me. It helped me to focus me on things I would love to do, but cannot do right now.

Or maybe next week’s challenge should be a List of 100 Dreams to complete during a global pandemic, so we can all can complete some of the items?

What is on your List of 100 Dreams?

Give Money to Charity? Why You Should Consider a Donor-Advised Fund

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Your challenge: consider opening a Donor-Advised Fund

What is a donor-advised fund?

A donor-advised fund (commonly known as a DAF) is essentially an online charitable savings account. It offers a way to give strategically– and often more generously –to charity.

A DAF “lives” at a financial services firm that administers it. When you open a DAF (more on that later) and contribute money, stocks, or other assets to it, you get an immediate tax deduction in the year you contribute. You can then donate the money out of the DAF at any time in the future, offering flexibility.

The three biggest, and lowest-cost, DAF administrators are Fidelity, Vanguard, and Schwab.

Who should consider a donor-advised fund?

A DAF is smart for anyone who gives a good amount to charity each year and can accumulate $5,000 (or more) to start one.

Here are some situations in which a DAF makes especially good sense:

*if you get a large windfall. (a bonus, inheritance, or other unexpected amount) and want to donate a portion or all of it to charity.

Rather than deciding on what charity or charities to donate it to, you can contribute it to your DAF. You can donate the money at a later time, even years later.

*if you want to itemize your deductions and reduce your taxes.

With the tax changes that took effect in 2018, itemizing deductions every year makes little sense for many people. That is because itemized deductions may not be above the $12,400 for an individual and $24,800 for married filing jointly. 

Here is a good basic article on the standard deduction, and pros and cons of taking it.

However, many people will be close to that “standard deduction” amount, especially when including charitable deductions.

If a person or family alternates their charitable contributions to every other year, they can use itemized deductions in one year and the standard deduction in the second, and so on.

This actually would help save on taxes, and allow for more giving to the DAF or charity. Read this article to understand more fully how “bunching” can help save on taxes and allow more giving over time.

Having the money in a DAF allows you to give more regularly to those charities directly from the DAF.

*you have stocks or mutual funds that you would like to donate.

If you have stocks or mutual funds in a taxable account, donating them directly into a DAF has significant advantages.

For stocks or funds in a taxable account that have gone up (appreciated), you can donate the amount, and avoid paying taxes on the capital gains. (The DAF, and therefor the charity, is exempt from paying capital gains, and that allows your donation to go farther). 

It is also much easier for a charity to receive money (cash) rather than shares of a stock or fund. You donate the stock to a DAF first, then the money to the charity. That simplifies bookkeeping for the charity.

*if you are a retiree taking required minimum distributions (RMDs).

Donating shares directly to a DAF is also an excellent strategy for retirees. Those over 72 are required to take minimum distributions from their IRAs or other retirement accounts. 

Those over 70 1/2 can donate up to $100,000 per year directly to the DAF, and entirely avoid taxes on both the contributions and any gains in the account.

How does a DAF work?

If you are interested in opening a DAF or how it works, here are some details.

First, open a DAF with a minimum contribution.

 The largest and lowest-cost providers of DAFs are the low-cost brokerages: Fidelity, Schwab, and Vanguard. I will focus on those.

(Our DAF is with Fidelity, since it offers the most flexibility for both contributions and grants).

Opening a DAF takes just a few minutes. You will need your social security number and the minimum contribution to open an account.

Once that is completed, you direct the money to be in a money market account, or a variety of stock funds.

Your contribution amount is immediately tax-deductible, but you do not need to give it away yet.

Where can I open a DAF?

Here are the three main financial services firms that offer donor-advised funds:

Fidelity Charitable

  • Minimum contribution to open account: $5,000
  • Additional contribution: no minimum
  • Minimum grant: $50

Vanguard Charitable

  • Minimum contribution to open account: $25,000
  • Additional contributions: $5,000
  • Minimum grant: $500

Schwab Charitable

  • Minimum contribution: $5,000
  • additional contribution: $500
  • Minimum Grant: $50

We have our DAF at Fidelity for two reasons: minimum contributions and minimum grants. Contributions are what you donate to the DAF (Fidelity’s is $5,000 to start). Grants—what you donate out of the DAF to charities require a minimum of $50.

When we set up the DAF, we put half of it in a money market account, and half in a conservative stock fund. Both have appreciated modestly, allowing us to give more.

How do you donate money from a DAF?

A donation from a DAF to your church or charity of choice is called a “grant.” 

When you are ready to grant money, you log into your account and add the charity/church. You can search for a charity by name or tax ID. You can also contact the charity for its tax ID or name for charity.

Once, I had trouble locating a local nonprofit that we give to several times a year. Its “charity name” was a little different from its local name. I could get the correct charity by reaching out to its director, who shared with me the tax ID number.

After you add the charity, you can grant money, either one time or recurring. So, for instance, you can have a check sent to your church weekly or monthly. That is just the same as you would write a check each week to put in the collection basket. You can also send a grant to a charity one time.

The helpful feature here is that charities stay on the DAF grant list. When you’re ready to grant again, the charities are already “in the system.”

Are there any disadvantages to a DAF?

Several:

*the money put into a DAF is irrevocably donated.

This is also true when you donate to a charity individually. It can seem a bit “scary” to donate such a sizeable amount to a DAF. However, if you give regularly to your church, consider a strategy. Add up the annual amount that you give and feel a little more secure that you will give the money to charity.

*you can let the money “sit” in the DAF too long. (this can risk you losing the funds if you wait too long.

Charities and churches can use donations all the time. But you are not required to grant money out of a DAF. Attempting to be consistent in granting money from a DAF is good practice.

With many DAFs, if you do not grant money for a long period, the DAF administrator can liquidate the account. (The administrator then puts the money in a philanthropic account). At Fidelity, the minimum is one $50 donation every three years to keep the DAF active. But as long as you donate regularly, this is not an issue at all.

Final thoughts and further reading

Overall, a donor-advised fund can be a wise strategy both for the person or family doing the giving. It is also great for the charities that receive grants from you.

For further reading:

Brief update and suggestions for current events

It has been a little over two weeks since the World Health Organization declared the Covid-19 crisis a pandemic, and the situation is rapidly changing every day. Early yesterday morning Congress & the White House reached a deal on a $2 trillion stimulus package, with help for businesses, It is expected to be passed within days.

The plan would offer direct payments to taxpayers, an extension of jobless benefits, and $500 billion in help for distressed businesses.

About 90 percent of taxpayers will receive the direct payments. For those with taxable income below $75,000, the stimulus measure will provide a $1,200 check, with an additional $500 per child. For joint filers with income up to $150,000, $2,400. The package phases out for those with incomes up to $99,000 ($198,000 filing jointly). Those above that level will get no money.

If you expect to be in that group, and do not need the money for immediate needs, I strongly suggest you use this windfall, or most of it, to start or increase your emergency fund.

You can read about why an emergency fund is priceless in this post.

I cannot imagine a better use than now to use most, if not all, of a windfall for emergency fund creation or expansion. Putting that money in an online bank that offers a decent interest rate so you can earn some money safely. Here are some suggestions about setting up an online saving account to get a decent interest rate.

What Should You Do About Your Money Right Now? Not Much.

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During these extraordinary days, it seems like so much is topsy-turvy. Here are a few ideas.

I love the story told of St. Charles Borromeo, the 16th century Catholic saint and priest, who was playing cards with two priest friends. Someone near them asked what they would do if they knew the end of the world were to happen within an hour.

One priest said, “I would run to Church to be with our Lord.” The other priest said, “I would call upon the name of the Lord.” St. Charles Borromeo said, “I would finish this game of cards.”

St. Charles’ answer showed his sense that, “anywhere you go, there you are.” If one’s life is well-ordered, whatever we are doing at the moment can be the right thing.

This is also true with personal finance. If you have set up systems and accounts in a way that is healthy for your goals and your time of life, you should do nothing different now than you were a month ago.

That does not mean you could be as cool-headed as St. Charles Borromeo, and simply play cards and ignore the news that is happening. It is healthy to be concerned about the drastic volatility in the stock market, the effect that the quarantines will have on the economy, or the genuine worries about what the coronavirus means for our families, our health care system and our world.

At the same time, try not to make any rash decisions about your money, whether that is in retirement accounts, a planned major expense, or anything else.

a great Instagram message from @iheartbudgets
another way to put it

What should you do instead?

Keep on doing what you were doing. Maybe you still feel you are disorganized with money or have not got it “all together.”

First, join the club. Just about everyone can see the need for improvement, especially during these uncertain days.

But, as I always say, and really mean, you are doing well with your money, and you can do better.

Therefore, take some practical steps to get organized and simplified with your money. Perhaps go back (or start for the first time) the weekly challenges in 2020: The Year of Clarity.

Back to 2020 The Year of Clarity

I considered pausing the yearlong series 2020 The Clarity Project, with all the extraordinary things happening in our world. But I am taking my advice and sticking with the program. So let’s go!

This Week’s “GIVE” Challenge: Automate Your Giving

With so many houses of worship cancelling services for the time being (the bishop of our diocese cancelled Masses through the end of March, and probably beyond), a drop in contributions is going to happen. But churches still need to pay employees, take care of their buildings, and fund other costs.

And it is likely that other charities, including soup kitchen and food banks, those who serve those on the margins, and others, are going to see a decrease in funds. Now may actually be the best time to consider this challenge.

Am I the only one who remembers fighting with her siblings to be the one who got to put the envelope in the collection basket at church each week?

I still like to bring the envelope when we go to church, but it has been a few years since there has been a check or any money in that envelope. Instead, we check off the “I give electronically” box. (And our kids are old enough that they do not fight to put it in, and I am actually a little nostalgic about that).

Giving online at most churches and charities is very easy. In this unusual time, it is not a bad idea to consider a onetime gift to local charities or others.

Still, setting up regular online giving might take a little more doing, but it is well worth it. Here are some steps to consider:

*check the charity or church’s website to see if there is a way to set up a re-occurring donation, either weekly or monthly.

*give the charity or church a call, or send an e-mail. When we set up our electronic giving, it took a phone call and a few e-mails with our church secretary.

If you need more convincing that you should focus on something other than following the news, here are a few resources to read or consider during this time:

Things to do instead of looking at your 401(k) or IRA balances

I have more ideas, but I am holding off on them for now.

14 Tasks to Declutter While You are Stuck Inside

On Digital Minimalism and Pandemics

Cal Newport makes a solid case for only checking the news once per day. It is not helpful getting constant updates on what is going on.

The Payoff of Giving with Intention: Why it is Good to Give

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Your Challenge: Be (more) Intentional with Your Giving

Cultivating intention in giving

If you are of a certain age, you will remember this. If you are not, consider it a trip down Your Money Mom’s memory lane...

We get little “snail mail” any longer, but when we did, we would receive dozens of requests per month asking for money. There would be a coin, or a holy card, or (oddly) a small blanket inside the envelope or package. And of course, there would be a pitch to encourage donations to the charity.

I cannot remember what a blanket had to do with a charity or why I should give to it, but I put the blankets in our dress-up box for the kids to use.

In the defense of the unsolicited gift-giving: at Christmastime there were often wall calendars, and some were lovely.

The most frequent “gift” sent by charities was return address labels.

I would dutifully save them to use while paying bills when we used to have to write out checks, put them in the return envelope, and mail them back. Doubtless that sounds positively 18th century to young ones reading this, but I promise you virtually all people were doing this just a few short years ago.

I would also save the labels for return labels for Christmas cards. (digression: since we do not receive these any longer, but we still send Christmas cards–and other cards–I use this label stamp I designed. A true time saver!)

Anyway, there was a time I would actually save all—or at least most—of the requests for money.

And then very occasionally, my husband and I would go through them and decide if we wanted to give money to the causes.

Over time, we developed a group of worthy and important charities to us. We would donate to these groups, usually during Lent and Advent, two times that are traditional for giving.

Phone calls, legit and not

I also remember receiving countless phone calls over the years from many charities. Some we had relationships with; some did not. Some are legitimate; many were frauds.

And like many people, my husband and I still receive occasional calls from our alma maters, with current students encouraging us to give to their campaign.

[In fact, just the other night, my husband received a voicemail from the university our daughters attend. It was a student, God bless her, calling to ask if we would give to the parents’ fund. I thought, doesn’t paying tuition count for this right now? LOL].

Reading a book like Frank Abagnale’s Scam Me If You Can: Simple Strategies to Outsmart Today’s Rip-Off Artists has further educated me on things to watch out for when we consider charities to give to.

Even before I read the book, I rarely answer a phone call from an unknown number, or even a known one if I am not expecting it. It is easy and common is to “spoof” a specific phone number. I am not the only one who has received phone calls on my cell phone from my cell phone number!

Over time, I have developed some general rules about giving:

*Consider not giving “on the spot.”

I rarely give to donation requests at check-outs or in or outside stores. (And part of me feels a little guilty to admit this, even though I know it is not the best way to give!)

This could include the ones in which you give a dollar to a “fill in the blank charity”–a children’s hospital, cancer charity, or other worthy cause. Then you write your name on a paper representing a hand or other object. It is then displayed it with dozens of others. And there are a lot of other ways.

My ready response is, “Oh thank you anyway, we give privately.” I used to feel guilty about this, but the checkout is not the place to be making charitable giving decisions. And we give privately. Consider those requests as an encouragement to find out more about the group rather than a guilt trip to donate right now.

This is true both and often when it relates to the specific charity. Giving “on the spot” is not the most efficient way to give money, and it is not a good way to decide about giving to charity.

And I do not give to the handwritten jar on the counter-type charities, since it’s unclear where the money will go, and , and often not used for the intended person.

*Give pro-actively, not reactively.

Being pro active rather than reactive is a good general personal finance skill. And it applies well in the giving department.

Instead of going through the mail, e-mail, or other requests for money, take some time to think about causes that are important to you and/or your family. What are some local or other charities that help with this issue? What is the best way to give to that group?

*Give more money to fewer charities.

Like many people, our weekly donation to our local church makes up much of our giving each year.

Apart from that, in the past, we used to donate to a a small amount of money ($10 to $50) to a lot of different charities. This probably exacerbated our problem of getting too much mail & too many phone calls asking for money.

Over time, we have gradually decreased the number of charities we give to. That allows us to have a greater impact in areas that matter to us.

A bonus is that giving big donations feels fantastic (and “rich”). I was going to write out, “write out a big check.” However, this has become a quaint anachronism these days, since people rarely write checks.

Give locally and in the wider world.

The maxim “charity begins at home” is a maxim for a reason. But it is not either/or.

This is very personal, because some people feel the need to give all or most of their money locally. And some people want to give to a specific non-profit far away in the world.

The secret is learning to be intentional and specific in giving, so as to have a greater impact.

*Give more than just money.

This is good for everyone, not just those who feel cash-strapped. And being generous with your time and talent does not have to be only for a registered 501(c)3, or “official” charity. Get creative!

In no particular order, here are some altruistic ideas:

  • volunteer at a soup kitchen.
  • donate clothes or other goods to a place like Salvation Army or Goodwill.
  • (once the coronavirus time is past) visit people in a nursing home.
  • step forward to be a youth group leader, adult mentor, or Sunday School teacher.
  • bring a meal and/or some groceries to a new mom.
  • (even better) offer to watch a mom’s kids so she can have a few hours to herself.
  • tutor kids at a local school.
  • spend an hour or two (perhaps with family or a small group of friends) picking up trash in a local park or neighborhood.
  • do yard work for a neighbor who is older.
  • volunteer professional services in your field (law, teaching, medical care) to a local group serving a needy population.
  • help out at a registration table, water stop, or other area of a running race.
  • give food from your garden to a food pantry.
  • volunteer to cleanup or restoration at local mountain biking or hiking trails.

There are countless other ways to give. What are some ways you give with intention?