Markus Andrews

Money dates are becoming a popular way for couples to discuss their finances together.
But when and where you choose to talk about money matters.
Rather than turn a special night out into a detailed meeting, focus on what you already have that’s bringing joy into your lives.

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Imagine this: It’s the most romantic night of the year. You scored the hottest reservation, bought a thoughtful gift and wore the perfect outfit. You sit down. The waiter decants a full-bodied red. You raise your glass to toast your love — and your partner pulls out a financial statement.
It’s not exactly what you had in mind.

Money dates are becoming a popular way for couples to discuss their finances together. By holding these dates on a regular basis, couples can improve their joint problem-solving skills and normalize tough conversations that might otherwise become a source of festering stress in their relationship.
But when and where you choose to talk about money matters. Spending quality time together on Valentine’s Day might lead to meaningful conversations, but venturing too far into the specifics could not only spoil the occasion, but it could also deter you from having these important dates at the right times in the future.
In other words, numbers aren’t romantic. Maybe this time, leave them at home. 

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“Money dates are not just about keeping the budget in check,” says Maggie Vaughan, founder and executive director of Happy Apple, a psychotherapy practice supporting couples in New York City. “They’re opportunities to reinforce the ‘team,’ practice communication skills and display mutual support.”
Vaughan finds that partners who feel anxious about their money might try to assuage their concerns by tracking every dollar. But in talking about it constantly, they’re losing the plot. “It’s an ironic situation given that the point of money, beyond survival, is to facilitate an enjoyable life.”

Rather than turn a special night out into a detailed meeting, focus on what you already have that’s bringing joy into your lives. Even better, you should dream.
Taking time to imagine the future together can be quite intimate, especially when neither partner immediately pivots into strategizing on how to reach certain outcomes. Concoct a bucket list vacation itinerary. Explore towns to live in someday — if Zillow doesn’t spoil your appetite. Listen without judgment or giving criticism.
Both partners should have the floor to share their vision of how wonderful life can look together. If you both feel good, this meaningful conversation could lay the groundwork for a more focused meeting on achieving those goals at a better time.

How to have a successful money date

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Real money dates should take place once a quarter and after any major life changes.
Hold them anywhere that makes you most comfortable, like sitting down at a quiet restaurant or walking through a park. Make sure you have ample distraction-free time cleared on both of your schedules to avoid anyone feeling rushed or slighted. Mute all your devices to give the date your full attention.
Two technical sources of information will guide a great money date: your net worth table and your budget. They are your North Star, because they illustrate what you own, what you owe and how money flows in and out of your lives.

Your net worth is the difference between your assets and liabilities. A net worth table should include all your assets, such as your cash savings and your investments (including the current value of real property, if you own any), and your liabilities, such as your mortgage and any student loan or consumer debts. This is less important as a stand-alone snapshot of your wealth and more for you to understand whether your wealth is growing or decreasing.

Your budget exists to shed light and keep tabs on your spending behaviors. Base it on specific data captured over at least six months, but a year is even better. Calculate your monthly lifestyle costs by combining the average balances on your credit cards, withdrawals from your checking accounts, and deductions from your paychecks for expenses such as health insurance. Is your monthly lifestyle more or less than what you’re earning? Dive deeper from there. Examine both of your larger fixed expenses such as housing and transportation and work your way down to smaller discretionary expenses including dining out, clothing and entertainment. Do you need to make changes? Can you both agree on where to spend less? The important part is to listen to your partner, who might have a different opinion on which expenses matter more. Don’t discount them — validate them and leave room for compromise. 

Back to those feelings again. Make sure your money date includes a broader temperature check. Are you both feeling secure at work? Have you incurred any new or unexpected expenses? Are you comfortable with them, or are they causing you stress?
Talk about your goals — maybe even the new ones discussed over Valentine’s Day. Do either of you think it’s time to begin planning for them in earnest? If so, where should they fall on your priority list?
Trying to answer these questions can be emotional. That’s why they deserve their own dedicated time. Just remember the goal isn’t to solve for every single issue at once but to discover your mutual understanding and work as a team.  
— By Douglas and Heather Boneparth of The Joint Account, a money newsletter for couples. Douglas is a certified financial planner and the president of Bone Fide Wealth in New York City. Heather, an attorney, is the firm’s director of business and legal affairs. Douglas is also a member of the CNBC Financial Advisor Council. More

Nearly two-thirds, 63%, of young adults believe the stock market is a great place to build wealth and invest, but many are not participating, according to the latest Youth & Money in the USA poll by CNBC and Generation Lab.
Almost half, 48%, do not have enough savings to cover more than two months’ worth of living expenses.

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Despite earning more, many Gen Z adults and millennials are having a hard time finding room in their budgets to invest.
To that point, 63% of young adults believe the stock market is a great place to build wealth and invest, but many are not participating, according to the latest Youth & Money in the USA poll by CNBC and Generation Lab. In fact, 61% are not saving for retirement each month.

The survey polled 1,013 people ages 18 to 34 in the U.S. in late January.

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A prime culprit: higher expenses that have limited their ability to put money aside for savings and investments. Only 11% have enough savings to cover the cost of living for more than a year if they had no income, while 48% cannot cover more than two months’ worth of expenses, according to the report.
“We can’t overlook this,” said Cyrus Beschloss, founder of Generation Lab.
Even though younger adults are earning a bit more than a year ago, they’re having a hard time saving for emergencies and investing in retirement accounts as they grapple with the high cost of living. It’s a major factor the cohort will focus on in the upcoming presidential election season.
“They’re cutting costs, they’re tipping less, they’re trying to spend less eating out … living with parents … they’re not acting like the economy is as good as it is,” Beschloss said.

‘People want to invest but generally can’t’

Most younger adults are making a bit more money than 12 months ago (32%), a lot more (10%) or about the same income (31%), according to the Youth & Money in the USA survey.
However, the “generation doesn’t really have much cash saved up,” said Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York.
“That’s very indicative of why more people aren’t saving for retirement, why people want to invest but just generally can’t right now,” he said.
Only 3% say they make enough to be “extremely comfortable” and 18% say they have enough to “live pretty comfortably,” while 38% describe themselves are living paycheck to paycheck.
“They know they need to have cash reserves. They know they need to have a couple of months’ expenses before they start looking to invest in their retirement accounts,” said Cornell.

When asked about their living arrangements, 40% said they live with family while 27% have roommates. Only 13% are living on their own, the poll found.
“They’re making more money, but they’re not really acting or spending like it,” Beschloss said.
The number of young adults still living with their parents is at historic levels due to unaffordable housing costs, according to Susan M. Wachter, a professor of real estate and finance at The Wharton School of the University of Pennsylvania.
It “takes us all the way back to 1940, the end of The Great Depression,” Wachter said.Don’t miss these stories from CNBC PRO: More

The cost of car insurance has surged 26% between last year and this year, according to Bankrate.
High inflation that began in 2020 prompted the cost of vehicles and parts to go up.
Here’s why personal factors, such as your credit score, can prompt higher costs.

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If you’ve noticed the cost of your car insurance policy has gone up, you’re not alone. Inflation takes some of the blame, but your credit score may have a role as well.
The national average cost for full-coverage car insurance has gone up to $2,543 per year, according to Bankrate. That’s up from $2,014 in 2023 and $1,771 in 2022.

Today’s national average represents 3.41% of the median household income, according to the personal finance website, at a time when many Americans are still grappling with higher prices.
“We saw an increase of 26% between last year and this year,” Bankrate analyst Shannon Martin said.
The spike in prices is the result of multiple events that happened in a short period of time, she said.
High inflation that began in 2020 prompted the cost of vehicles and parts to go up, while there was also an increase in extreme weather claims, Martin noted. There was also a 10% increase in car crash fatalities in 2021.
“Insurance companies are trying to recoup those losses, and then project and estimate what the future risk will be,” Martin said.

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The cost of car insurance varies across the country. For example, Detroit drivers stand to pay the highest average annual expense, with $5,687, or 7.98% of the median household income.
Other cities in Bankrate’s ranking of top five most expensive cities for car insurance include Las Vegas, Miami, Philadelphia and Tampa.
The least expensive city for full-coverage car insurance is Seattle, where drivers spend an average of $1,759 per year, or 1.65% of the median household income.
Other cities that were also categorized as least expensive include Boston, Minneapolis, Portland and Washington, D.C.

How credit score influences car insurance costs

Regardless of location, certain events will prompt higher car insurance costs.
The biggest culprit, according to Bankrate, is adding a teenage driver to your policy, which can result in an added $2,878 to average annual premiums, even higher than a drunk driving conviction, which can add an average of $2,247. 
If your credit score decreases from good to poor, that can increase average annual costs by $1,795.
Credit can have a bigger effect than receiving a speeding ticket, which can add $523 in average annual costs, or a lapse in auto insurance coverage, which can prompt a $276 increase.
The good news is there are steps you can take as a driver to help mitigate some of those increases.
Not all states use credit as a rating factor to determine the price of your auto insurance policy, Martin noted. However, most do.

If you’re in a situation where your credit score is low enough to adversely affect your car insurance costs, you likely have recent delinquencies or other issues with debts that have not yet been resolved, noted Bruce McClary, senior vice president at the National Foundation for Credit Counseling.
“Try to make progress towards improving your score and improving your overall financial well-being to help get things back on track,” McClary said.
Having lower credit scores can raise the cost of other borrowing costs, such as credit cards, auto loans and mortgages.
To improve your score, it helps to pay your balances down and pay your bills on time.
You may also want to check for potential errors on your credit report, which may drag down your rating, McClary noted. Consumers can currently check their credit report from each of the three major credit reporting agencies every week by visiting AnnualCreditReport.com.
If you successfully raise your credit score, be sure to report that change to your auto insurer to have your policy adjusted, Martin said.

Other ways to reduce what you pay

If you have a teenage driver, you can have your child take an extra driver training class, which can result in an extra discount on your car insurance policy, according to Martin.
Students who have a certain grade point average in school may also be eligible for discounts, according to AAA, a provider of travel and insurance services.
Adult drivers may also be able to get discounts on their policies by completing drivers training courses or programs.
Drivers may also save by bundling insurance on their vehicle, home and other valuables, according to AAA.
They may also pay less by paying the policy in full up front, rather than in installments, which can come with fees.
Driving fewer miles may also qualify for car insurance discounts.
In addition, by increasing the deductible on the auto policy, or the amount you have to pay upfront in the event of a claim, you may lower the cost of your policy. Before you do that, be sure you have ample cash set aside.Don’t miss these stories from CNBC PRO: More

Smart Tax Planning

If your adjusted gross income for 2023 was $79,000 or less, you can use IRS Free File for federal tax returns this season.
Some 70% of taxpayers — roughly 100 million Americans — are eligible for IRS Free File, but only about 3% used it last year, according to Tim Hugo, executive director of the Free File Alliance.

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If you’re eager to save money filing your taxes this season, there’s a free option that’s used by only a fraction of eligible taxpayers.
Established in 2002, the program, known as IRS Free File, is a public-private partnership between the agency and the Free File Alliance, a nonprofit coalition of tax software companies. There are eight partners for 2023 filings.

Free File offers guided tax software for federal returns for taxpayers below a certain income and some partners also offer state filings. Some 70% of taxpayers — roughly 100 million Americans — are eligible for Free File, according to Tim Hugo, executive director of the Free File Alliance. But only about 3% of filers used the program last season.

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While the IRS is launching its Direct File software pilot this season, the agency said in a January press release that Free File is still a “great way to claim valuable tax credits,” such as the child tax credit and earned income tax credit.
“Through the years, Free File has helped millions of taxpayers, and it remains an important option for people to consider using to quickly and easily file their taxes,” IRS Commissioner Danny Werfel explained in the release.

How to qualify for IRS Free File

For 2023, you can use Free File with an adjusted gross income of $79,000 or less, which is up from $73,000 in 2022. Free File also offers Fillable Forms for all income levels, which is the electronic version of a paper filing, Hugo said.
You calculate adjusted gross income by taking your total earnings and subtracting “adjustments,” such as certain pretax individual retirement account contributions and student loan interest. Pretax 401(k) contributions also reduce your total income.

While there are software options for anyone who made $79,000 or less, each partner has different eligibility requirements, based on age, income and residency. You can use this tool to find the best software partner.

IRS Free File partners for 2024 season

1040Now
Drake (1040.com)
ezTaxReturn.com
FileYourTaxes.com
On-Line Taxes
TaxAct
TaxHawk (FreeTaxUSA)
TaxSlayer

IRS Free File is ‘not just for simple returns’

While complicated filings may need professional guidance, Free File can handle more tax situations than you may expect.
“Free File is not just for simple returns,” Hugo said.
Free File partners aren’t required to cover all federal income tax forms and schedules. But the software will include the “most commonly filed,” according to the IRS.
For example, you can file Schedule B for interest and dividends or Schedule C for self-employment, contract or gig economy work, Hugo said. There’s a full list of available forms and schedules here.
You can also file for an extension through Free File, which moves your filing deadline to Oct. 15. However, most filers still must pay taxes owed by the original deadline of April 15.

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It seems that every month Rep. James Clyburn is pushing for more relief for the country’s 40 million student loan borrowers, and he often mentions the issue of education debt in his television news appearances.
Here’s why the congressman cares so much about the issue.

House Democratic Caucus Chairman James E. Clyburn, D-S.C., during an interview in his hideaway in the U.S. Capitol. 
Scott J. Ferrell | Cq-roll Call, Inc. | Getty Images

WASHINGTON, D.C. — On a recent Sunday afternoon, Rep. James Clyburn, D-S.C., was attending a church service in his hometown of Sumter, South Carolina, when a member of his staff handed him a letter from a constituent.
The man was writing to share the pain his student debt had caused him, and to thank Clyburn and President Joe Biden for their recent actions. After more than three decades of payments, he’d gotten over $100,000 of his debt forgiven.

“My staff tell me these phone calls come in all the time,” Clyburn said to CNBC. “About half of them are crying on the phone about what a relief this is.”
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The Biden administration has reformed the government’s programs that lead to student loan forgiveness, resulting in more than 3.7 million Americans receiving debt cancellation, for a total of $136 billion in aid. After the Supreme Court blocked the president’s sweeping debt forgiveness plan, which erased up to $20,000 for tens of millions of people, Biden directed the U.S. Department of Education to work on a narrower debt relief package that would stand better legal chances.
Clyburn has played no small part in all of this.
It seems that every month the congressman is pushing for more relief for the country’s 40 million student loan borrowers, and he often mentions the issue of education debt in his television news appearances.

Clyburn counts student loan debt as “the biggest” issue facing Americans today, in part because failing to address it exacerbates other crises.
“You’re not going to solve the climate crisis unless you’ve got well-educated and trained people to do it,” he said. “You’re not going to solve the health-care crisis without doctors and nurses. And student loan debt is the best way to go.”
These days, Clyburn is thinking about how student debt could impact the 2024 presidential election. He is worried many voters don’t understand it was the Supreme Court’s conservative majority that ultimately stopped Biden’s biggest plan for forgiveness.
CNBC sat down with the congressman in late January in his office to discuss the student loan crisis and voters. (The interview has been edited and condensed for clarity.)

‘Forgiveness can’t reach everybody’

Annie Nova: At 83, you’re one of the oldest members of Congress. Student debt is largely considered a young person’s issue (although we know it impacts older people, too). Why do you care so much about the subject?
Rep. James Clyburn: I think one of the worst things about politics on this Hill is that everybody reduces everything to the person. I was not put on this earth for my own sake. Sometimes my brother says, “Maybe our religious upbringing was a curse” And maybe it was. But I don’t ever go to bed at night regretting having lived a day. I regret having to interact with some of the people I interact with.
AN: The Biden administration has forgiven a lot of student debt, but I often hear from borrowers who’ve been left out of the relief. A lot more, they say, still needs to be done.
JC: When I first discussed student loan debt with the president, I had a piece of legislation giving $50,000 in debt elimination to students. Joe Biden would never buy into that.

AN: Was that number too much?
JC: I didn’t say it was too much. It wasn’t the way he thought it should be done. I found out later, he was right. If I had given $50,000 to someone to pay off a $300,000 debt, they would still owe $250,000. Instead, the president said, ‘Let’s fix these programs that we have.’ Forgiveness can’t reach everybody. What you have to do is have a process that everyone can qualify for.

‘How can you blame Biden for the Supreme Court?’

AN: But the plan Biden did ultimately announce would have forgiven $400 billion in student debt, and impacted tens of millions of people.
JC: How can you blame Biden for the Supreme Court? I don’t see a single woman that blames Biden for the Dobbs decision. [In Dobbs v. Jackson, the justices overturned Roe v. Wade, the landmark ruling that established the constitutional right to abortion.] We have a right-wing Supreme Court that is intent on maintaining an underclass.
AN: Do you think voters understand that it was the Supreme Court that blocked the president’s broad forgiveness plan?
JC: No, they don’t. They’re blaming the president for it. I think it would be nice if people said, “To his credit, he tried. But the Supreme Court stopped him. So he went this other route.” You have $136 billion in debt forgiveness, and he’s not supposed to get credit for that? There’s something about Joe Biden that people just don’t give credit to.

AN: So how can you change that ahead of November?
JC: Well, going forward, I’m told by the Department of Education, that every two months for the next four years, another 75,000 people will be eligible to have their debt forgiven. That’s under the Public Service Loan Forgiveness program and income-driven repayment plans.
AN: What would another Trump presidency be like for student loan borrowers?
JC: I’d say to any young person, “Who do you want to be in charge of this country when your future arrives?” This country holds too much promise for us to allow it to go the way of Germany or Italy. All those people paid a hell of a price for taking a gamble on democracy.
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Few college admission cycles have been as tumultuous as this one.
As schools are forced to rethink their policies in the wake of the Supreme Court’s ruling against affirmative action, it’s not an easy time to be a college applicant, especially for students of color.
And then there is the issue of financial aid.

With competition at an all-time high and admissions practices increasingly unclear, it’s not an easy time to be a college applicant, especially for students of color.
The Supreme Court’s ruling against affirmative action was considered a massive blow to decades-old efforts to boost enrollment of minorities at American universities through policies that accounted for applicants’ race.

“In terms of ensuring access to higher education and income opportunities, the barriers are already so high,” said Cara McClellan, director of the Advocacy for Racial and Civil Justice Clinic and practice associate professor of law at the University of Pennsylvania Carey Law School.
However, this year’s admissions cycle, which marked the first in which race was not considered, is already reflecting an unexpected dynamic.

College application volume is rising

As of Jan. 1, college application volume rose 9% in the 2023-24 academic year compared with a year earlier, according to the latest report by the Common Application.
More students are applying overall, and a larger share of applicants identified as an underrepresented minority. The percentage of first-year applicants identifying as Black or Latino jumped 12% and 13%, respectively, year over year, outpacing other groups.
At the same time, colleges are seeing an increase in first-generation applicants and international students, the Common App found.

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Experts predicted the Supreme Court’s ruling would encourage colleges to put more weight on students’ household income and their regional background to diversify their student bodies.
Already, the number of applicants from below-median-income ZIP codes is notably higher, rising 12%, while more students requested a fee waiver, which is often used as a proxy for low-income status, according to the Common App.
These changes may be explained, in part, by an effort on behalf of colleges to enhance their recruitment efforts and financial aid awards, according to Bryan Cook, director of higher education policy at the Urban Institute.

It’s possible the numbers may not be as stark as people think.

Bryan Cook
director of higher education policy at the Urban Institute

“It’s possible the numbers may not be as stark as people think,” Cook said of how this year’s changes will be reflected in next year’s freshman class. “What may mitigate the decline is schools trying to work around this.”
However, research also shows that when states end affirmative action, the class makeup significantly shifts, added Elise Colin, a research analyst at the Urban Institute.
After the University of California eliminated affirmative action in 1996, the share of underrepresented groups fell 12% in the years that followed. When the University of Michigan banned race-conscious admissions, Black undergraduate enrollment at the school dropped by nearly half from 2006 to 2021, according to the Urban Institute. 
“Even when they tried to use other methods to increase diversity, that didn’t make up from the loss of affirmative action,” Colin said.

Advocates have warned that the ability to maintain racial and ethnic diversity would likely be under pressure and it may be a while before the impact of the high court’s ruling against affirmative action is entirely clear.
“Some institutions in the face of the Supreme Court’s decision, which has created a lot of uncertainty, are being incredibly thoughtful in how they can achieve their mission. But it requires real commitment,” McClellan said. 

The financial aid factor

For many families, the price tag is the most significant sticking point when it comes to college access. With financial aid awards delayed this year due to the rollout of the new Free Application for Federal Student Aid, or FAFSA, high school seniors are under even more pressure to decide on college with less time to weigh the financial implications.
Meanwhile, would-be college students have been looking more closely at the return on investment and the growing student loan balances that often go hand in hand with a degree, other reports also show. 

The costs associated with an undergraduate education have greatly outpaced the general cost of living over the past few decades, leading to the spike in student loan debt, according to a recent report by Wells Fargo.
The share of Black households that have student debt is 14 percentage points above the comparable share among all families, the Wells Fargo report found. Black households also tend to borrow more than other households to finance a higher education.
And because of historic racial and economic inequities, Black student loan borrowers struggle to repay their debt more than their white peers.
“This becomes another barrier for students who are underrepresented and under-resourced,” McClellan said.

In some ways, the student loan crisis has overshadowed higher education’s proven success, said Liz Cheron, CEO of the Coalition for College, which aims to promote college access.
However, for students going through the college admissions process this year, these are hefty challenges to navigate, she noted.
“The reality for students and families is that this is outside their control,” she said. “We have to trust that colleges and universities are working as hard as they can to innovate and create solutions in a more limited environment.”
“I’m really hopeful with this challenge that the collaboration and innovation and creativity really will allow for us to encourage diverse student audiences to pursue higher education,” she added.
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It’s not uncommon to turn to material possessions to fill the void created by isolation.
Being part of a community can be more rewarding than the temporary satisfaction that comes from spending.
Even small acts of kindness can make us braver and bolder in connecting with people.

Maskot | Maskot | Getty Images

It’s all too easy to fall into a rhythm of mindless spending in the hustle and bustle of modern life.
This cycle of buying and seeking can leave us feeling empty, constantly chasing a happiness that always seems just one purchase away. But what if the key to a genuinely fulfilling life lies in turning toward the people around us, our communities?

Research conducted by Cigna and Morning Consult in 2022 reveals a startling truth: 58% of U.S. adults feel lonely. This number may feel palpably higher in cities, where individualism often overshadows communal living, especially for women who navigate these spaces independently.

Pitfalls of emotional spending

It’s not uncommon to turn to material possessions to fill the void created by isolation. Nearly half of Americans admit they’ve spent money to improve their mood, according to a recent LendingTree survey. Women are far more likely to engage in this behavior than men, at 57% vs. 40%.

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Yet this feeling tends to be fleeting. Nearly two-thirds of shoppers who have experienced buyer’s remorse regretted their purchase because it was unnecessary, according to a 2023 Google/Ipsos poll.
Then, of course, there are the financial consequences of mindless spending.
The average single female spends 110% of her monthly after-tax income, while men spend 95.8%, according to data compiled by Capital One Shopping. Over time, these habits of living paycheck to paycheck and overspending can lead to financial instability and strain, impeding progress toward longer-term goals.

The transformative power of community

Suppose mindless spending merely addresses the symptoms of loneliness rather than the underlying issue. How can we overcome the emotional load of social disconnection without falling into the trap of consumerism?
The answer may lie in the power of building a community.
Being part of a community provides a sense of belonging and identity. This connection to others can be more rewarding than the temporary satisfaction that comes from spending. For example, research indicates that the stronger our sense of belonging, the better our mental health and well-being.

In addition, communities provide opportunities for shared experiences, learning, and personal growth. Engaging in community events or projects creates memories and builds skills that enhance one’s life more than material possessions.
Beyond benefiting our emotional and physical wellness, community may also be favorable for our finances. In a Money and Mental Health survey of nearly 5,500 people, 72% of respondents said mental health problems made their financial situation worse, underscoring the profound connection between emotional well-being and financial stability.

How to forge connections

Alistair Berg | Digitalvision | Getty Images

Connecting with others is knowing your neighbors’ names or attending your neighborhood block party. But, more importantly, it’s about creating a network of support and continual shared experiences that enrich our lives in ways shopping never can.
It begins with the simple things: a smile to a neighbor or a stranger you pass on the street, a hello to the barista who makes your morning coffee. These small acts of kindness aren’t just effective for reducing stress and improving emotional well-being; they can also make us braver and bolder in connecting with people.
Some other ways to forge connections:

Volunteer: Participating in local initiatives can also foster a sense of belonging. Moreover, volunteering for causes dear to your heart can open doors to new friendships and connections. It’s a way of giving back that enriches the community and your life.

Engage with hobbies: Explore where your interests align with others, whether through local clubs, online platforms, or community centers. Be it a book club, a yoga class, or a gardening or dining group, these are activities where you can find like-minded individuals and potential friends. For example, I discovered Jill Daniel’s Happy Women Dinners when looking for more community. Jill plans lunches and dinners, usually with a female book author as the featured speaker.

Initiate opportunities: Above all, be proactive. Start a neighborhood garden or safety watch group if there isn’t one. Collaborate with neighbors and new connections to create initiatives that benefit everyone. There’s immense fulfillment in contributing to the well-being of your community.

In turning toward each other, we find what we’ve been searching for — connection, belonging, and a sense of purpose and fulfillment that no shopping spree can provide.
— By Cathy Curtis, certified financial planner and founder and CEO of Curtis Financial Planning. She is a member of the CNBC Financial Advisor Council. More

Smart Tax Planning

The Internal Revenue Service reminded taxpayers on Thursday that it’s important to carefully choose a tax professional.
There’s an accountant shortage in the U.S., so finding qualified tax prep help may be trickier this year.

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Why it may be harder to find an accountant

Accounting bachelor’s degree completions have been falling about 3% every year since 2015, according to the American Institute of Certified Public Accountants. The number of new candidates sitting in for the certified public accountant exams has also been declining since 2016, the AICPA found.
To address the decline of new professionals in the field and “expand the CPA pipeline,” the format of the CPA exam will be different in 2024, Henry Grzes, lead manager for tax practice and ethics with the AICPA, recently told CNBC.

“That’s the reason the exam was changed: to allow more people to have that designation. The CPA designation is a very important standard,” Grzes said.
Here are five ways to vet a tax preparer, according to the IRS:

1. Make sure they have a PTIN

Always ensure the tax preparer you are hiring for the service is registered with a valid Preparer Tax Identification Number. Anyone who is paid to prepare or assists in preparing federal tax returns is required to have a PTIN by law.
Confirm that the professional will both sign the return and include their PTIN.
“Not signing a tax return is a red flag that a paid preparer is likely not to be trusted,” according to the IRS.

2. Confirm availability

Ideally, you want a preparer who is available year-round, and who won’t disappear after tax season.
“If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over,” the IRS notes.

3. Understand the preparer’s credentials

If you haven’t found an accountant or CPA for this tax season, you can broaden your search to include tax attorneys and enrolled agents. Either can legally represent you before the IRS.
Some tax preparers only carry a PTIN. While they can prepare and file your returns, they cannot represent you before the IRS if there’s ever a notice or an audit, Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida, previously told CNBC.
The IRS also notes that Annual Filing Season Program participants who prepare and sign a tax return can represent taxpayers in limited situations.

4. Review the preparer’s history

Taxpayers can often look up information about the tax preparer to make sure there are no red flags.

The Better Business Bureau and review sites such as Yelp may have information about the preparer as well as customer reviews and complaints.
Visit credentialing organizations’ websites to verify a preparer’s status and check for disciplinary actions. For CPAs, check the State Board of Accountancy’s site, and for attorneys, their State Bar Association, the IRS notes.
For enrolled agents, use the IRS Directory of Federal Tax Return Preparers to verify their status.

5. Ask about fees

“Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts,” the IRS notes. “Be wary of tax return preparers who claim they can get larger refunds than their competitors.”
If you are having trouble finding a qualified professional in your area, think about strategies such as free or paid online filing options, volunteer income tax assistance programs or even filing your taxes later in the year. More