Money Matters: Your Financial Checkup for 2025

Dec 31, 2024

In this episode, host Janet Michael is joined by Karen Poff who manages the Northern Shenandoah Valley Financial Education Program as part of Virginia Cooperative Extension. They discuss various aspects of a financial checkup, helping listeners prepare for a financially healthy new year. Karen's expertise includes financial education and she regularly appears on the show to offer advice on managing money and credit.

Karen talks about common New Year's resolutions, primarily focusing on health and finances. She emphasizes the importance of conducting a financial assessment at the start of the year, while people are preparing their taxes and have year-end statements available. Karen explains that a financial checkup is similar to a doctor’s checkup, involving multiple components. She highlights the importance of calculating one’s net worth as a starting point. Karen provides an example to show how net worth should be viewed in context.

They discuss the concept of the debt-to-income ratio, which measures how much of one's income goes towards paying debts. Karen explains that a healthy ratio is below 15% and provides tips for managing and reducing this ratio.

Karen stresses the importance of regularly checking credit reports for inaccuracies and signs of identity theft. She also explains how credit scores can impact loan rates and other financial aspects, highlighting that one doesn’t need to obsess over perfect scores as long as they are within a good range. Karen & Janet had an in-depth conversation about credit on a previous show. Click here to listen to that episode.

The conversation includes additional steps for a thorough financial checkup, like reviewing insurance coverage, updating beneficiary information, adjusting tax withholdings, and increasing retirement savings.

They emphasize the value of consulting with financial professionals annually to ensure all aspects of one’s financial health are in order. Karen mentions the Virginia Lawyer Referral Service. You can find more information about them by clicking here.

The conversation concludes with Karen providing tips on accessing useful resources and reminding listeners that they can reach out to their local extension office for free financial guidance. You can reach Karen via email by clicking here. You can call her office at 540-635-4549.