By Farah Siddiqi
Ohio News Connection

Ohioans dealing with the lingering effects of inflation and post-pandemic economic shifts may be looking for ways to regain control of their finances.

According to Ohio United Way, many households continue to struggle with basic expenses, and nearly 40% of Ohioans live in Asset Limited, Income Constrained, Employed households, earning above the federal poverty level but not enough to afford essentials.

Todd Christensen, education manager for Money Fit Financial, a nonprofit focused on debt reduction and budgeting, said building a simple spending plan can make a big difference, especially when planning big-ticket purchases or even everyday decisions.

“Set a purpose, No. 1 – No. 2 is not to start adding income. You’ve got to prioritize expenses,” Christensen said. “If you don’t prioritize them, you will inevitably have to start eliminating expenses anyway. And you’ll go with your emotions rather than with the rational part of your brain.”

Christensen said many people rely heavily on credit cards or “buy now, pay later” apps, which can lead to overspending. He recommended using two separate checking accounts – one for recurring bills and another for discretionary spending – plus a savings account for both short- and long-term goals.

Christensen also encouraged parents to teach kids basic financial habits early, even before they start earning money from babysitting or mowing lawns. Without early exposure to managing small amounts, he warned, kids may struggle with larger financial responsibilities as adults.

“By age 2, children have been in their parents’ arms going through a checkout stand enough times that they know that there’s an exchange going on,” Christensen said. “They’re learning that there’s something magical about that plastic card, or about the phone that they tap.”

In Ohio, financial literacy is now a graduation requirement. Starting with the Class of 2026, all high schoolers must complete a stand-alone, half-credit personal finance course covering budgeting, debt, investing and consumer awareness, thanks to a 2021 law championed by Ohio Treasurer Robert Sprague and the Ohio Department of Education.

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.

Pictured at top: April is Financial Literacy Month. (Adobe Stock)