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During a recent visit to a kindergarten class where I shared lessons on personal finance, I was taken aback by a question from the students: How should they incorporate donating money into their financial plans? As the holiday season approaches, this question becomes even more relevant.
Deciding how much of our budget to allocate to charitable giving can be a complex decision influenced by various factors such as personal beliefs and tax implications, according to John Jones, a certified financial planner.
Financial experts suggest considering your overall financial situation before setting a donation goal. Erin Lowry advises ensuring that your giving aligns with your financial health and doesn’t add unnecessary stress.
It’s essential to vet organizations before donating to avoid falling victim to scams. Websites like GuideStar.org and CharityNavigator.org can help verify the legitimacy of charities.
Aside from financial donations, consider non-monetary ways of contributing, such as volunteering your time or skills. This can also have a significant impact on those in need.
Brenton D. Harrison emphasizes the importance of integrating charitable giving into your overall budget and financial goals. Considering tax implications can also help maximize the impact of your donations.
Planning ahead and strategizing your donations can not only benefit those in need but also potentially reduce your tax burden. It’s a way to save money while making a positive impact.
Creating a plan to give back, whether financially or through other means, is a valuable practice that can benefit both the recipient and the giver. It’s a lesson that even kindergarteners can understand and appreciate.