Teklu Bahta -EFEC-Financial Educator

09/10/2026

The average cost of a 4-year public university today is over $100,000.

Private universities average $220,000 and above.

And the cost of higher education has consistently outpaced inflation for decades — meaning by the time your child enrolls, the number will be higher still.

Most families have no plan for these numbers. Here is the honest conversation — and the tools that actually help.

THE 529 PLAN — YOUR MOST POWERFUL COLLEGE SAVINGS TOOL:

WHAT IT IS:
A 529 is a tax-advantaged savings plan specifically designed for education expenses. Contributions are made with after-tax dollars. Growth is tax-deferred. Withdrawals for qualified education expenses — tuition, fees, books, room and board — are completely tax-free.

2025 GIFT TAX EXCLUSION:
You can contribute up to $19,000 per year per beneficiary ($38,000 for married couples) without triggering gift tax. Additionally, you can superfund a 529 with up to 5 years of contributions at once — $95,000 per beneficiary — a powerful strategy for grandparents or relatives looking to transfer wealth efficiently.

SECURE ACT 2.0 CHANGE:
Unused 529 funds can now be rolled into a Roth IRA for the beneficiary — up to $35,000 lifetime. This eliminates the biggest historical objection to 529s: "What if my child does not go to college?"

HOW MUCH DO YOU NEED TO SAVE?
To fund a 4-year public university education for a child born today — assuming 5% annual cost increases and 7% investment returns — you would need approximately $400-$600 per month starting at birth.

Starting at age 5: approximately $650-$800 per month
Starting at age 10: approximately $1,200-$1,500 per month
Starting at age 15: too late to fund fully through savings alone

THE STUDENT LOAN CONVERSATION — BEFORE THEY SIGN:
Student loans are the only debt in America that cannot be discharged in bankruptcy. Before your child signs for any loan, they need to understand:
▪ Their projected monthly payment upon graduation
▪ Their expected starting salary in their chosen field
▪ Whether the degree is worth the debt they are taking on
▪ The difference between federal loans (income-driven repayment options) and private loans (fewer protections)

THE HONEST MIDDLE GROUND:
Most families will not fully fund college through savings alone. The realistic approach combines: 529 savings, merit-based scholarships, part-time student income, affordable loan amounts where necessary, and community college transfer strategies.

The goal is not to make college free. The goal is to make the debt manageable.

Have you started a 529 for your children — or is this conversation still on your list?

09/04/2026

Money and Mental Health — The Financial Habits That Reduce Anxiety and Build Confidence

Financial anxiety is one of the most common and least discussed mental health challenges facing working adults today.

As a pharmacist, I have seen it manifest in patients managing stress-related chronic conditions. As a financial educator, I hear it in nearly every first conversation I have with a new client.

The worry is real. And it is specific:

Am I saving enough? What if I lose my job? Can I actually retire? What happens to my family if something happens to me? Why does it feel like everyone else has it figured out?

Here is what the research actually says — and what practically helps:

WHAT FINANCIAL ANXIETY FEELS LIKE:
▪ Avoiding opening bills or checking account balances
▪ Difficulty sleeping due to money worries
▪ Conflict with partners over spending or saving
▪ Feeling shame about financial mistakes or current situation
▪ A persistent sense of being behind with no clear path forward

THE CLINICAL CONNECTION:
Financial stress activates the same stress response systems as physical threats — elevating cortisol, impairing prefrontal cortex function, and reducing the cognitive capacity needed to make good financial decisions. This creates a painful cycle: stress impairs judgment, poor judgment leads to worse financial outcomes, worse outcomes increase stress.

THE FINANCIAL HABITS THAT ACTUALLY REDUCE ANXIETY:

1. KNOW YOUR NUMBERS — COMPLETELY
The anxiety of not knowing is almost always worse than the reality of knowing. Calculate your net worth. Review your monthly cash flow. The discomfort of clarity is temporary. The relief is lasting.

2. BUILD YOUR EMERGENCY FUND FIRST
Financial anxiety spikes most acutely around unexpected expenses. An emergency fund — even a small one — dramatically reduces the psychological impact of financial surprises.

3. AUTOMATE YOUR PROTECTION AND SAVINGS
Every month you manually decide whether to save is a month anxiety can talk you out of it. Automation removes the decision and builds security invisibly.

4. ADDRESS DEBT WITH A PLAN — NOT AVOIDANCE
Ignored debt does not shrink. A written debt payoff plan — even a modest one — replaces open-ended dread with a specific timeline. Timelines are manageable. Dread is not.

5. TALK ABOUT IT — WITH SOMEONE YOU TRUST
Financial shame thrives in silence. Talking to a financial educator, a trusted friend, or a counselor breaks the isolation that amplifies anxiety.

YOUR FINANCIAL HEALTH IS PART OF YOUR OVERALL HEALTH.
And it deserves the same attention, the same care, and the same compassion you bring to every other aspect of your wellbeing.

You do not have to have it all figured out. You just have to take one step.

What financial habit has most reduced your anxiety?

05/15/2026

If you came to this country with nothing or are the first in your family to earn a professional income- the financial system was not built with your starting point in mind. This is where to start. . Share this with a first generation professional or immigrant in your life who is trying to figure out where to begin. This post is for them.

05/13/2026

05/01/2026

The Moment I Realized My Patients and My Clients Had the Same Problem?

One afternoon in the pharmacy, a patient told me she could not afford her blood pressure medication.

She was not irresponsible. She was not careless. She was working two jobs and still could not make the numbers work.

I found her a coupon. I called her insurance. I did everything I could in that moment.

But I left that day knowing that what I had done was treat a symptom — not the root cause.

The root cause was financial stress so severe that it was making her medically sicker.

She was skipping doses because of money. Her blood pressure was uncontrolled because of money. She was in my pharmacy because of money.

And she had never once had a real conversation about how to manage her finances, protect her income, or build any kind of financial buffer for moments exactly like that one.

That pattern — financial stress driving health consequences — is something I see every single week as a pharmacist. And it is something I see reflected in the financial education conversations I have every week as a WFG agent.

The patients and the clients are often the same person.

They are working hard. They are doing their best. They have simply never been given the right financial tools, education, or guidance.

That is my mission. That is why I am here every week.

Not to sell products. To close the gap between what people know about their finances and what they need to know to actually be okay.

If you are in that gap right now — I see you. And I am here.

04/28/2026

35% of your credit score is payment. 30% is credit utilization. Most people guess wrong on both. Here is the complete breakdown and why your score is wealth building tool. . Save this as your credit score guide. And check your score for free today at annualcreditreport.com.

04/26/2026

Real estate is one of the most powerful wealth-building vehicles available to everyday investors. It is also one of the most misunderstood. Here is an honest breakdown before you consider your first investment property. Save this as your real estate education starter. And share it with someone considering their first property.

04/23/2026

Credit Score 101 — What It Is, What Affects It, and Why It Matters More Than You Think:

Your credit score follows you everywhere — mortgage rates, car loans, rental applications, even some job applications.

Yet most people have no idea what actually determines it.

WHAT IS A CREDIT SCORE?
A credit score is a 3-digit number (300-850) that represents how trustworthy you are as a borrower. The higher the number, the lower the risk — and the better the terms you get on loans and credit.

SCORE RANGES:
800-850 — Exceptional
740-799 — Very Good
670-739 — Good
580-669 — Fair
300-579 — Poor

WHAT DETERMINES YOUR SCORE (FICO model):

35% — Payment history
The single most important factor. Pay every bill on time, every time. One 30-day late payment can drop your score significantly.

30% — Credit utilization
How much of your available credit you are using. Keep this below 30% — ideally below 10% — of your total credit limit.

15% — Length of credit history
Older accounts help your score. Do not close old credit cards even if you do not use them actively.

10% — Credit mix
Having a variety of credit types (credit card, auto loan, mortgage) helps. Do not open new accounts just for this reason.

10% — New credit inquiries
Every time you apply for new credit, a hard inquiry appears. Too many in a short period can lower your score.

WHY IT MATTERS FOR WEALTH BUILDING:
A 760 vs. 660 credit score on a $300,000 mortgage could mean paying $50,000+ more in interest over 30 years. Your credit score is literally a wealth-building tool.

What is your score — and do you know what is affecting it?

04/20/2026

Hundreds of conversations. One question comes up more than any other.

"Where do I even start?"

It is the most honest question I receive — and the most important one. So let me answer it directly.

HERE IS WHERE TO START:

STEP 1 — KNOW YOUR NUMBER
Before any investment, insurance, or retirement strategy — know exactly what comes in and what goes out every month. Most people are surprised by what they find.

STEP 2 — BUILD YOUR EMERGENCY FUND FIRST
3 to 6 months of essential expenses, sitting in a high-yield savings account. This is not optional. This is the foundation everything else is built on.

STEP 3 — PROTECT YOUR INCOME
Life insurance is not a luxury. It is the first line of financial defense. If you died tomorrow, would your family be okay? If the answer is not a confident yes — this is your next step.

STEP 4 — ELIMINATE HIGH-INTEREST DEBT
Credit card debt at 20%+ is the single biggest obstacle to building wealth. Use the Avalanche or Snowball method — but attack it with urgency.

STEP 5 — INVEST CONSISTENTLY
Max your employer match in your 401(k) first — that is free money. Then build from there: Roth IRA, IUL, brokerage account. The vehicle matters less than the consistency.

STEP 6 — EDUCATE YOURSELF CONTINUOUSLY
You are here. You are doing step 6 right now. That matters more than most people realize.

THAT IS IT.
Not complex. Not overwhelming. Just a sequence — one step at a time.

Which step are you on right now? I genuinely want to know.

04/18/2026

Understanding the 4% Rule — How to Know If You Have Enough to Retire:

How do you know when you have enough money to retire?

Most people have no idea. They just hope. The 4% Rule gives you a concrete, research-backed answer.

WHAT IS THE 4% RULE?
Research from William Bengen (1994) and the Trinity Study found that a retiree can withdraw 4% of their portfolio in year one of retirement, then adjust for inflation each year — and have a very high probability of their money lasting 30+ years.

THE FORMULA:
Annual retirement expenses ÷ 0.04 = The portfolio you need to retire

EXAMPLES:
Need $40,000/year in retirement → You need $1,000,000
Need $60,000/year → You need $1,500,000
Need $80,000/year → You need $2,000,000
Need $100,000/year → You need $2,500,000

This is called your Financial Independence Number — the exact portfolio size at which your investments can fund your lifestyle indefinitely.

IMPORTANT CAVEATS:
1. The 4% rule assumes a diversified portfolio and a 30-year retirement. If you retire early, you may want to use 3-3.5% to be more conservative.
2. Social Security income reduces how much you need from your portfolio. Factor it in.
3. Taxes matter. If all your money is in pre-tax accounts, your 4% withdrawal is taxable. Tax-free sources (Roth IRA, IUL loans) dramatically improve your outcome.
4. Healthcare costs are often underestimated. Build in a healthcare buffer.
5. Inflation erodes purchasing power over time. Your portfolio needs to keep growing even in retirement.

THE CONNECTION TO FINANCIAL INDEPENDENCE:
The 4% Rule is the foundation of the FIRE movement (Financial Independence, Retire Early). You do not need a pension or Social Security to retire — you need a portfolio large enough that 4% of it covers your annual expenses.

What is your Financial Independence Number?