Personal Finance Skills

Renting 

Pros:

• Flexibility: Easier to move when your lease ends.

• Lower Upfront Costs: Requires a security deposit and maybe first/last month’s rent, but no large down payment.

• Maintenance-Free: Landlords handle major repairs and upkeep.

• No Market Risk: You’re not affected if property values drop.

Cons:

• No Equity: Your monthly rent doesn’t build ownership or long-term value.

• Rent Increases: Your landlord can raise the rent when you renew your lease.

• Limited Control: Restrictions on decorating or making changes.

• Not Permanent: You’ll need to keep renewing or moving.

Buying

Pros:

• Building Equity: Payments contribute to owning the property, which can increase in value over time.

• Stability: You own the home and don’t have to worry about moving when a lease ends.

• Freedom: You can make renovations and customize the space.

• Potential Investment: Homes often appreciate in value, building wealth over time.

Cons:

• High Upfront Costs: Requires a down payment, closing costs, and other fees.

• Maintenance Costs: You’re responsible for repairs and upkeep.

• Market Risk: Property values can decrease, affecting your investment.

• Less Flexibility: Harder to move quickly due to selling or renting out your home.

• Stay organized with a financial planner or app.

• Take advantage of financial education resources from your bank.

• Regularly reassess your account to ensure it meets your needs, especially as your financial situation changes.

The form was discontinued as of the 2018 tax year and replaced with the redesigned Form 1040. Also we do not get our W2 forms until January.