Skip to main content

Inflation, Taxes, and Your Financial Reset

January 29, 2026

What You Need to Know This February

Use this month to look back at how money showed up in your life and decide what comes next. With inflation still shaping everyday costs and tax season officially underway, understanding how these forces work together is key to your financial wellness.

Inflation affects how far your money goes, while taxes affect how much of it you keep. Navigating school, careers, families, and financial independence, knowing the basics of both can reduce stress and help you make more confident decisions during an unpredictable economy.

February’s focus is not about doing everything “right,” but about understanding where you are and what tools you can use moving forward.

Choose Your Chapter!

Ch.1 Recent High School Graduates

Taking the First Steps Into Real-World Money

  • Check your withholding on your W-4; too many young professionals overpay or underpay taxes.
  • Review workplace benefits: Are you missing free retirement matching?
  • Build a 1-month emergency fund (start small, automate).
  • Plan for tax season early if you have multiple income streams.

If you’re recently out of high school or currently in college, inflation may feel invisible, but it shows up fast in food prices, transportation, textbooks, and daily spending.

Many students assume taxes don’t apply to them yet, but even part-time jobs, summer work, and gig income often require filing. Filing taxes for the first time helps you understand your income, track earnings, and avoid surprises later.

What matters most at this stage:

  • Learning what a W-2 or 1099 means
  • Understanding that filing taxes doesn’t always mean owing money
  • Noticing how inflation impacts small but frequent expenses

Resources:

🧾 Filing Taxes for the First Time → Legit, no-cost tax filing

💡 Beginner Money Education → Short definitions + examples (great for first exposure)

  • Investopedia: Taxes & Inflation Basics
     https://www.investopedia.com

***This is a great time to practice financial awareness, even if your income is limited!

Ch. 2 Young Professionals

Building Independence, Paychecks, and Real Credit Histories

  • Check your withholding on your W-4; too many young professionals overpay or underpay taxes.
  • Review workplace benefits: Are you missing free retirement matching?
  • Build a 1-month emergency fund (start small & automate).
  • Plan for tax season early if you have multiple income streams.

For young professionals entering the workforce or trade careers, inflation and taxes start to feel very real. Rent increases, grocery bills, transportation costs, and insurance premiums often rise faster than paychecks.

Tax season also becomes more complex. Many of you professionals now juggle multiple income streams, a full-time job plus freelance work, overtime, or side hustles, which can change how much you owe or receive.

At this stage, financial wellness means:

  • Understanding how your paycheck is taxed
  • Adjusting your budget for rising costs
  • Planning ahead so taxes don’t become an unexpected expense

Resources:

📈 Inflation & Cost-of-Living Tools→ Shows real costs by county and state

🧾 Taxes with Multiple Income Streams→ Must-read if freelancing or gig working

💳 Financial Wellness & Budgeting

***This is an ideal time to review last year’s income, reflect on spending patterns, and make small adjustments before the year moves too fast.

Ch. 3 Young Families / Couples/ Fur Parents

Balancing Careers, Kids/ Pets, Bills, and Major Life Decisions

  • Review childcare tax credits and dependent credits.
  • Combine budgets using a shared tool (a joint spreadsheet/ app).
  • Build a “family financial wellness plan” together for the year: bills, savings, and goals.

Adults managing shared finances, inflation hits differently. Groceries, childcare, pet care, housing, utilities, and insurance costs add up quickly, and decisions often affect more than just you.

Taxes also change as life evolves. Filing jointly, claiming dependents, or qualifying for credits can impact your financial picture significantly. Even pet expenses, while not tax-deductible, affect budgeting decisions that inflation makes harder.

Financial wellness at this stage includes:

  • Communicating openly about money
  • Planning for shared goals and responsibilities
  • Understanding how inflation impacts long-term stability

Resources:

🏠 Inflation & Household Budgeting

🧾 Family & Joint Tax Filing

🐾 Pets & Financial Planning

  • ASPCA Pet Cost Calculator→ Helps budget realistically for fur babies https://www.aspca.org/pet-care/pet-care-costs

💬 Money & Communication

***Reset this month as a household, without judging past decisions, and work together to align on what matters most.

Call to Action

No matter where you are in life, inflation and taxes are part of your financial reality, but they don’t have to control it.

This month, take three simple steps:

  1. Gather last year’s income documents (W-2s, 1099s).
  2. Reflect on where inflation affected you most and adjust.
  3. Set one realistic financial wellness goal for the year ahead, commit to a habit, and reward your milestones.

Other Resources

The Money Coach Alumni Network is here to support you through every phase with tools, resources, and guidance designed for real life.

👉 Stay connected. Stay informed. And keep building financial confidence, one step at a time.