COST OF LIVING ADJUSTMENT

There will be a Cost-of-Living Adjustment (COLA) in 2015; perhaps not as much as might have been expected but an adjustment nonetheless.  Retirees, individuals receiving Social Security and disabled Veterans will receive a 1.7 percent cost-of-living adjustment.  The COLA is based on increases in the Consumer Price Index (CPI).  When prices in housing, clothing, medical costs, food and other factors from one quarter (July,August, September) compared to that same quarter in the previous year, then benefits also increase resulting in a slight increase for Federal retirees, Social Security recipients and disabled Veterans.

The economy has still not recovered which means more and more Americans are looking for ways to manage their resources.  The cost of everything we need to survive – housing, food, clothing, transportation, medical costs and child care – is steadily increasing.  Retirement checks, Social Security checks and Veterans checks for disability just cannot keep up.  Families are finding innovative ways to make ends meet.  One familiar theme in the American culture today is generations of family members are sharing housing; thereby all other associated expenses.

Having grandparents in the home where there are small children saves on child care and provides a safe environment for the children allowing parents to work without the hassle of trying to make it to day care centers on time to avoid the extra late fees.  Families in past times lived together and shared resources.  History repeats itself and this is a time that that kind of history is worth repeating.

P. S.  Always Remember to Share What You Know

Dianna Tafazoli