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Biden's White House budget might not include student debt forgiveness: How the headlines can affect your money

Experts expect Biden to forgive student debt through executive order or to wait for Congress.

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President Joe Biden delivers remarks on the COVID-19 response and the vaccination program in the East Room at the White House in Washington, DC on May 17, 2021.
Nicholas Kamm | AFP | Getty Images

All three major indexes rose Monday. President Joe Biden may not include student debt forgiveness in the annual White House budget. And make a post-pandemic budget now. Here's how the news could affect your money.

Markets rise to start week

All three major indexes rose Monday. The Dow rose 0.6%, the S&P 500 gained 1%, and the Nasdaq was up 1.4%. Markets were up Tuesday morning.

Fate of loan forgiveness unclear

Biden has repeatedly spoken of his support for $10,000 of undergraduate or graduate student debt relief, but neither the American Rescue Plan, passed in March, nor Biden's forthcoming infrastructure plan have included it. On Friday, The Washington Post reported that it is unlikely debt forgiveness will make it into the 2022 White House budget either.

If Biden is to forgive student debt, experts expect he'll do it through executive order or that he will wait for Congress to act.

VIDEO2:3902:39
Paying off your student loans with Michael Torpey

Video by Ian Wolsten

Plan your post-pandemic budget

As local economies open up and you're able to go to the movies or a baseball game again, you may find that these activities deplete your funds.

To avoid overspending, look back at your bank statements from the last three months and see what new habits you've developed, experts suggest. If you've started online shopping regularly, for example, consider giving yourself one day per week for online shopping, instead of seven.

Words you've heard: discretionary expenses

Discretionary expenses are ones you want but don't necessarily need. Be intentional about them: As you rejigger your budget for post-pandemic spending, "identify and own these expenses that fill your emotional needs and make you feel like a person," Pam Capalad, a certified financial planner and the founder and CEO of Brunch & Budget in New York City, previously told Grow.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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