Financial Planning & Unemployment Benefits

Job loss can create financial stress, so it’s important to manage your finances carefully and take advantage of any support available, such as unemployment benefits. This section provides financial planning tips and summaries of unemployment benefits (with resources) for the states mentioned (IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI).

Personal Financial Planning During Transition

Create a Budget:

Assess your finances by prioritizing essentials and cutting back on non-essentials. Budget savings or severance carefully to sustain a potentially long job search.

Health Insurance:

Ensure continuous health coverage by exploring COBRA or ACA marketplace plans, which may be more affordable with subsidies. A lapse in insurance can be financially risky.

Retirement Accounts:

Avoid cashing out retirement savings early to prevent taxes, penalties, and lost growth. Leave your TSP or 401(k) intact or roll it into an IRA or new employer’s plan when possible.

Short-Term Income Options:

Explore gig work, freelancing, or consulting for interim income, but be mindful of unemployment benefit rules. Set aside taxes if working as an independent contractor.

Communicate with Creditors:

If you expect difficulty paying bills, contact creditors early to explore forbearance or hardship programs. Many lenders and utility companies offer temporary relief options.

Utilize Free Financial Counselors:

Nonprofits and state agencies offer free financial counseling for unemployed workers. Check with your state’s workforce agency or United Way for budgeting and debt assistance.

Unemployment Benefits by State

Important: Unemployment rules can change, so always check your state’s official website for the latest eligibility requirements, documentation, and benefit extensions. During recessions or special programs, benefits may last beyond the standard period. You must file claims regularly and actively seek work to remain eligible. If you take part-time work, report your earnings—many states still provide partial benefits if income stays below a certain threshold. Also, remember that unemployment benefits are taxable, so consider having taxes withheld to avoid surprises later. These benefits exist to support you, allowing you to focus on your job search without unnecessary financial strain.