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Stat Of The Day
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48%
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That’s the percentage of consumers who admit they’ve engaged in "returns fraud." Some of the most common types include "wardrobing"–that’s wearing a piece of clothing, say a sparkly dress to a holiday party, then returning it for a refund, as well as getting permission to return a final sale item, or an item outside the return window, by falsely claiming it is defective. If you’re a regular returner (even one who follows all the rules), it could cost you. Scroll on to learn how.
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What Women Do More Than Men, And How It Helps Set Them Up For A Secure Retirement
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History shows that investors who choose not to sell during market turmoil and downturns fare much better in the long run than those who pull out of the market. In other words, hanging on tight when times get tough is one key to finding long-term financial success. And according to new data, women tend to behave this way more than men do. The 2023 State of Women survey from HerMoney Media and Principal Financial Group showed that the majority of women (55%) would choose to hold their investments during an economic downturn, compared to just 40% of men. Additionally, just 16% of women said they would rebalance or sell stocks during an economic downturn, compared to one-third of men.
Turns out, this is just one way women are more disciplined at playing the long game with their money. But what does it really mean to be truly "future-focused" when it comes to your finances? And how can it work to your advantage — or disadvantage? We break it down.**
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This Week In Your Wallet
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Two of the country’s largest credit card companies are set to merge. Earlier this week, Capital One announced plans to purchase Discover Financial Services for a whopping $35.3 billion. If all goes according to plan, Capital One could become the largest credit card lender in the nation, according to The Washington Post. The transaction could go through later this year, or early next…but only if regulators give it the green light. "The deal between two of the biggest credit card lenders will have to withstand close antitrust scrutiny from regulators, who are engaged in an overhaul of bank capital rules that have faced stiff industry opposition," notes The Post… adding that if approved, the deal would be one of the biggest since 2008’s financial crisis.
Imagine being told you’re banned from your favorite store. For life. It’s becoming a reality for people who are serial returners…or in other words…shoppers who return (a lot) of their purchases. Last year, consumers sent back a staggering $743 billion worth of merchandise. That costs retailers — big time. And now, they’re cracking down. Recently, Karen, a shopper profiled in this piece from The Cut, returned $180 worth of her $295 order from Urban Outfitters. "The next time she clicked CHECKOUT on an order from the retailer, a few weeks later, it wouldn’t go through," writes Laura Pitcher. "Confused, she kept trying — until she got an email informing her that she was no longer allowed to order from the website, or any of its associated establishments, because of an ‘excessive return rate.’" ASOS, SSENSE, and Saks have also
reportedly been handing out lifetime shopping bans. You’ve been warned!
Inflation is coming…for the Tooth Fairy. The amount of cash getting tucked underneath the pillow in exchange for those precious baby teeth is hitting record highs, according to The Wall Street Journal. In 2023, a poll from Delta Dental showed the average Tooth Fairy payout was $6.23 (up from $5.36 in 2022). It also found that 20% of children were receiving a gift along with their cash. And we aren’t talking about a candy bar or stuffed animal. One dentist The WSJ talked to said these days, it’s not uncommon for the Tooth Fairy to swoop in with video games or iPhones. Or, in the case of this little girl, a Louis Vuitton bracelet.
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Things That Save You Money
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Improved fitness was the #1 New Year’s resolution for 48% of people according to a recent survey. Unfortunately, research shows 80% of New Year’s resolutions fail by mid-February (as in, right now). If you’re still going strong when it comes to keeping your resolution to improve your health but could use a little encouragement, we’ve got you. This month the private HerMoney Facebook group was buzzing with tips for those looking to get fit while also trying to save $$$. Here are some of our faves:
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"I love the classes that come with Apple Fitness+ membership," says Celese. "I screen mirror my phone to my TV, I have a few weights at home, and follow along."
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Lots of you are BIG fans of Sydney Cummings Houdyshell, the YouTube fitness guru who has nearly 2,000 workout videos you can access for free. "She's amazing and I've been doing her workouts for four years," says Megan.
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ClassPass also gets A+ reviews. The subscription service lets you drop into fitness classes in your area (or participate in live, streaming workouts), without having to become a member of a specific club or gym.
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Discover Your MoneyType With Dr. Jennifer Leigh Selig
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"Understanding our typology in comparison to someone else’s can actually make a big difference in our relationships."
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Okay, so you know your Love Language. But how about your MoneyType?
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Everyone has a "money personality," or a MoneyType, whether they know it or not…and once we understand where our good and bad habits come from, we can take ownership of them and make a conscious effort to change them. (When we do so, financial success becomes all the more likely!)
Dr. Jennifer Leigh Selig, psychologist and researcher who created the MoneyType quiz that you can take for free at HerMoney.com, says "Understanding our typology in comparison to someone else’s can actually make a big difference in our relationships." Selig says that’s because "when we understand our type, we feel connected to ourselves. When we understand someone else’s type, we feel more connected to them, and we feel more connected to the human race in general."
As one recent taker of the test said: "I feel so seen!" Listen in as Dr. Selig sits down with host Jean Chatzky to talk through how she created the five MoneyTypes (The Nurturer, The Connoisseur, The Visionary, The Producer, and The Independent) and how they can not only help you improve your money habits but your love life, too.
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| The HerMoney Podcast* is made possible by Edelman Financial Engines.
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Ask Jean
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Today's question comes from Megan. She writes: New baby alert! Somehow my new baby is about to turn 9 months! I want to open a savings account for her or an investment account with the money she is gifted for various holidays. We can also transfer a small amount per paycheck. With careers these days I don't want to assume she will go to college. So I'm not sure about a 529. Seeking advice! Thanks!
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First, congratulations on your new arrival! (I know your wee one is about to turn 9 months, but that’s still plenty new in my book!) Before you give up on 529s, you should know that they have some advantages over the other savings accounts you mentioned (the money you invest grows tax-free, and contributors, depending on where they live, and the plan you choose, may get a tax deduction on contributions). They are also newly flexible for those kids who decide college isn’t for them. As of 2024, you can transfer up to $35,000 in 529 deposits into a Roth IRA.
Roth IRAs, are more flexible than traditional IRAs when it comes to getting the money out before retirement. You can withdraw contributions (but not earnings) at any time since you’ve already paid taxes on that money. You can also withdraw up to $10,000 (including earnings) for the purchase of a first home or for qualified educational expenses (though if your child wants college, you’re probably just better off leaving the money in the original 529.)
If this framework still sounds too restrictive, look at UGMA or Uniform Gift To Minors accounts. These also have benefits. Because they’re owned by the child, income on the investments is taxed at the child’s rate which is often lower than that of the parent. Once the child reaches the age of majority (i.e. adulthood, 18 in most states), the child then gets control over the money. There are risks there as well, in that you can’t stop them from using it however they’d like. But 18 years is often enough to hammer home the message: "This is for the long-term, hands off."
Whichever account you go with — and I’d encourage an account that allows you to invest the money like one of the aforementioned choices rather than a savings account — you can make automatic contributions into it on a monthly basis. It’s an incredibly powerful tool, one I used to save for my own children’s tuition. You’ll be amazed at how fast the dollars add up.
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Submit your questions to Jean here.
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More For You To ♥
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💎 This Episode Rocks: Hear how Gina Drosos, CEO of the world’s largest diamond retailer transformed the business with data-driven decisions. How She Does It is proudly supported by iShares.
🎓 By heading back to campus, seniors are living longer, healthier lives. This is thanks to university retirement communities that are popping up nationwide. Jean Chatzky met with senior living expert, Andrew Carle, to get all the facts on Your Money Map. P.S. If you’ve got questions about your retirement, we’ve got answers!**
🤔 The decisions we make with our money early on shape our financial future… which is why we’ve created a very special FinanceFixx course dedicated to early-career professionals who are newly navigating their relationship with money! We’d LOVE to help you or the young adult in your life start their financial journey on the right foot. Sign up here for our session starting February 26th.
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We maintain a strict editorial policy and a judgment-free zone for our community. We strive to remain transparent in everything we do. Website posts and newsletters may contain advertisements, links and mentions of products from our partners. Learn more about how we make money.
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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines –
Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM3339251.
HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.
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**This is a sponsored post
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BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates (together "BlackRock"). The information provided in this communication is solely for educational purposes and should not be construed as advice or an investment recommendation. Any opinions expressed do not necessarily represent the views of BlackRock. BlackRock is not affiliated with HerMoney.
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