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This Week In Your Wallet:
Sorry, Homebuyers…Your Timing Has Never Been Worse
Is it better to rent or buy? That’s a question that has long been debated, as each comes with pros and cons. Though the advice varies based on your personal situation and timetable, the rub on renting is that it’s been seen as throwing money away, while buying, and building equity, was considered an investment. A dysfunctional housing market though has turned that advice upside down. As the Wall Street Journal reports, there has never been a worse time to buy instead of rent.
According to an analysis from CBRE, in today’s economy it’s roughly 52 percent more costly to buy. That’s thanks to 30-year mortgage rates reaching 8% and high home prices. When you drill down to the dollars and cents, those who own a home are facing average monthly costs of $3,322, compared to renters, who pay $2,184. For homeowners who’ve been in their places for a couple of years the math looks completely different. Carol Ryan reports that 80% of homeowners with outstanding mortgages locked in rates a while back, when they were below 5%. This gives them an incentive to stay put and has caused a shortage of available homes that has pushed prices up.
“The last time the measure looked out of whack was before the 2008 housing crash,” writes Ryan. “Even then, the premium peaked at 33% in the second quarter of 2006.” Renters, she writes, have the upper hand these days, as an oversupply of apartments are holding back rent price escalation. “In a dysfunctional U.S. housing market, even one that should be tailor-made for landlords, perhaps only lifelong renters are getting what they want,” writes Ryan.
Scary Good Halloween Deals (Free Donuts? Yes Please)
After spending record amounts this year on everything from costumes to candy, we can all use a good deal, right? USA Today has rounded up some of the best discounts and freebies. Here are a few of my favorites from their list:
Chipotle: Beginning at 3:00 PM on Halloween, those enrolled in Chipotle’s rewards program will get entrees for just $6. That’s nearly half off when you consider the burritos, salads, tacos and bowls usually run about $10 to $12. To get this deal, you’ll have to place your order on the app or website and use the promo code BOORITO.
Dunkin’: Members of Dunkin’ Rewards will get $1 off a half dozen classic donuts, as well as $2 off a medium cold brew drink.
Sonic: On Halloween, corn dogs will be just 50 cents. Plus, after 5 p.m., you can get cheeseburgers at half price via the Sonic app–the perfect post-trick-or-treating meal!
Krispy Kreme: Stop by Krispy Kreme on Halloween wearing a costume, and you’ll get a free doughnut.
Plus, a bonus deal I'd like to share from the HerMoney team:
FinanceFixx: Don’t let the fear of this spooky season creep into your wallet!👻 Get your spending in check with HerMoney’s 8-week Money Makeover program, FinanceFixx. Use code FREAKYFIXX for 20% off. Sign up here!
The Pandemic’s ‘Silver Lining’: More Moms In The Workforce
As long and difficult as it was, there were some positives to come out of the pandemic. One of them? The number of American women working has hit a record high, with moms of children under the age of 5 leading the charge, according to an analysis by the Brookings Institution based on Bureau of Labor Statistics data.
As the New York Times reports, today, 77.7 percent of women ages 25-54 are employed, and a larger percentage of mothers of preschool and school aged children are working now, compared to just before the pandemic “What’s happening with married, well-educated women with young kids is crazy,” Lauren Bauer of the Brookings Institution tells the Times. “These are women who see themselves as workers. They were on the upward trend before the pandemic and they bounced back and just kept going.”
According to researchers, the biggest drivers behind the jump are (you guessed it) remote work, as well as more flexibility from employers, who are less concerned these days about when and where work gets done. That’s the case for Becca Cosani, who was profiled in the Times piece and works from home as an insurance consultant. The flexibility allows for her to walk her daughters home from pre-school each day. “It is just the joy of my life to be able to do that,” she says.
Interestingly, this cultural shift seems to be something that some employers understand better than others. According to The State of Women 2023, from HerMoney and Principal Financial, which included more than 500 owners of SMBs (small and mid-sized business owners) women employers rated higher than men the importance of a positive work environment (75% vs. 62%), focus on mental health and well-being (52% vs. 42%), and opportunities for advancement (50% vs. 41%) to employees.
A Simple Change = Speedier Boarding For United
If you’ve subscribed to this newsletter for any length of time, you know I love saving money. Saving time comes in as a close second; which is why I was intrigued to read about a new system being rolled out by United Airlines that promises to streamline the boarding process. The idea is simple–load the plane based on your seat location… window seats go first, then middle, then aisle. United estimates the system (which they tested at a handful of airports in 2017), will help make the boarding process at least two minutes faster.
Time, as we often say, is money and this change could mean just that for United. Nick Hobson of Inc. Magazine crunched the numbers and found it could save the carrier roughly $1.5 million daily in fuel and operational costs. The concept, Hobson says, is proof that if you’re in business, you don’t have to spend a lot to be innovative and reap the rewards of a good idea. “By reordering the boarding sequence based on seat location, United aims to minimize the need for passengers to squeeze past one another in the narrow aisles, a common source of delays and frustrations during boarding,” he says. “While the change might appear simple, it aligns with the principles of behavioral science and the "small big" - the idea that small, subtle changes can lead to significant influence and outcomes.”
The jury’s still out on the change, with team window excited about getting first dibs on overhead bins…and team aisle, not so much. PS: I’m getting on a United flight later today. I’ll let you know how it goes.
Have a great week!
Jean
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HerMoney Media, Inc. ("HerMoney") is not a client, agent, representative or affiliate of Edelman Financial Engines ("EFE"). EFE is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney. HerMoney receives a sponsorship fee from EFE depending on the number of podcast downloads, which 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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