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Stat Of The Day
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42%
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That’s how much more likely men are than women to make catch-up contributions. As Politico reports, only those who make $150,000 or more make significant use of the savings strategy, which allows people aged 50 and up to make extra contributions to their 401(k) or IRA accounts.
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Four Financial Concepts Most People Miss
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April is Financial Literacy Month, a time when we raise awareness about the need to boost our collective financial know-how, and brush up on the money terms we all should know.
Studies have shown a lack of financial literacy can cost you (a lot). Americans estimate they lost an average of $1,506 in 2023 because of their lack of knowledge about personal finances. Just think about how those funds could have been used–investing, making an extra mortgage payment, putting it away for your child’s education…we could go on and on!
Even for those who consider themselves money-managing pros, we can pretty much guarantee there are still things you can (and should) learn when it comes to boosting your financial literacy. HerMoney caught up with four financial educators and coaches and asked them, "What’s the financial term or concept you wish more people understood?"
For Mykail James of Boujee Budgets, APR/APY is at the top of the list. "The "A" in both these acronyms stands for annual. Meaning if you have a savings account with an APY of 5% you do not earn 5% every month," says James. "The bank divides the 5% by 12 months to determine your monthly rate. If you have a credit card with an 18% APR the bank does not charge 18% every month. I see this confused by many people."
For more of the finance concepts experts say we should all brush up on, click here.
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Things That Save You Money
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Fri-Yay. Wendy’s is giving away free French fries with any purchase every Friday through the end of the year (if you’re doing the math, that means 36 orders of free fries). You can find the offer in the Wendy’s app.
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Getting married? Don’t forget to add your favorite companies to your invite list. There are a number that will send gifts to fans who are getting hitched. Take for example LaCroix, which sent this bride a box of freebies including some of their sparkling waters, stickers, a mug and other goodies. For some of the best brands to contact, head
here.
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This New York Times reporter has saved thousands by using a $16 hand-washing detergent instead of making regular trips to the dry cleaners. The best part? It takes just 15 minutes, no rinsing required.
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This Week In Your Wallet
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The average long-term U.S. mortgage rate moved above 7% last week for the first time in 2024. Just a year ago, the average 30-year fixed-rate was 6.39%. "Breaching 7% represents a psychological threshold that hadn’t yet been crossed this year and adds to pressures buffeting the US housing market during the crucial spring homebuying season," reports CNN. High rates aren’t the only hurdles would-be homebuyers are contending with. There’s also an undersupply of homes on the market leading to higher than average prices. The National Association of Realtors reported that in March, the median home price was $393,500. That’s an increase
of 4.8% from the year before and the highest March price on record.
Your wedding dress (yes, that white one in the box under your bed) could get a new lease on life. An increasing number of women are repurposing theirs, by dyeing or deconstructing them (for example, removing the bodice and pairing it with jeans), according to The Wall Street Journal. For many, it’s about getting more mileage out of a really expensive purchase, which costs the average bride $2,000. Others are re-wearing for sentimental reasons. Count Natasha O’Kane, who got married in 2021, among them. She dyed her dress burgundy and had it shortened to wear while on a trip to Paris. "I had the most amazing time at my wedding and I felt so beautiful," said O’Kane. "Why wouldn’t I want to keep feeling that way? I loved it just as much the second time I wore it."
Is money (or a lack of it) causing your back pain? It could be, according to research. A study published earlier this year by British researchers says when it comes to serious life challenges people face, financial strain is the most detrimental to physical health; it beat out everything from divorce to the loss of a loved one. As Time reports, being in debt is the money problem that hurts the most–literally. For example, according to a recent study, borrowers with chronic or high debt are more likely to suffer from
inflammation and joint pain by age 50. At the root of it all is stress, which can weaken the immune system, elevate blood pressure and cause a person to take up bad habits like drinking more, not exercising and eating junk food. For tips to take the pain away, click here.
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From The Farmers Market To Whole Foods With Starr Edwards
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"It’s a different way of thinking about work and home life and raising children. We honestly just wanted to help inspire people to be able to have families."
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$200, a used Vitamix and a desire to make some extra cash to support her young family. That’s all it took for Starr Edwards to launch Bitchin’ Sauce. From its small beginnings at the San Diego Farmers Market, the company has grown into a $50 million business.
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So how did Edwards do it? She sits down with Karen Finerman on the How She Does It Podcast to explain just that. "Scaling was so organic and so slow because I didn’t understand the full potential of the opportunity," Edwards says. "So it was like, okay, now we’ll do two Vitamixes. Now we’ll do four Vitamixes. And then, a couple of years later we splurged and got actual manufacturing equipment that could make us go so much faster."
Eventually, Bitchin’ Sauce was discovered by Whole Foods. From there, it was off to the races. Edwards’ brand can now be found on store shelves everywhere from Costco to Target. She doesn’t do it alone though. Today, Bitchin’ Sauce employs over 50 people. Listen in to hear about why Edwards’ family-first focus is a big part of Bitchin’ Sauce’s success.
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Ask Jean
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Today's question comes from Megan. She writes: I am selling my vehicle and the buyer wants to pay using a credit card via PayPal. What fees or tax considerations should I factor into the sale?
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Thanks for your question, Megan. When selling on PayPal–and especially, more expensive items, like your vehicle–there are a number of things you’ll want to consider. Let’s dive into them.
First, fees. PayPal charges sellers a percentage of the transaction amount, plus a fixed fee for each transaction. The percentage ranges from 1.9% to 3.49% and the fixed fee will run you between $0.05 and $0.49. You didn’t say how much you are selling your vehicle for, but I am assuming it's for a considerable amount. Make sure you’re calculating the hit you’ll take and factor it into the sale price.
Next, taxes. If you’re selling your vehicle for a profit, that’s considered a capital gain by the IRS, meaning it does need to be reported on your tax return. How much of a gain? To find that out, add up the cost of any improvements you’ve made to your vehicle during the time you’ve owned it. Subtract it from the amount you’re selling it for. That’s the amount of capital gains tax you will be liable for. And BTW, capital gains need to be reported a certain way, via the IRS Form 1040, Schedule D.
Keep in mind too that if you’re accepting payment for the vehicle via credit card, you do run the risk of a chargeback. If the buyer disputes the transaction with their credit card company (say, for example, they find something wrong with the vehicle), PayPal may deduct the amount you were paid from your account. Note too that PayPal does not–we repeat, does not–offer any protections for the sale of motor vehicles, which makes the use of PayPal to sell a vehicle pretty risky, if you ask me. The internet agrees. If you search "PayPal car sale scams," you’ll see a bunch of red flags, like this one, so proceed with caution, Megan.
Regardless of how you accept payment for the vehicle, make sure you keep good records of the sale. This includes creating a bill of sale (more on that here) and hanging on to any written agreements between you and the buyer. These documents will be important for tax purposes, and for any disputes that may come up post-transaction. Good luck!
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Submit your questions to Jean here.
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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. T2823971.
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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