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| Stat Of The Day |
| 71% |
Home for (much longer than) the holidays. Today, 71% of 18-24 year-olds live with their parents or other relatives, as Sherwood reports.
Giving your child a couch to crash on while they figure things out is what any caring parent would do — but it can hamper your ability to save for retirement. HerMoney can help you balance both. |
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| What The Fed’s Latest Rate Cut Means For You |
The Federal Reserve announced Wednesday it’s cutting interest rates by a quarter percentage point. This marks the third time the central bank has done so this year, reducing rates by a total of 1 percentage point since September.
Another noteworthy nugget of intel from Wednesday’s Fed announcement? Officials will likely slow up their rate-cutting pace and only do so twice in 2025. While the era of high rates has made borrowing costly, it’s been a way for people with money sitting in HYSAs (high-yield savings accounts) and CDs (certificates of deposit) to earn extra coin. With the Fed moving at a slower pace, it's still better news for savers, reports CNBC. Yields on certain savings accounts and CDs continue to outpace inflation.
Now is the time to secure the best rate for your savings account or CD. Whether you’re opening a new CD or renewing a current CD, you should aim for the best rate rather than settling for whatever your current financial institution is offering.
CD Valet is where savers go to see the best CD rates from community banks and credit unions. Visit CD Valet to learn about Community Savings 12-month CD at 4.55% APY**, available nationwide. |
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| Your Top 5 Questions on CDs, Answered |
CDs often get dismissed as "your parent’s savings plan"—safe but, let’s be honest, a little boring. But in today’s (still) high-interest-rate environment, they’re making a strong comeback as a smart choice for short- and medium-term savings. With inflation cooling and the Fed expected to cut rates again in 2025, these great rates won’t last forever.
If you have a CD that’s recently matured, you’re not alone. A year ago when rates were hovering at 5% or more, millions of Americans bought CDs and many of them were set to mature this year. If you’re one of those people you’ll need to decide what to do with that money next — and avoid some costly mistakes. Here's what you need to know. |
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| This Week In Your Wallet |
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Hot flashes, cold shoulders. 70% of millennial women say they’re prepared to make major career changes to cope with the side effects of menopause. According to a new survey from Carrot Fertility, millennial women (who represent the biggest share of the workforce, btw) said they would be willing to go part-time, change jobs or retire early if it meant more easily dealing with things like hot flashes, brain fog and other menopause symptoms that impact productivity. "This generation is very vocal about their workplace challenges or anticipated workplace challenges and they are thinking ahead about how menopause might affect their career growth," Carrot co-founder Asima Ahmad said in an interview.
Deck the halls with ‘doom spending.’ A new study shows Gen Z’ers have upped their holiday spending this year by over 20% – a bigger jump than any other generation. Experts say the increase is thanks to doom spending, or in other words, spending to distract from pessimistic thoughts about the future. "All of these negative events and constant fear and literally doom and gloom that younger consumers are exposed to – geopolitics, macro-environment, local and social news – they [Gen Z] just grew up in a very non-sheltered life compared to other generations," said Shikha Jain, who worked on the report, tells USA Today. "They don’t have many ways to self-soothe or cope."
Do you have a Flexible Spending Account (FSA)? If so, check the balance, ASAP. An analysis from the Employee Benefits Research Institute (EBRI) shows it’s common for FSA holders to leave major money on the table at the end of the year – with roughly half of accountholders giving an average of $441 back to their employer. "While some FSAs have a rollover feature in which up to $640 can be rolled over from one year to the next, roughly one-third of the accounts in EBRI’s FSA Database are "use-it-or-lose-it," implying that any unspent funds by the end of the plan year are forfeited back to the employer," notes EBRI. |
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| Things That Save You Time |
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| How ‘Swedish Death Cleaning’ Can Change Your Life |
Swedish death cleaning. It sounds morbid. But, it’s actually the opposite – and can have big benefits, namely, reducing clutter and stress.
Popularized in (you guessed it) Sweden, the decluttering method involves getting rid of things you don’t need with an end goal of making sure your family has less stuff to deal with after you’ve passed. Essentially, it’s all about passing items on to family members while you’re still here to fill them in on why items are meaningful to you.
Psychologist Katarina Blom joined the HerMoney Podcast* this week to share tips for those who want to tackle Swedish death cleaning in the New Year themselves, or with loved ones.
As Blom says, the process can feel daunting, especially if you’re starting it with older relatives. She says the best way to approach it is by being open and asking your loved one what they would like to happen with (fill in the blank with an important item) once they’ve passed.
"Some parents might be shocked but I think if we give it time and keep asking this question every now and then, they will probably open up," Blom says. "And I'm pretty sure that some parents will feel relieved that their child or their friend is bringing the subject up because maybe they have had this worry." |
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| The HerMoney Podcast is made possible by Edelman Financial Engines. |
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| Ask Jean |
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| Q: |
We usually give my son cash and a few gifts and gift cards for Christmas. He’s an only child so we spend about $500 in total. He now has a serious girlfriend. How much should we spend on her? |
| A: |
Ooo…this is a juicy one. I have my thoughts, of course, and so did the ladies of the exclusive HerMoney Facebook group (many of whom were struggling with similar situations!). Here are some of my faves: |
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"We are big believers in experience gifts," says Elizabeth. "Dinner out, the theater, sports. The 2 week girlfriend gets less than the 2 year girlfriend." |
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"The first Christmas with my now-husband’s family his parents got me fuzzy socks and a delicious smelling body scrub (I got them a candle)," shares Lindsey. "That felt entirely appropriate for the under-a-year timing." |
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"I spend about $100 on the girlfriends," says Aria. "Last year, one got a Lululemon gift card and a little customized makeup bag (from Etsy). This year, my other son and his girlfriend are getting an apartment in January so I got them cooking lessons from Groupon." |
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"Get her something you think she’d appreciate or a gift card for an activity together," says Kathy. "Stick to what you can afford…so if you reduce his budget from $500, that’s ok." |
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| My opinion? You certainly don’t need to spend anywhere near the amount you typically budget for your son. As one person noted, if you’re on a tight budget, you might even need to reduce what you spend on him to buy something for his girlfriend. If you’re all celebrating together, I do think you’ll want to get her something she can unwrap (here’s a nice roundup of S.O. gifts from The Knot). Otherwise, I’m a big fan of experience gifts, as a number of others suggested. |
| Submit your questions to Jean here. |
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| More For You To ♥ |
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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. |
*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. AM4002839.
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.
**Annual percentage yield (APY) effective as of 12/16/2024 and is subject to change. $1,000 minimum to open. All balances earn disclosed APY. APYs apply when all principal and interest remain on deposit for entire term. Penalty may be assessed for early withdrawal. Additional terms and conditions may apply. Community Savings Member FDIC. |
| ***This is a sponsored post |
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