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Stat Of The Day
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8%
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Worried about the next fashion faux pas — skinny jeans, ankle socks or even side parts — sneaking up on you? Unfortunately, Gen Z has now come for our leggings. Shoppers are buying 8% fewer pairs this year than they did in 2022. Experts say the leggings lag is due in large part to Gen Z’s preference for oversized, comfy activewear. Not quite ready to wade into parachute pant territory? HerMoney staffers have found some happy mediums: these polished but comfy taper pants for about $30, and these organic cotton flares for $45 (and they come in different inseams)!
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This Week In Your Wallet
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Chop chop. The Fed (as expected) cut interest rates on Wednesday for the first time this year. Policymakers delivered a quarter-point rate cut, bringing the central bank’s benchmark rate to 4%-4.25%. As USA Today reports, it’s likely the first in a series of reductions. Here’s how the Fed’s decision could impact everything from your mortgage to your savings account.
We like to think that once our kids leave the nest, they’ll fly on their own financially. But the truth? Plenty still circle back for cash. If you’re a parent, it can be hard to determine what kind of support feels reasonable vs. what’s over-the-top. To open up the conversation, we asked 13 readers to share when (and why) they still take money from their parents. Take Allison, a 47-year-old who’s still leaning on her dad for support. “My dad still pays my car insurance,” she shared. “It’s a direct draft from his account, so he may not even realize it. I will never remind him. It’s less than a hundred bucks a month, but I consider it my only inheritance.”
🏆 P.S. Our golden rule? Parents should always put on their own oxygen mask first. Translation? Nail your own money goals – especially retirement – before making your kids’ finances a priority. Want help making sure you’re set? Our 6-week FinanceFixx course for pre-retirees kicks off TONIGHT. Use code SAVENOW for a special discount.
Is ChatGPT your go-to for money advice? For many people – and especially younger generations – the answer is yes. The New York Times reports that more people are turning to chatbots for everything from finding smarter ways to save to picking stocks. A Credit Karma survey found that two-thirds of adults who’ve used generative AI tapped it for financial advice, and nearly 80% of those who followed the guidance said it improved their finances. Still, experts urge caution. “Chatbots tend to take questions at face value and fail to challenge underlying assumptions or gather important context, which could be risky when seeking money advice,” said Tyler Gilley, an associate wealth adviser at the investment firm Halbert Hargrove.
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Things That Save You Money
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Happy National Cheeseburger Day to all who celebrate. The deals are, shall we say, sizzling? Like this one, from Dairy Queen, where you can get a free cheeseburger with any purchase of $1 or more.
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Yikes – identity thieves swiped $47 billion from Americans last year. A good reminder to keep an eye on your accounts and take a few extra steps to protect your money, like checking out these identity theft protection services.
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Do you really need to drop big bucks on salon-quality haircare, or will the drugstore aisle do the trick? Experts say it depends, but there’s one rule of thumb – if you’re going to splurge, do so on essentials, like daily shampoo, instead of conditioner or other treatments.
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Here’s some math your budget will love: renting four premium pieces from Armoire for $89/month is often less than the price of just one dress from brands like Paige or French Connection. Instead of spending hundreds on outfits you’ll wear once, you can have a rotating designer wardrobe at a fraction of the cost — no dry-cleaning bills, no impulse buys gathering dust. Sign up here for up to 60% off your first month of Armoire membership + two free bonus items!
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Quit, Travel, Repeat: The Case For “Mini Retirements”
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Ever dream of quitting work – even just for a little while –to travel, spend time with family, or simply catch your breath? The idea is thrilling…and terrifying.
It’s what Jillian Johnsrud, a financial educator and author of “Retire Often,” calls “mini retirements.” She’s built a life around intentional mini-retirements and on the HerMoney Podcast, shares how you can, too.
A mini-retirement, Johnsrud explains, is a month or longer away from work, not a vacation, but time focused on something meaningful to you. It’s a “maximum effective dose” for unplugging, being present and actually relaxing. “It’s enough time to do something really cool,” she shares. “You can have an amazing adventure or accomplish something significant in a month.”
But let’s talk about the elephant in the room – affording it. Johnsrud says saving an extra 6.5% of your income can fund a month off every other year. Small trade-offs make it possible. “You might say, ‘I’m going to trade my Chipotle burrito bowl that I have every Friday at lunch, because next year I’m going to be eating street tacos in Mexico,'” she says. “I’m not depriving myself. I’m just pushing that luxury I want slightly in the future.”
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Ask Jean
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My kids are in elementary school. I'm wondering, what sort of accounts should I set up for them in addition to savings accounts and 529 accounts?
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Your savings and 529 accounts are an excellent start. Beyond that, you might also want to look into establishing a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) custodial account. These are accounts where funds are saved and invested for a minor’s benefit. Whether it’s a UGMA or UTMA account will depend on the state where the account is established.
Besides saving for your child’s future, there’s a tax perk with these accounts, too. Because the account belongs to the child, the investment income is taxed at the child’s rate, which is often lower than that of the parent. Once your child hits adulthood – 18 years old in most states – they gain full control. Sure, they could spend it however they like, but usually, 18 years is enough time to drive home the point that the money is for the long-term. Here are some tips to start doing just that.
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Submit your questions to Jean here.
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