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| Stat Of The Day |
| $1.06 Million |
Turns out, being a millionaire is the new normal. Kinda. According to Federal Reserve data, the "average" American household is sitting pretty on a net worth of $1.06 million. It’s the first time that figure has crossed the million mark, as The Hustle reports.
Before you compare your bank account, remember this figure represents average net worth, not the median. Ultra-wealthy households skew the average upward, while the median net worth, which stands at $192,900, is a more accurate snapshot of most Americans’ finances. So, if you’re not sitting on a million-dollar cushion, you’re far from alone.
Still….If you’re looking to grow your wealth, FinanceFixx has got you. Our 4-week program will help you build a solid budget, make smarter money moves and get you on the path toward reaching – and exceeding – that $1 million mark. |
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| This Week In Your Wallet |
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When Moody’s gets moody, what happens to your cash? ICYMI (tho we’re sure you didn’t), Moody’s, a global credit rating and financial services agency, lowered the United States’ credit rating. As CNBC reports, the decision can have ripple effects on your finances, impacting borrowing rates for everything from credit cards to mortgages. "When our credit rating goes down, the expectation is that the cost of borrowing will increase," Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management, tells CNBC. "That’s because when a country represents a bigger credit risk, the creditors will demand to be compensated with higher interest rates."
Think of it as a ‘gift with purchase’ for opening (or contributing to) a college savings account. As The New York Times reports, May is a great time to open or contribute to a 529 account, thanks to cash incentives and other bonuses offered by some states. "Many students are about to move from one phase of their education to the next, whether it’s completing kindergarten or finishing middle school and moving on to high school," reports the NYT, noting that this time of year, education (and saving for it) is often top of mind. "Offers range from modest matching gifts for opening or adding to an account to sweepstakes-style events dangling thousands of dollars in prizes." For example, Pennsylvania’s 529 program is giving savers a shot at $5,529 if they contribute at least $10 this month.
Empty nest? More like an empty wallet. A new survey from Savings.com shows the percentage of parents supporting their adult children has hit a 3-year high, with the average parent shelling out $1,474 per month to help their kiddos cover everything from groceries to cell phone bills. Another startling stat? "Working parents who support grown kids contribute over 2X more money each month to their adult children than they do to retirement funds," the survey notes. If you’re riding the parental gravy train, here’s your warning: 40% of parents say they’ll be cutting off funds within the next two years. |
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| How The Right Financial Advisor Can Bring Clarity & Confidence |
Ask most people what a financial advisor does, and you’ll probably hear something like, "My advisor manages my investments." But that’s only one part of the picture. And frankly, not even the most important part.
Unfortunately, the process of working with an advisor is a mystery to many people, as Pam Krueger, CEO of Wealthramp, writes for HerMoney. As she points out, a recent survey shows that a third of Americans didn’t know how a financial advisor could help them.
As Krueger explains, if you’re going the advisor route, it’s essential to work with one who’s not just skilled but truly aligned with your goals. "Too often, we reduce financial advice to fees and past performance. But what really matters is what happens after you say "yes" – after you’re in the relationship," Krueger writes. "Are you getting a safe space to ask your most important questions? Do you feel empowered to make decisions, even during times of uncertainty?"
If not, Krueger says it’s OK to expect more of your financial professional. "Because when you work with the right advisor, you’ll feel the difference. You’ll feel more confident, more in control, and more excited about what’s ahead." |
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| Things That Save You Money |
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| Ask Jean |
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| Q: |
Today’s question comes from Sandra. She writes: My Verizon bill seems to creep a little higher all the time. One of the major contributors is insurance on three devices, which is $816 per year. Any ideas on how to save? |
| A: |
$816 per year for insurance on three devices does seem steep, Sandra. Especially since it’s only part of your bill. The good news? There are things you can do to potentially cut costs.
First, ask yourself whether you really need coverage for all three devices. In fact, whether you need coverage for any of the devices? If you had to replace one and pay for it out of pocket, how much of a hardship would it be? By my calculations, that $816 would be enough to cover at least one if not a couple of replacement phones — especially if you’re open to refurbished devices or getting models that aren’t the latest/greatest.
If you still want the coverage, see if there’s a less expensive way to get it. First, take a peek at your credit card benefits. Some issuers offer cell phone protection if you pay your bill using the card. It’s a lesser-known perk that could help you save.
You could also explore other insurance options from third parties. For example, if you have an iPhone, look into the cost of AppleCare+; if you have a Samsung, there’s Samsung Care+. For instance, with AppleCare+, the price varies depending on your device, but to give you an idea, a year of coverage for an iPhone 16 will run you about $120.
Aside from these options, there are a number of other third-party insurance providers out there (for example, Best Buy Total, which covers multiple devices and costs $179.99 per year). If you don’t want to go the insurance route, you could also set up an account you fund with a small amount each month. Then, tap into it if something happens to one of your devices.
The other thing you should definitely do? Review your bill line by line. Are there any other tweaks you could make to save? It doesn’t hurt to pick up the phone and call Verizon, or go there in person, to see what other options you may have to cut costs. If there’s no wiggle room there, that’s your sign to shop around. One HerMoney staffer recently switched from Verizon ($200+ per month) to Spectrum, and now pays just $30 a month for two devices. |
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| Submit your questions to Jean here. |
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| More For You To ♥ |
🧯 Is economic uncertainty causing the FIRE (Financial Independence, Retire Early) movement to fizzle out? One of its founding fathers, J.L. Collins, weighs in on the latest HerMoney Podcast.
📈 Got plans tonight? Cancel them. InvestingFixx, HerMoney’s women-only investing club, meets at 8:00 PM EST. Join our CEO Jean Chatzky, CNBC’s Karen Finerman, and hundreds of savvy women who are learning how to build their wealth, one smart move at a time.
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