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| Stat Of The Day |
| $580 Million |
File this under unexpected side effects. The four biggest U.S. airlines are set to save $580 million on fuel this year due to a 10% decline in average passenger weight, made possible for many by GLP-1 meds. Will it transfer to cheaper airfare? Fingers crossed. |
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| Renting Your Home Or Sending A Kid To College? This Insurance Matters. |
If you rent your home or have a child away at college (with all their tech gear), you’ve probably at least thought about renters insurance. About 55% of U.S. renters have it (and many landlords now insist on it), but even when it’s an option, it’s worth a serious look.
Still, the questions we hear most often about renters insurance are the simple ones – how do I get the best price, and how much renters insurance do I actually need? This week on HerMoney.com, we’re breaking it all down.
As you compare policies – whether for yourself, or a college student (because in many cases, they should have renters insurance!) – one detail to watch closely is replacement cost vs. actual cash value. Actual cash value factors in depreciation, meaning older items pay out for far less than what it would cost to replace them today.
"Sometimes, in a quote for personal possessions, insurance companies will list actual cash value, because it will bring down the price of the quote," warns Lisa Gill, an expert with Consumer Reports. "But what you really want is full replacement cost." |
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| This Week In Your Wallet |
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Americans 70+ control an estimated $53 trillion in wealth, making them prime targets for scams. Often, it’s adult children with vulnerable older parents who first sense something’s off. But stepping in isn’t always easy. The New York Times is digging into how families can help protect older loved ones from money mistakes, including using a multi-step approach. Start by sharing what they taught you about money. Then, layer in what you’ve learned from financial professionals. Lastly, when possible, bring in a trusted third party to offer guidance. "What I share with my clients, especially when it comes to their parents, is: Blame it on me," says Jilenne Gunther, director of the BankSafe Initiative at AARP. "Approach it in an educational manner versus ‘I know more than you now’—and I think they will appreciate that."
President Trump’s proposed 10% cap on credit card interest rates sounds consumer-friendly, but it could seriously backfire. As Joe Nocera writes for The Free Press, a hard cap would likely push banks to slash risk, causing millions of people to lose access to credit altogether. Anyone with a credit score below 650, or even living in a "high-risk" ZIP code, could see their cards disappear. Even responsible cardholders who pay in full each month might get cut. And if you do keep your card? Expect fewer perks, less cash back and more sneaky fees. Which is what it was like "before the 1980s, when banks figured out they could offer cards to a broader strata of consumers by charging higher interest rates," writes Nocera.
For many middle-income Americans, health insurance now costs more than their mortgage. As The Wall Street Journal reports, the expiration of Affordable Care Act (ACA) subsidies means the typical ACA enrollee could see premiums jump 114%, from about $888 a year in 2025 to $1,904 in 2026. The sticker shock is pushing some to drop coverage entirely. Take 47-year-olds Lenny and Mandee Wilson. Last year, they paid $255 a month for a bare-bones ACA plan. Now? It’s $2,155 a month – nearly triple their monthly mortgage payment. They’ve decided to go without insurance. "If we step off the ladder wrong and make a trip to the ER or have to spend the night in the hospital for any reason, that would pretty much wipe us out financially," Lenny tells the WSJ. |
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| Ask Jean |
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| Q: |
Today’s question comes from Melissa. She writes: Any recommendations for retirement calculators you’ve found to be accurate? |
| A: |
The AARP retirement calculator is a solid place to start. It walks you through a simple, step-by-step questionnaire that accounts for Social Security and other potential income sources (like proceeds from the sale of real estate and inheritances). You’ll get a detailed chart of your income sources over time and identify potential gaps. And, you can tweak the numbers to see what actually moves the needle when it comes to not outliving your money.
Or, one of my personal faves – FinanceFixx’s Pre-Retirement Checkup. If retirement is about 10 years away (or closer) and you’re not 100% sure you’re on track, this six-week program helps you get clarity, confidence and a concrete game plan.
Inspired by my Money Makeover methodology (as seen on Oprah, the Today Show and PBS’ Opportunity Knocks), it’s designed to help you take control of your finances, get clear on your goals and understand what it will take to get you there.
Our next Pre-Retirement Checkup kicks off February 24 – and heads up, spots tend to go fast. Learn more and save your seat here. |
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| Submit your questions to Jean here. |
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