| Subscribe Read in Browser |
 |
|
|
|
|
| Closing The Gender Pay Gap For Women Of Color |
 |
Research has shown women earn just 82 cents for every dollar men bring home. And it’s been a slow process to get to that number. For example, in 2002, we earned just 80 cents to the dollar compared to men.
For women of color, the situation can be even worse, with the average Black woman earning just 64 cents for every dollar a white man earns. According to experts, it will take a whopping 120 years to close that gap.
Dasha Kennedy, founder of The Broke Black Girl, is working to change that. This week, as the nation marks Black Women’s Equal Pay Day, Kennedy joins Jean Chatzky on the HerMoney Podcast* to talk about how The Broke Black Girl grew from a Facebook group to a go-to source for educating women about how to better manage their money.
In her own life, Kennedy dug herself out of $20,000 in credit card debt. The key to doing so was "10 tiny savings tips" she lives by, including being intentional about spending, which starts with making sure every purchase has a purpose. "It’s just me asking myself a simple question. Why? Why am I buying this?" explains Kennedy. "For me, spending intentionally is me asking a question before I swipe my card, before I click process payment, before I send it to the checkout." |
|
| The HerMoney Podcast is made possible by Edelman Financial Engines. |
|
|
|
| Get Your Free Retirement Review |
| Sponsored by |
 |
|
When you think about retirement, do you have a plan designed to help make your money last as long as you do? That is the biggest fear—by far—for women. To help make sure you’re ready for the future, schedule a Free Retirement Review and Financial Plan.¹ This special offer running through July 31 includes:
• A guide toward your optimal retirement
• Personal investment recommendations
• An estimated retirement income summary, including Social Security benefits
Head here to receive yours today.
|
|
|
|
| This Week In Your Wallet |
 |
Who are you? If you scanned your wedding reception asking that question, you aren’t alone. Plus ones who have no connection to the bride or groom have become common. But as weddings become more and more expensive, those who are prepping to tie the knot might be wondering, is it time to do away with the plus one? Yes, argues Faith Hill for The Atlantic. "No plus-ones. You heard me. The couple invite their actual loved ones only. If that includes partners or pairs of friends who both happen to have made the cut on their own, then lovely," she writes. "Otherwise, guests can do something scientifically proven to be achievable: Socialize on their own." Not only is it a great way for engaged couples to save cash, as Hill explains, there are upsides for your guests, too. "One thing you hear a lot as a single young adult and a journalist writing about weddings—not that I’d know!—is that attending one is a great way to meet someone," writes Hill. "I used to hate that sentiment. But now I couldn’t agree more: It’s a perfect way to meet a friend."
Imagine getting locked out of your bank account for months. That’s the reality for more than 100,000 customers of the fintech app Yotta, and other similar startups. Here’s why: "Since Yotta, like most popular fintech apps, wasn’t itself a bank, it relied on partner institutions including Tennessee-based Evolve Bank & Trust to offer checking accounts and debit cards," reports CNBC. "In between Yotta and Evolve was a crucial middleman, Synapse, keeping track of balances and monitoring fraud." Things went south in May, when Synapse, while dealing with a bankruptcy debacle, shut off access to tech used by banks to process transactions, freezing customers out of their accounts. Some customers have been able to access their funds, but many likely won’t be so lucky. "There is a shortfall of up to $96 million in funds that are owed to customers, according to the court-appointed bankruptcy trustee," notes CNBC. Where’s the FDIC in all this? Unfortunately, because Yotta and other similar apps aren’t banks, they can’t intervene on behalf of customers. As The New York Times reports, advice from the bankruptcy court judge was simple (and not all that helpful): "He suggested that depositors might hire lawyers of their own to sue those involved," writes Rob Copeland for the NYT.
Have you mastered the "fine art" of splitting a check? Fear not, NPR is here to help with expert advice on how to handle six common scenarios you might face while dining with friends. One of them: You’re the only one at the table who didn’t order alcohol, but your friends want to divvy up the check evenly. Kiki Aranita, a food editor at New York Magazine and former restaurant owner says it’s as simple as speaking up. "Just be like, 'Hey guys — I didn't drink.' Usually, that's enough for everyone to reconfigure the bill to make it fairer. The problems only arise when you don't speak up," she notes. On the flip side, if you’re the one imbibing, make sure you’re conscious of the cost. "Maybe pick up a larger portion of the tip to make up for your drinks," suggests Aranita. PS: HerMoney rounded up the six best apps to use when splitting bills with friends – because no one likes those awkward math moments. |
|
|
|
| Things That Save You Money |
| Bye, bye boredom. Here are some of the best free activities to keep your kids busy this summer. Have one to add to the list? Drop us a line here. |
| ● |
On the first Saturday of every month, Home Depot hosts in-store workshops for kids. The hands-on activities are totally free and include all materials (oh, and adorable kid-sized orange aprons). |
| ● |
Attention, bookworms! Barnes and Noble’s annual Summer Reading Program is underway. Read eight books, write about them in this journal, and turn it in for a free book from a Barnes and Noble store near you. |
| ● |
Are you a Bank of America cardholder? You could be getting free admission to museums across the country on the first weekend of every month through Bank of America’s "Museums on Us" program. Check out all the details and the list of participating locations, here. |
| ● |
Get your craft on with free workshops–in person and online–courtesy of Michael’s. Note, you will have to cover the cost of supplies for certain classes. |
|
|
|
|
| Ask Jean |
 |
| Q: |
Today's question comes from Shawna. She writes: My 17-year-old daughter is interested in a retirement account or high-yield savings account (HYSA). I am considering a Roth IRA account but I would love to hear your suggestions for her. She plans to attend college and become a high school teacher, which would have a public employee’s retirement fund pension once she starts working. |
| A: |
If there’s one thing people regret not doing sooner it’s saving for retirement, so kudos to your daughter for wanting to get the ball rolling at such a young age.
I don’t think this is an either-or scenario. It’s likely your daughter would be best served (and more financially secure) with a combination of a retirement account, like a Roth IRA, and a HYSA. As you might know, contributions to a Roth IRA are made with after-tax dollars, so further down the road when she wants to make withdrawals, she can do so tax-free. This makes sense for a young person who more often than not will be in a lower tax bracket now, versus when they retire.
Now, on to the HYSA. Today, interest rates on these accounts hover in the 4.50 to 5.30% range, making them a great place for your daughter to build up emergency savings or put money she may need for college expenses. Note, that the interest she will earn via the HYSA is taxable and the rates can fluctuate.
Once your daughter has a solid foundation, she may want to kickstart her retirement savings by opening an investment account in the near future. As long as she has a handle on her schoolwork, it might be a good time for her to educate herself on investing via books, or online programs like InvestingFixx, HerMoney’s investing club for women. The first month of InvestingFixx is free, and IMO, could make a great mother-daughter activity. |
|
| Submit your questions to Jean here. |
|
|
|
| More For You To ♥ |
💛 Thank you to Gainbridge® for supporting the HerMoney podcast. Gainbridge® created ParityFlex™, a multi-year guaranteed annuity², to offer women security and flexibility at a time when they need it the most—retirement. Learn more about ParityFlex™ here.**
📕 Prime Day came early! HerMoney’s "How to Money" paperback book is officially on sale. Learn how to money in our in-depth, full-color illustrated guide from Jean Chatzky, Kathryn Tuggle, and the team at HerMoney.
|
|
|
|
| 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. AM3625086.
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. |
**This is a sponsored post
¹ Limit one complimentary offer per household, per 18 months. Offer ends July 31, 2024, and is only applicable to households with a minimum investable assets of $250,000. Offer criteria may be waived at Edelman Financial Engines’ discretion.
² Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, there may be a 10% federal tax penalty. Withdrawals may result in a surrender charge or a market value adjustment (MVA) and excess withdrawals may result in a reduction of future payments under the guaranteed lifetime withdrawal benefit. Guaranteed Lifetime Withdrawal Benefit provided so long as your account value hasn’t gone to $0 due to excess withdrawals. Annual Percentage Yield (APY) rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. ParityFlexTM, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company in Zionsville, Indiana. |
|
