🏡 What to know about this week’s Fed meeting

Stat Of The Day

6.20%

Mortgage rates dropped recently to their lowest levels since February 2023. According to Freddie Mac, the standard, 30-year fixed-rate mortgage averaged 6.20% at the close of last week. That’s a far cry from about a year ago, when rates reached a two-decade high of 7.79%. Rates are set to come down further following this week’s Fed meeting. For more on what it could mean for you–and your money–scroll on.

As the Fed Prepares To Lower Interest Rates, Here’s How It Affects Your Money

ICYMI, the Federal Reserve is expected to lower interest rates at its meeting this week, by at least 25 basis points — or 1/4 of a percentage point. Although this is the first rate reduction since the pandemic cuts of 2020 and 2021, it’s not expected to be the last.

As we enter this new era of falling rates, HerMoney is breaking down what you need to know about navigating the changing financial landscape and how it will impact your loans — and your savings.

For example, those with money market accounts or high-yield savings accounts may see their returns dwindle quickly, especially if rate cuts come in quick succession.

"The top-yielding savings accounts, money market accounts, and money market funds will be very sensitive to interest rates coming down," notes Greg McBride, Chief Financial Analyst at Bankrate.com.

However, he says that the most competitive offers on money market accounts should continue to outpace inflation for the foreseeable future. In other words, they’re still worth it.

What Are Certificates of Deposit? The Top 5 Questions People Are Asking

In the high-interest-rate environment we’ve been living through over the past few years, CDs, or certificates of deposit, have made a comeback as a smart choice for short- and medium-term savings. With inflation cooling and the Fed expected to cut rates (see above), the time to lock your money up may be sooner rather than later.

On the HerMoney Podcast*, Jean Chatzky sat down to talk with banking veteran John Blizzard, CEO and President of Seattle Bank and the CEO of CD Valet, to talk through the top 5 questions he gets asked about CDs. One of them? What’s the difference between bank (or retail) CDs and brokered CDs?

"Retail CDs are CDs you buy through your bank or credit union," explains Blizzard. "Brokered CDs are CDs you buy through a brokerage firm. Brokered CDs are much more like a bond and you're taking market risk."

For more of what you need to know about CDs, head here.

This Week In Your Wallet

Want to save more? Tuning out political news could be the answer. As Julia Carpenter writes for The Wall Street Journal, "election fatigue" had her overspending this summer, and she’s not alone. "Every night out called for a dinner reservation or a fancy bottle. That little part of my brain said, "Snatch at this chance for a cheerful distraction before you open your phone and feel despair again," she writes. What’s an election-weary woman to do? Control what you can control, say the experts. "You really can’t control everyone else around you or even convince a lot of people around you to think differently," says Julianne Culey, an assistant director at Arizona State University’s Reynolds Center for Business Journalism. "So it makes sense that one thing I can control is whether or not I go to Starbucks today. That seems simplistic, but that is something you have control over."

An increasing number of Americans are opting out of having families. The reason? According to a new report from MassMutual, 23% of millennials and Gen Zers say they don’t plan to become parents, primarily due to financial concerns. "There has been a sticker shock to so many aspects of life over the last few years," Greg McBride, Chief Financial Analyst at Bankrate.com tells CNBC. "That doesn’t inspire the type of confidence needed to make decisions with big financial consequences." If you are planning to start a family, and want to keep your finances in check, here’s a look at what to expect as far as expenses go.

School is back in session. In a growing number of states, a class in personal finance is (or will soon become) a high school graduation requirement. "These courses are much needed, said several financial experts, as their adult clients often don’t know how credit works, how to save and invest, or even how to keep a checking account," reports The Philadelphia Inquirer. Can you make the grade when it comes to personal finance knowledge? Take this quiz to see how much you know about everything from writing a check to overdraft protection.

Things That Save You Time

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Before the holiday travel szn kicks off, bookmark this guide to flying standby. It can save you lots of time if your original flight is delayed.

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Want a more organized kitchen? Don’t look to TikTok for "fridgescaping" tips Instead, take note of what chefs do to clear clutter. For example, don’t waste time (or money) putting your food in clear plastic organizers. Use what you already have, like a loaf pan to hold your granola bars, instead says one expert.

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Flip the script on your to-do list. Experts say a "done" list that includes a running list of everything you accomplished in a day can be the key to increased productivity.

Ask Jean

Today’s question comes from Chris. She writes: I received an email about an Oracle privacy class action suit. I’ve done some Googling, and it seems legitimate, but I’m so weary of scams. How do you verify a class action suit?

Sometimes (and especially recently), it can feel like it’s a scammer’s world, and we’re just living in it. The good news? There are things you can do to protect yourself, starting with being uber cautious, like you are, Chris.

To get to the bottom of whether a class action suit is legit, here are a few steps you can take:

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Look closely at the sender’s email address. Is it from a recognizable domain or a reputable legal firm? Did the sender use a free email service, like Gmail? If they did, you have reason to be wary.

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Fire up Google and search for official information. Start by heading to the website of the company involved in the suit. In your case, because it’s about Oracle, it would make sense to visit the company’s official website to see if there are any updates or press releases concerning the class action. FYI, there is currently a class action suit involving Oracle. You can get up to speed on it here.

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To see if there’s an ongoing class action suit, search public court records. Many courts have databases where you can look up the status of a case.

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Does the email mention a specific law firm? Check out its official website. Then, pick up the phone and contact them directly to inquire about the case.

Above all else, if an email is requesting payment details from you, do not provide them. Class action suits generally do not cost money to join.

Submit your questions to Jean here.

More For You To ♥

🎧 When’s the most strategic time to close a high-interest credit card?...Do you need an annuity? In this Bonus Mailbag episode, Jean works with two podcast listeners on their money questions. The HerMoney Podcast is made possible by Edelman Financial Engines. Question for Jean? Please email us here.

💛 Thank you to Gainbridge® for supporting the HerMoney podcast. Gainbridge® created ParityFlex™, a multi-year guaranteed annuity¹, to offer women security and flexibility at a time when they need it the most—retirement. Learn more about ParityFlex™ here.**

📣 Do you have a man in your life with a retirement planning story to tell? HerMoney CEO Jean Chatzky is moderating a special panel discussion on retirement next month in Washington, DC, and we’re looking for male pre-retirees to take part. Interested? Send us a note using this form. PS, panelists will have all travel expenses covered!

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*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. AM3328131.

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.

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¹ 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.