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Stat Of The Day
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52%
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52% of Gen Zers say money issues are taking a toll on their mental health, according to new data from Bankrate. If that’s you, or someone you know, then consider signing up for our 8-week financial coaching program that starts on 6/11. It’s dedicated to young professionals. Participants save an average of $1,500 during the program (which means it pays for itself many times over). Sign up here and use the code SUMMER20 for a 20% discount.
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How To Make Financial Trade-Offs With Confidence
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In so many areas of life, whether we’re juggling work and family commitments, career demands, or even a yoga class — balance is the key to success. And there’s perhaps nowhere we see this reflected more than with our finances… We ALL have competing financial priorities, and we’re making financial trade-offs every day, whether we realize it or not.
This week, HerMoney CEO Jean Chatzky is joined by Michael Norton, professor at Harvard Business School, and Heather Winston, certified financial planner and assistant vice president, head of product strategy for individuals within Retirement and Income Solutions at Principal Financial Group, to discuss how to understand the pros and cons in every financial trade-off we make. We also dive into how to match your to-do list with your personal priorities, and the best ways to break down our trade-offs into bite-sized pieces that you can do habitually. Join us for the discussion here — it’s one you won’t want to miss.**
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This Week In Your Wallet
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New protections are coming soon for those who use "buy now, pay later" platforms like Klarna, PayPal, Affirm and others. The safeguards include many of the same kinds of backstops that credit card users have, including being able to dispute charges, get refunds for returned items and access billing statements. "Regardless of whether a shopper swipes a credit card or uses ‘buy now, pay later,’ they are entitled to important consumer protections under longstanding laws and regulations already on the books," said Rohit Chopra, Director of the Consumer Financial Protection Bureau. As The New York Times reports, the new rule will go into effect in roughly two months. Before then, there will be a public comment period. You can weigh in on the proposed protections, here.
Is part-time work the answer to your too-busy life? For an increasing number of people, the answer is yes. "The number of people opting to work part-time has been climbing since the pandemic’s recovery, reaching new highs in recent months," writes Rachel Feintzeig for The Wall Street Journal. "Many of us want more time for family, hobbies or side gigs. Some would take a pay cut for the privilege." Notably, some people are able to make the case for cutting their hours and keeping their salary intact. If you want to broach the part-time convo with your boss, don’t start by detailing how exhausted you are. Instead, highlight your accomplishments and how you want to contribute in the future. "Explain that to deliver those wins, you want to discuss working the hours you’re most productive," writes Feintzeig. "Ask the boss: ‘What do you think’ You’re not making demands; you’re starting a
collaborative conversation."
Relief could be on the way for Gen Zers who are feeling the financial heat from inflation. "Based on that generation-specific measure, yearly inflation in March was running about half a percentage point higher for Gen Z than for every other cohort," writes Paul Davidson for USA TODAY. The reasons? Their incomes are typically lower since they are just starting careers. They also are more likely to spend in categories where inflation has been hotter, for example, rents and meals out. Hope is on the horizon though, according to experts. For example, economists at Moody’s say rent prices should come down in the second half of the year, as should car insurance rates, which have skyrocketed recently. "At the same time, Gen Zers devote much less of their income to health care, an expense that's projected to rise dramatically this year," notes Davidson.
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Things That Save You Money
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If Your Budget Isn’t Working, Here’s Why
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"Couponing is something that I don’t think gets enough credit nowadays."
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Does the 50/30/20 budgeting rule (where 50% of income goes to your needs, 30% towards wants and 20% for emergency and retirement accounts) need an overhaul? Sean Pyles, host of the Smart Money Podcast says yes and that in light of today’s economy, the 60/20/20 budget provides a better framework to follow.
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Pyles says there have been several moments in his life when he spent half his income on rent. "So in that case, you can adjust these categories in a way that works for you," he tells Jean Chatzky on The HerMoney Podcast*. "60/30/10 might be more realistic, and 60/20/20 might be even better, where you allocate 20% of your income to wants, and then 20% to debt payments and savings."
Pyles also stresses that it’s important to make sure at least 10% of your monthly take is going towards savings — not savings and debt. To do this, he advises taking advantage of areas where you can cut costs like relocating to a more affordable apartment or couponing at the grocery store and drugstore. "Couponing is something that I don’t think gets enough credit nowadays," Pyles says.
For more on how Pyles says we can make budgeting easier (and yes, even more fun!) head here.
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| The HerMoney Podcast is made possible by Edelman Financial Engines.
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Ask Jean
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| Q: |
My little one received paper stock certificates inherited from a deceased family member. They are planning on selling to invest in index funds instead. Paper stocks are signed, with instructions. They have the death certificate. So…what happens next? Do they have to locate the transfer agent for each stock? Can they "cash out" and have the funds go to their investment account?
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The good news is that you have the opportunity to build a young investor. The administratively difficult news is you have to follow a process. Yes, you need to contact the transfer agent for each stock. They are usually listed on the company’s website in the investor relations section. The transfer agent will take it from there — sending you instructions for how to change the ownership of the stocks and help you move it into your brokerage account. Once the shares have landed there safely, you and your young’n can decide whether to sell and what to do with the money. I’d suggest you make a scavenger hunt out of it. Follow each step of the process along with your child and start researching the index funds you want to move the money to down the road.
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Submit your questions to Jean here.
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More For You To ♥
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💛 Thank you to Gainbridge® for also 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.**
🏢 As a business owner, you want to create an environment where your employees can truly grow and prosper. But how, exactly, do you make that happen? A financial wellness program can be effective and affordable no matter how many people you employ. Here’s how to get one started at your company.**
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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.
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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. AM3421374.
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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**This is a sponsored post
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.
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