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☆ 'Guilt tipping' is getting out of control, but signs show consumers are pushing back
▼ + stars: | 2024-03-31 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Indeed, the pressure to tip has increased over the past year, NerdWallet's consumer budgeting report also found — a feeling now known as "guilt tipping." 'Guilt tipping' is on the riseParticularly when it comes to payment prompts with predetermined options that can range between 15% and 35% for each transaction, "the guilt kind of washes over you," Self said. However, "you are not obligated to tip," Self added. Too often, consumers feel obligated to tip, he said. In the end, he said, that will be what causes business owners to scale back on suggested tip amounts or eliminate tip prompts altogether.

Persons: Tim Self, Jgi, jamie Grill, Alex Skijus Organizations: Austin Peay State University, True, Wealth Management Locations: Clarksville , Tennessee, Tampa , Florida

☆ After a difficult application year, college hopefuls have a 'love-hate relationship' with 'Ivy Day,' expert says
▼ + stars: | 2024-03-28 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

A fascination with the eight private colleges that comprise the Ivy League spans decades. What is an Ivy League degree worth? For decades, studies have shown that earning a college degree is almost always worthwhile. A recent report by Harvard University-based nonpartisan, nonprofit research group Opportunity Insights found that an Ivy League degree carries even more weight in the workforce and beyond. In the end, they found that attending an Ivy League college has a "statistically insignificant impact" on earnings.

Persons: Harvard University's, Blake Nissen, Claudine Gay's, Christopher Rim, Connie Livingston, Birkin, Livingston Organizations: The Boston Globe, Getty, Ivy League, Harvard University, Harvard, Princeton, Command, College Board, Brown University, Ivy Locations: Cambridge , Massachusetts

☆ Women experience a 'motherhood penalty.' For dads, there’s a wage 'bonus'
▼ + stars: | 2024-03-26 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch now"For mothers, employment and earnings conditional on being employed fall sharply around the time of birth for women, and, more ominously, may remain permanently lower well after childbirth," the authors of the PNAS study wrote. There is a dynamic that perpetuates itself, according to Jasmine Tucker, vice president of research at the National Women's Law Center. Alternatively, fathers who work full time experience a wage "bonus" when they have children, according to a separate report by the British trade union association TUC. "The gender imbalance in time spent on caregiving persists, even in marriages where wives are the breadwinners." In fact, the motherhood penalty is even greater in "female-breadwinner" families, the PNAS study also found, where higher-earning women experience a 60% drop from their pre-childbirth earnings relative to their male partners.

Persons: Jasmine Tucker, Tucker, Richard Fry Organizations: National Women's Law, TUC, Fathers, Pew Research Center, Pew, CNBC Locations: British

☆ 'The Fed has made two major mistakes in its history,' expert says. Here’s how those impact policy today
▼ + stars: | 2024-03-25 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Federal Reserve Bank Chair Jerome Powell speaks during a news conference at the bank's William McChesney Martin building on March 20, 2024 in Washington, DC. Slowly but surely, recessionary talk is dying down and confidence in the Federal Reserve is picking up. Chairman Jerome Powell indicated that with the economy still growing at a healthy pace and unemployment below 4%, the Fed can take a more measured approach when loosening monetary policy. More from Personal Finance:Here's when the Fed is likely to start cutting interest ratesNearly half of young adults have 'money dysmorphia'Deflation: Here's where prices fellMonetary policy is a balancing act, Higgins explained. At least, that is how it has played out in the past, he said.

Persons: Jerome Powell, William McChesney Martin, Mark Higgins, Higgins Organizations: Bank, Federal Reserve, Fund, Finance Locations: Washington ,

☆ The Fed holds interest rates steady. What that means for your money
▼ + stars: | 2024-03-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Annual percentage rates will start to come down when the Fed cuts rates, but even then they will only ease off extremely high levels. That's up from 4.4% when the Fed started raising rates in March 2022 and 3.27% at the end of 2021, according to Bankrate. Doug Duncan, chief economist at Fannie Mae, expects mortgage rates will end the year at 6.4%, but that won't provide much of a boost for would-be homebuyers. If rates come down and it ramps up demand and there's no supply, the only thing that happens is that home prices go up." Once the Fed cuts rates, "that gives people a little more breathing room," Drury said.

Persons: Brett House, Ted Rossman, Doug Duncan, Fannie Mae, Duncan, Ivan Drury, Edmunds, Drury Organizations: Columbia Business School, Treasury, Fed Locations: Edmunds

☆ FAFSA 'fiasco' could cause decline in the number of students going to college, experts say
▼ + stars: | 2024-03-19 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

"Students have no confidence that they are going to get the financial aid they need to make college affordable and they are opting out." Under the new aid formula, an additional 2.1 million students should be eligible for the maximum Pell Grant, according to the U.S. Department of Education. However, given the slower pace of FAFSA applications being submitted, "the number of Pell Grant recipients will be about the same as last year, despite the new Pell Grant formula making it easier for students to qualify," Kantrowitz said. "The goal of FAFSA simplification was to increase the number of lower-income students applying. FAFSA completion paves the way to college

Persons: Anne Zinn, Kantrowitz, Pell Grant Organizations: National College, Network, Norwich Free Academy, U.S . Department of Education Locations: Norwich, Conn

☆ The Federal Reserve may not cut interest rates just yet, here's what that means for your money
▼ + stars: | 2024-03-18 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

"Interest rates took the elevator going up; they are going to take the stairs coming down," he said. Annual percentage rates will start to come down when the Fed cuts rates but even then, they will only ease off extremely high levels. "The reality of it is, a lot of borrowers are paying double-digit interest rates on those right now," McBride said. Federal student loansFederal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. But undergraduate students who take out new direct federal student loans are now paying 5.50% — up from 4.99% in the 2022-23 academic year and 3.73% in 2021-22.

Persons: Chris Wattie, Greg McBride, McBride, Sam Khater, Freddie Mac's, that's, Ivan Drury, Edmunds, Drury Organizations: Reuters, Treasury, Fed Locations: Edmunds

☆ College is still worth it, research finds — although these majors have the lowest rate of return
▼ + stars: | 2024-03-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

A recent study published in the American Educational Research Journal found that engineering and computer science majors provide the highest returns in lifetime earnings, followed by business, health and math and science majors. Education and humanities and arts majors had the lowest returns of the 10 fields of study considered. "However, there are significant differences across college majors." Overall, the researchers found that the benefits of higher education have held up, even as enrollment has declined and the labor market outcomes for those without a college degree have improved, Zhang said. For workers with a bachelor's degree, education was the lowest-earning field of study, followed by psychology and social work and the arts.

Persons: Liang Zhang, Zhang Organizations: Georgetown University Center, Education, Workforce, Federal Reserve Bank of New, American Educational Research, NYU Steinhardt School of Culture , Education, Human Development, Finance, Ivy League, Georgetown Center, Center Locations: Federal Reserve Bank of New York

☆ Nearly half of young adults have 'money dysmorphia,' survey finds. Here are the symptoms
▼ + stars: | 2024-03-13 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Overwhelming evidence suggests social media has a negative impact on self-esteem. That's not only true for how people feel about their appearance and social status but also their financial wellbeing and economic standing. "Money dysmorphia is kind of like today's version of keeping up with the Joneses," said Courtney Alev, consumer financial advocate at Credit Karma. Not surprisingly, money dysmorphia is even more prevalent among younger generations, according to Credit Karma. Many of those who experience money dysmorphia have above-average savings, Credit Karma also found.

Persons: That's, Credit Karma, Courtney Alev, dysmorphia, Carolyn McClanahan, Karma, Alev Organizations: Credit, Finance, Planning Partners Locations: Jacksonville , Florida

☆ Equal Pay Day highlights an up to $1.2 million salary shortfall for women of color
▼ + stars: | 2024-03-12 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Based on today's wage gap, a woman just starting out will lose $399,600 over a 40-year career, according to the National Women's Law Center. The pay gap worsens significantly for Black and Latina women. For Black women, the lifetime wage gap adds up to $884,800, and for Latina women, the losses total $1,218,000, the nonprofit advocacy group found. Why the gender pay gap persistsThere is no single explanation for why progress toward narrowing the pay gap has mostly stalled, according to a separate report by the Pew Research Center. What it takes to achieve progressNo "one thing" is going to close the wage gap, Tucker said.

Persons: Jasmine Tucker, Tucker, Ofronama Biu, Biu Organizations: Census, National Women's Law, National Women's, Center's, Black, Latina, Pew Research Center, Urban Institute, Employers

☆ 47% of parents still financially support adult children, study finds. Here's how much they spend
▼ + stars: | 2024-03-11 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Many argue it's harder today for young adults to make it on their own. In addition to soaring food and housing costs, millennials and Generation Z face other financial challenges their parents did not at that age. More from Personal Finance:3 ways Gen Zers can build creditWhy can't today's young adults leave the nest? Gen Z, millennials are 'house hacking' to become homeownersBy other measures, young adults are doing well. And yet, 61% of adult children still living at home don't contribute to household expenses at all, Savings.com found.

Persons: Gen Zers, Savings.com Organizations: Savings.com, Finance

In each case, substitute materials were used to make furniture that was less expensive but also less durable than the solid wood pieces that previous generations bought. "In the 1980s, you could buy a sofa for $399. You could probably still buy a sofa for $399," Koehler said. But choosing a more expensive piece isn't necessarily a guarantee of better quality, Koehler said. You can also check the furniture description to see whether it is made from solid wood or particle board under a veneer.

Persons: CoCo Ree Lemery, Lemery, Mark Schumacher, Koehler Organizations: Purdue University, Home, CNBC, telltale

☆ After Biden praises progress on inflation in State of the Union, economists weigh in
▼ + stars: | 2024-03-08 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

In his State of the Union address, President Joe Biden celebrated his administration's progress in the fight against inflation. "Wages keep going up and inflation keeps coming down," Biden said in the annual speech before Congress. Inflation has cooled while wages have ticked higher, but households are still struggling to keep up with the increased cost of living. However, "it is difficult to tell people that inflation isn't so bad as it was, given that it has taken about one-fifth of purchasing power away from people," he said. The consumer price index, a key inflation barometer, has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3.1% in January.

Persons: Joe Biden, Biden, Mark Hamrick Organizations: Finance Locations: California

☆ As late, missed payments rise, credit card borrowers face 'consequences' for falling behind, CFPB says
▼ + stars: | 2024-03-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowThe consequences of missed credit card paymentsThe CFPB found that late fees are often layered on top of other punitive measures credit card companies impose on consumers who miss payments, including negative credit reporting, which can hurt their credit rating. "When consumers don't make required payments, they can face a long list of consequences. More consumers are falling behindCollectively, consumers are having a harder time managing debt amid high interest rates and higher prices. Not only are more cardholders carrying debt from month to month but more are also falling behind on payments, recent reports also show. Credit card delinquency rates surged in 2023, the Federal Reserve Bank of New York found.

Persons: Rohit Chopra, — Organizations: Consumer Financial Protection Bureau, Federal Reserve Bank of New, New York Fed Locations: Federal Reserve Bank of New York

☆ Credit scores decrease for the first time in a decade as more borrowers fall behind on payments
▼ + stars: | 2024-03-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Average nationwide credit scores bottomed out at 686 during the housing crisis more than a decade ago, when there was a sharp increase in foreclosures. That left many households sitting on a stockpile of cash that enabled some cardholders to keep their credit card balances in check. Generally speaking, the higher your credit score, the better off you are when it comes to getting a loan. Already, the average credit card charges over 20%, a record high, but borrowers with lower credit scores pay even more. "It's difficult in this current economy not to have a good credit score," Kaplan said.

Persons: Ethan Dornhelm, FICO, Dornhelm, Ann Kaplan, Kaplan Organizations: Consumers, Finance Locations: Toronto, Canada

☆ How women can step out of their comfort zone to build wealth: 'Be intentional' managing fear, expert says
▼ + stars: | 2024-03-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

"We can't ditch our fears, but we can be intentional about managing our fear," Sokunbi said during CNBC's Women & Wealth event on Tuesday. Most women are worried about moneyFor women, "financial stress is pretty consistent across all age groups and income," said Lorna Kapusta, head of women and engagement at Fidelity. However, financial stress levels drastically decrease with each additional month of emergency savings set aside, according to Fidelity. Roughly 81% of women with no emergency savings felt a fair amount or a lot of stress. Once women have three months' worth of emergency savings, only 26% report high stress levels, Fidelity found.

Persons: Bola, Bola Sokunbi, Prosper, —, Sokunbi, Lorna Kapusta, Kapusta Organizations: Clever Girl Finance, CNBC's, Fidelity Investments, Fidelity Locations: Bola Sokunbi, Northwestern

☆ Harvard is back on top as college hopefuls' ultimate 'dream' school, despite recent turmoil
▼ + stars: | 2024-03-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

People walk through the gate on Harvard Yard at the Harvard University campus in Cambridge, Massachusetts, on June 29, 2023. Scott Eisen | Getty ImagesAnd just like that, Harvard University has regained its position as the ultimate "dream" school among college applicants. The Princeton Review's 2024 College Hopes and Worries Survey polled nearly 8,000 college applicants between Jan. 15 and Feb. 20, just weeks after Harvard President Claudine Gay resigned amid allegations of plagiarism and controversy over her congressional testimony about antisemitism on campus. Harvard saw fewer early applicantsThis year's early admissions cycle, in the immediate aftermath of the Oct. 7 attack on Israel by Palestinian militant group Hamas, reflected some of the recent turmoil. There were 7,921 early applicants to the Class of 2028, down from 9,553 last year, the Harvard Crimson reported.

Persons: Scott Eisen, It's, Hafeez Lakhani, Claudine Gay, Robert Franek, Lakhani, Christopher Rim Organizations: Harvard, Harvard University, Ivy League, Massachusetts Institute of Technology, Princeton, Hamas, —, Harvard Crimson, Christopher, Command, Supreme Locations: Cambridge , Massachusetts, New York, Israel, Palestinian

Customers look at appliances for sale at a Best Buy store in Miami, Florida, Oct. 8, 2021. However, the machine broke for the same reason again a few months later, and then again shortly after that. After the mechanic's third visit, Rathner said he told her, "You need to stop calling me and just buy a new dryer. watch nowHomeowners spend about 34% more on appliances than they did 15 years ago, "above and beyond inflation," Tomalak said. "Homeowners are purchasing appliances with more bells and whistles, but which become obsolete sooner and have more aspects to repair versus appliances years ago," he said.

Persons: Joe Raedle, Sara Rathner didn't, Rathner, Todd Tomalak, Tomalak, Brian Laung Aoaeh, Aoaeh Organizations: Getty, Finance, Zonda Media, Refashiond Ventures Locations: Miami , Florida, Richmond , Virginia, New York

☆ 93% of women are stressed about money. Building a cash reserve can help, experts say
▼ + stars: | 2024-03-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Largely as a result of the wealth gap, women tend to be more financially vulnerable than their male counterparts. Regardless of their household income, 93% of women feel stress when it comes to money, according to a new report by Fidelity Investments. In fact, financial stress levels drastically decrease with each additional month of emergency savings set aside, according to Fidelity. Roughly 81% of women with no emergency savings felt a fair amount or a lot of stress. Once women have three months' worth of emergency savings, only 26% report high stress levels, Fidelity found.

Persons: Stacy Francis, Francis, Paulette Perhach, Perhach, Lorna Kapusta Organizations: Francis Financial, Fidelity Investments, CNBC, Fidelity Locations: New York

☆ Issues with new FAFSA may cause 'shocking' decline in the number of students getting college aid, expert says
▼ + stars: | 2024-02-29 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Under the new aid formula, an additional 2.1 million students should be eligible for the maximum Pell Grant, according to the Department of Education. "The goal of FAFSA simplification was to increase the number of lower-income students applying. The new FAFSA was meant to improve college accessIn ordinary years, high school graduates miss out on billions in federal grants because they don't fill out the FAFSA. In New York alone, students left $226 million in Pell grants on the table in 2023. Jacobson is sponsoring a bill requiring high school seniors to complete the FAFSA.

Persons: Pell Grant, Kantrowitz, Jonathan Jacobson, Jacobson Organizations: Department of Education, York, Universal, National College, Research Locations: New York, Pell, Louisiana

☆ A growing number of colleges are rolling out 'no-loan' policies. ‘They are giving them out like candy,’ Yale professor says
▼ + stars: | 2024-02-28 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

Roughly two dozen schools have introduced "no-loan" policies, which means they are eliminating student loans altogether from their financial aid packages. "They are giving them out like candy now," said Menaka Hampole, an assistant professor of finance at Yale School of Management, of the growing number of no-loan policies. "Post-Covid more schools are rolling out no-loan policies mostly on the back of Princeton, which had the money in its endowment to do something," Hampole said. Even if a school has a no-loan policy, that also does not prevent a student or family from borrowing money to help cover their contribution. "No loan doesn't mean free," said Robert Franek, The Princeton Review's editor in chief and author of "The Best 389 Colleges."

Persons: Menaka Hampole, Hampole, Colin Hatton, Hatton, Robert Franek, Nicole Hurd, Hurd, Biden, Terra Gallo, Gallo, Colby, Jackie Hardwick, Hardwick, Randi Maloney, Franek Organizations: Yale School of Management, Princeton, Nationwide, Lafayette College, Finance, Colby College, Colby, The Princeton Locations: Easton , Pennsylvania, Lafayette, Waterville , Maine, Jacksonville , Florida

☆ 401(k) millionaire ranks grew 11.5% in 2023. They are 'poster children for staying the course,’ expert says
▼ + stars: | 2024-02-27 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

In this article FIS Follow your favorite stocks CREATE FREE ACCOUNTwatch nowIn a year that defied most economists' expectations, retirement savers reaped the benefits. The average 401(k) balance ended 2023 up 14% from a year earlier to $118,600, Fidelity found. "This past year ended on a high note for retirement savers," said Sharon Brovelli, president of workplace investing at Fidelity Investments. Overall, more than one third of retirement savers increased their retirement savings contributions, Fidelity found. The average 401(k) contribution rate, including employer and employee contributions, now stands at 13.9%, just below Fidelity's suggested savings rate of 15%.

Persons: Sharon Brovelli, Mike Shamrell, Shamrell, Fidelity Organizations: Fidelity Investments, Fidelity, Nasdaq, Dow Jones

☆ Here are some strategies to maximize your financial aid for college
▼ + stars: | 2024-02-22 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Apply for financial aidIn ordinary years, high school graduates miss out on billions in federal grants because they don't apply for financial aid. Because this year's award letters are likely to look a lot different, that also opens the door for families to ask for more college aid. In that case, you may be able to appeal to the college financial aid office, according to Menaka Hampole, assistant professor of finance at the Yale School of Management. Alternatively, if the financial aid packages from other, comparable schools were better, that is also worth bringing to the school's attention in an appeal. "It's very important for students and families to know that financial aid offices tend to be very approachable," Greenberg said.

Persons: haven't, Rick Castellano, Sallie Mae, Greenberg, Menaka Hampole Organizations: U.S . Department of Education, National College, College, Network, Yale School of Management

☆ New FAFSA 'loophole' lets grandparents help pay for college without affecting financial aid eligibility
▼ + stars: | 2024-02-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Under the old FAFSA rules, assets held in grandparent-owned 529 college savings plans were not reported on the form, but distributions from those accounts counted as untaxed student income. Still, the idea of a loophole is not entirely new, according to Kalman Chany, a financial aid consultant and author of The Princeton Review's "Paying for College." "There were always planning strategies that families could use when it came to third-party 529 plans," Chany said. "Even with this change, you still need to look before you leap if grandparents are going to help pay for college," Chany said. The other advantages of 529 plans

Persons: Mark Kantrowitz, Michael Green, Green, Kalman Chany, Chany Organizations: IRS, slims, Apollon Wealth Management, Princeton Locations: Charleston , North Carolina

☆ You can put a price tag on the value of a personal finance education: $100,000
▼ + stars: | 2024-02-17 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Taking a financial education class in high school does pay off. In fact, there is a lifetime benefit of roughly $100,000 per student from completing a one-semester course in personal finance, according to a recent report by consulting firm Tyton Partners and Next Gen Personal Finance, a nonprofit focused on providing financial education to middle and high school students. Much of that financial value comes from learning how to avoid high-interest credit card debt and leveraging better credit scores to secure preferential borrowing rates for key expenses, such as insurance, auto loans and home mortgages, according to Tim Ranzetta, co-founder and CEO of Next Gen. "Students bring these lessons home," Ranzetta said. "When you take that $100,000 in savings and multiply it across families and communities, it's an incredible economic engine."

Persons: Tim Ranzetta, Ranzetta, isn't, Kerri Herrild Organizations: Tyton Partners, Finance, Biden, De Pere High School Locations: Wisconsin

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