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watch nowHigh schools have been buzzing about financial education. They earned an "A" because in those states, high school graduates in the class of 2023 were required to have taken a personal finance course before graduation. Studies show personal finance education can make a significant difference in young adults' financial behaviors, from improving credit scores and lowering loan delinquency rates to reducing payday lending and helping students make better decisions about college loans. A few states still have 'virtually no requirements'Meanwhile, four states — California, Connecticut, Massachusetts and South Dakota — as well as Washington, D.C., got failing grades, receiving "F"s in this report because they have "virtually no requirements" for personal finance education in high school. Still, advocates in "failing" states, such as California, are working to change the laws to ensure students are guaranteed financial education.

Persons: Virginia —, John Pelletier, Champlain, " Pelletier Organizations: Center for Financial, Champlain College, Champlain College's Center, Financial, South Dakota —, D.C Locations: Burlington , Vermont, — Alabama, Iowa , Mississippi , Missouri , Tennessee , Utah, Virginia, U.S, — California , Connecticut , Massachusetts, South Dakota, Washington, California

☆ A 401(k) rollover is 'the single largest transaction' many investors make, expert says. What to know before doing it
▼ + stars: | 2023-12-05 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

That's largely because IRA investors are "retail" investors while 401(k) savers often get access to more favorable "institutional" pricing. "Are you able to pay less by staying in your 401(k) plan?" The bottom line: Compare annual 401(k) fees — like investment "expense ratios" and administrative costs — to those of an IRA. And your current employer may not accept rollovers into your 401(k) from a previous employer's plan. Many 401(k) plans may not allow retirees as much flexibility.

Persons: Ellen Lander, Lander, Carolyn McClanahan, Ted Jenkin, Jenkin, you'd Organizations: Investment, IRA, Renaissance, Planning Partners, CNBC's FA, of America, Company, Workers Locations: IRAs, Jacksonville , Florida, CNBC's, Atlanta

But is there a way to figure out exactly how much you should save each month? Around 20% of your income (after taxes) is a good amount to save each month, according to the 50-30-20 budget and 70-20-10 budget. Over time, you can may find that you can save more each month — going from $20 to $30, and so forth. A person with that income would need to save around $660.50 per month if they are using the 50-30-20 budget rule. The amount each person should save per month will likely depend on their savings goals and current budget, though.

Persons: Patrina Dixon, Dixon, You'll Organizations: Quicken, Fidelity Investments, United States Census Bureau, Consumer Finances Locations: CFEI, U.S

Tom Werner | Digitalvision | Getty ImagesIf you elected not to participate in your company's 401(k) plan, your employer may have other ideas. The concept of 401(k) plan "reenrollment" has been gaining traction. Most companies, about 85%, direct workers' savings into target-date funds if they're automatically enrolled, according to PSCA data. Workers receive a notification from their employer ahead of reenrollments and have the chance to opt out or reduce their contribution. Employers' hope is that inertia will cause workers to stay in the plan rather than opt out.

Persons: Tom Werner, Digitalvision, reenrollments, Sean Deviney, they're Organizations: of America, Workers, Employers Locations: Fort Lauderdale , Florida, reenrollments

"We were an early adopter," said Morgan, who served as past president for Tennessee Jump$tart, an independent affiliate of the national Jump$tart Coalition for Personal Financial Literacy, which championed the policy. While financial literacy has long been a priority, the Covid-19 pandemic sparked a wave of state-level legislation nationwide, said Morgan, who also served on the board of the Tennessee Financial Literacy Commission. "The work is never done," said Bill Parker, director of the Tennessee Financial Literacy Commission, which aims to incorporate personal finance into schools "as early as possible." Bill Parker Director of the Tennessee Financial Literacy CommissionThe Commission has outlined priorities in its five-year strategic plan, which has included thought leadership and state-level advocacy for expanded financial literacy programming. Numerous studies have highlighted the benefits of teaching children financial literacy at an early age.

Persons: chris Ryan, Istock, Jackie Morgan, Morgan, We've, there's, Bill Parker, Parker Organizations: Federal Reserve Bank of Atlanta's, Tennessee, Tennessee Financial Literacy, U.S, Finance, Council for Economic Education, Tennessee Financial Literacy Commission, Tennessee Financial Locations: —, Tennessee, Federal Reserve Bank of Atlanta's Nashville, U.S, , Tennessee

Though aerospace and defense funds understandably haven't done well in this year's faltering market, some individual stocks have posted substantial gains. U.S. support in what's turning out to be a long war in Ukraine will likely push overall contractor spending higher, benefitting aerospace and defense companies. In this era of high-tech warfare, when strategic military engagement is more about digital systems and aerial weapons than boots on the ground, aerospace and defense companies are advantageously positioned. Lucrative products include fighter jets, helicopters, parts for them, avionics products, missile guidance system, drones and anti-drone technology and support services. Curtiss-Wright Corp (CW) Projected five-year annual earnings growth: Data was not available.

Persons: Lockheed Martin, Giuseppe Cacace, Northrup Grumman, Howmet's, Wright, Woodward, Gerald R, Ford Organizations: US Air Force, USAF, Lockheed, Maktoum International Airport, Afp, Getty, U.S, Publicly, General Dynamics, TransDigm, Inc, Parsons Corp, U.S . Department of Defense, Missile Defense Agency, State Department, Department of Homeland Security, Department of Energy, Federal Aviation Administration . Products, Aerospace, Curtiss, Wright Corp, CW, N.C . Products, Woodward Inc, Huntington Ingalls Industries, Coast Guard, Ford, Pentagon Locations: Dubai, Al, Maktoum, Ukraine, Israel, Gaza, what's, Virgina, Washington, Davidson, N.C, Fort Collins , Colorado

☆ 'Women's No. 1 source of stress is money,' expert says. Fixing that requires a step-by-step approach
▼ + stars: | 2023-11-29 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

While men are most commonly say they are "hopeful" when it comes to money, women's number one word for their financial feelings was "stress," according to a 2023 Fidelity Investments survey. 1 source of stress is money," Sallie Krawcheck, CEO of Ellevest, an online investing platform for women, told CNBC in a recent interview. watch nowThere are a reasons why women's financial concerns are more acute. Consequently, women's top goal is to shore up the wealth they're lacking, while their second priority is taking care of their families, she said. A step-by-step approach works bests, according to Stacy Francis, a certified financial planner and president and CEO of Francis Financial in New York.

Persons: Sallie Krawcheck, Krawcheck, Cary Carbonaro, Carbonaro, Stacy Francis, Francis Organizations: Fidelity Investments, CNBC, ACM Wealth, Francis Financial, CNBC's FA Locations: New York, CNBC's

☆ How giving away some winning stocks can help cut taxes and balance your portfolio
▼ + stars: | 2023-11-29 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

But rather than just selling out of those stocks to help dilute those holdings, consider donating a few shares to charity. But giving some away duts the size of the position in a portfolio and skirts capital gains taxes. Those stocks are up more than 200% and 62%, respectively, this year, and are good candidates for some charitable giving, she said. Investors are encouraged to get to know the charitable giving deduction. Investors can also simplify their charitable giving by making direct gifts of appreciated assets to a donor-advised fund.

Persons: you've, Barry Glassman, Glassman, Brenna McLoughlin, Eli Lilly, McLoughlin, you'd, Cash, Tim Steffen, Steffen Organizations: Nasdaq, Nvidia, Tesla, Wealth Services, Wealthstream Advisors, Meta, Apple, Microsoft, Investors, Baird Locations: North Bethesda , Maryland, New York, Milwaukee

☆ 4 ways to maximize your tax break for charitable donations on Giving Tuesday, according to experts
▼ + stars: | 2023-11-28 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Getty ImagesWhen filing your taxes, you claim the larger of the standard deduction or your total itemized deductions. In 2018, the Tax Cuts and Jobs Act nearly doubled the standard deduction, slashing the number of filers who itemized. For 2023, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. Give profitable assetsWhether you're transferring money to a donor-advised fund or giving directly to a charity, experts recommend sending profitable assets, rather than cash. Bunching donationsAnother way to exceed the higher standard deduction is by bunching donations, which is a popular strategy for donor-advised funds, experts say.

Persons: Juan Ros, Michael Maye, Maye, bunching, Mitchell Kraus Organizations: Financial Management, Financial, MJM Financial, Capital Intelligence Associates Locations: Thousand Oaks , California, Gillette , New Jersey, Santa Monica , California

☆ How to make your money work for you over the next decade
▼ + stars: | 2023-11-28 | by ( James Faris | William Edwards | ) www.businessinsider.com time to read: +16 min

"If there is a regime shift, then what has worked could be quite different from what does work," McLennan said. That means the growth stocks that dominated for years may come back to earth in the mid-2020s. He also recommends that investors diversify away from growth stocks that thrived under low rates and instead broaden out to value-oriented names. Valuations explain 80% of a stock's returns over a decade, according to Bank of America. Smead sees energy in stocks in Canada also outperforming in the coming decade, as well as European banks.

Persons: —, Peter Bates, Rowe Price, Damanick Dantes, We're, Dantes, you've, He's, Matt McLennan, McLennan, Kimball Brooker, Morningstar, Nicola Stafford, Stafford, it's, Molina, Bates, Russell, Cole Smead, that's, Phillip Colmar, Colmar, Bob Doll, Doll, Smead, Michael Sheldon, Sheldon, who's, there's, Chris Chen, Chen, Roth Organizations: Service, Business, Global, International, McLennan, First Eagle Global Fund, Eagle Investments, Goldman, Asset Management, Stock, Molina Healthcare, Vanguard Value, Healthcare, Bank of America, Comerica Wealth Management, MRB Partners, Canadian, Crossmark Global Investments, BlackRock, Energy, P Bank ETF, RDM Financial, Social Security, Social, Insight Financial, Trust, IRA Locations: Canada, Colmar, United States, Canadian, Europe, Treasuries

☆ Rates may have hit their peak. How to get the biggest bang out of cash heading into 2024
▼ + stars: | 2023-11-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

"It's important to keep sharing this idea to do something with your cash; these rates won't be here forever." Municipal money market funds Rather than tying up money in CDs or T-bills, Sachs prefers municipal money market funds for investors in the highest income tax brackets. Vanguard's Municipal Money Market Fund (VMSXX) has a 7-day SEC yield of 3.53% and carries an expense ratio of 0.15%. Residents in high-tax locales may also want to consider state-specific muni market funds, which have the additional benefit of providing income that's free of state taxes. For instance, there's the Vanguard California Municipal Money Market Fund (VCTXX) and the Fidelity New York Municipal Money Market Fund (FSNXX) .

Persons: –, Catherine Valega, Sallie Mae, Jeremy Keil, Keil, There's, Charles Sachs, Kaufman, Sachs, Michael Bloom Organizations: Federal, Green Bee, Synchrony, Financial, Keil Financial Partners, Federal Deposit Insurance Corp, FDIC, ., CFP, Money Market Fund, SEC, Residents, Vanguard, Fidelity New York Municipal Money Market Fund Locations: Winchester , Massachusetts, New Berlin , Wisconsin, Miami, Vanguard California

☆ More employers offer a Roth 401(k) — and a Secure 2.0 change may prompt more workers to use it
▼ + stars: | 2023-11-27 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

That share has increased significantly over the past decade: Just 58.2% of employers made a Roth 401(k) available in 2013, PSCA found. Workers pay tax up front on 401(k) contributions, but investment growth and account withdrawals in retirement are tax-free. High earners may also mistakenly think there are income limits to contribute to a Roth 401(k), as there are with a Roth individual retirement account. Those that don't already do so must allow Roth contributions to facilitate this change, or disallow catch-up contributions, according to Principal. When Roth 401(k), IRA savings makes senseRoth 401(k) contributions may not be wise for all workers.

Persons: Roth, PSCA, Hattie Greenan, —, Greenan, Ted Jenkin, Jenkin Organizations: Getty, of America, Finance, Workers, Companies, Employers, CNBC, CNBC's

☆ The wealthy are using this charitable giving strategy. Here's why it may work for you too
▼ + stars: | 2023-11-27 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

The Matthew Perry Foundation is structured as a donor-advised fund, according to its website, a charitable investment fund that experts say offers certain advantages. Donor-advised fund charitable assets represent 20% of those in private foundations, according to National Philanthropic Trust's 2023 annual report. watch nowWhile wealthy donors may have both a foundation and a donor-advised fund, many are moving to just donor-advised funds, according to Douglas. "With a donor-advised fund, what it does is more streamlined," O'Neill said. Advantages of using a donor-advised fundFor all donors, regardless of income, there may be benefits to using a donor-advised fund.

Persons: Matthew Perry, Phillip Faraone, Matthew Perry's, Perry, Charlie Douglas, Matthew Perry Foundation's, Douglas, Brandon O'Neill, O'Neill Organizations: GQ, The West, Matthew Perry Foundation, HH, Investments, National Philanthropic Trust, Philanthropic Trust, Fidelity Charitable Locations: West Hollywood , California, Atlanta

☆ More Americans can buy investments earmarked for the rich. Why doing so may be risky, say experts
▼ + stars: | 2023-11-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

Anyone can generally buy the stock of public companies on a stock exchange, or buy pools of stocks or bonds via publicly available mutual funds and exchange-traded funds. By comparison, private investments let people invest in companies that aren't listed on a public exchange. Julio Estela, 41, who lives in Wantagh, New York, made his largest private investment in 2021, in Green Coffee Company. Why private markets are 'two-tiered'Hxyume | E+ | Getty ImagesSome of the largest U.S. investors, such as pension funds, often have some exposure to private investments, proponents say. As with public stock, betting on one private investment instead of pooling risk in a fund of many private companies is an even riskier strategy, experts said.

Persons: Micah Hauptman, Charles Failla, Cassandra Borchers, Thompson Hine, Borchers, it's, Michael Cembalest, Mike Curtis, Shaka Tea, Julio Estela, he's, Curtis, Estela, Hauptman, Failla Organizations: SEC, Consumer Federation of America, Sovereign Financial Group, Sovereign Financial, Morgan, Wealth Management, Shaka, Green Coffee Company, rehabbing, American Investment Council, Pensions, Cambridge Associates Locations: Honolulu , Hawaii, Wantagh , New York, Hawaii

☆ Money tips for single moms: 'It can be very challenging to raise kids on one income,' advisor says
▼ + stars: | 2023-11-22 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

"It can be very challenging to raise kids on one income," said Cathy Curtis, founder and CEO of Curtis Financial Planning in Oakland, California. Experts shared these 3 financial tips for single mothers. After accounting for fixed expenses, Curtis said, "closely monitor and budget for variable and miscellaneous expenses." Single mothers also should make sure they're preparing for their own future, said Jennifer Bush, a certified financial planner with Mainstreet Financial Planning in San Jose, California. To manage fears and be prepared for such a scenario, Curtis said, single mothers should take some additional precautions.

Persons: Christopher Hopefitch, Cathy Curtis, Curtis, That'll, Jennifer Bush, Bush, Emma Johnson, Johnson Organizations: Bank, Getty, National Women's Law, U.S . Department of Agriculture, Curtis Financial, CNBC FA, Fidelity Investments Locations: Oakland , California, overspending, San Jose , California

☆ Millennials have a gusto for bond ETFs — and that may be bad in the long run
▼ + stars: | 2023-11-22 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Eva-katalin | E+ | Getty ImagesMillennials are holding and buying bond exchange-traded funds with more gusto than older investors — and that's likely not an ideal strategy, experts said. That's a higher allocation than Generation X and baby boomers, who had respective allocations of 37% and 31%. Millennials investing for the long term can afford to — and generally should — take more risk than older investors by allocating relatively heavily to stocks. That's because stocks typically outperform bonds over decades, said Jenkin, a member of CNBC's Advisor Council. "Millennials in their 30s probably shouldn't have 45% of their allocation in bonds," Jenkin said.

Persons: Eva, katalin, Charles Schwab, X, Schwab, — doesn't, Ted Jenkin, Jenkin Organizations: Millennial Locations: Atlanta

☆ HSAs are a 'powerful, yet underutilized' financial tool, says CFP—how to take advantage during open enrollment
▼ + stars: | 2023-11-20 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

But as you're considering your options, financial advisors would like to make sure that you're taking one crucial financial tool into account. If your employer offers a high-deductible health plan (those with deductibles of at least $1,500 for individuals or $3,000 for families), those who enroll in it gain access to a health savings account. Some 81% of accountholders keep HSA money in cash, according to a recent survey from the Plan Sponsor Council of America. "This feature positions HSAs not just as a tool for current medical expenses, but as a strategic component in long-term financial planning." Under this convention, you'd pay for medical expenses out of pocket in the short-term in order to reap the benefits of long-term compounding growth.

Persons: Sean Lovison, HSAs, whatever's, Michelle Fait, you've Organizations: of America, Investments, Fidelity, Satori Financial Locations: Moorestown , New Jersey, Seattle , Washington

Investors like dividend stocks for their yields, but the equities' returns have been pretty dismal so far this year. "That's what is putting pressure on these [dividend] stocks, or maybe just keeping them from lifting." IPDP YTD line Dividend Performers ETF (IPDP) performance year to date When it comes to specific stocks, Gilreath likes two under-the-radar plays: Brady Corporation and ABM Industries . Brady, which manufacturers identification and health-care products, has a 1.7% dividend yield. Diversification in light of recession risk When it comes to dividends, investors should look for quality rather than quantity.

Persons: That's, Bond, Andrew Graham, Dave Sheaff Gilreath, Gilreath, Morningstar . Brady, Capital's Graham, Graham, Dow, Laura Mattia, Morningstar, George Gagliardi, You'd, I'm Organizations: Investment, Jackson, Capital, Federal Reserve, Brady Corporation, ABM Industries, Dow Inc, Dow, LyondellBasell, Shell, Coromandel Wealth Management, U.S Locations: San Francisco, Indianapolis, Sarasota , Florida, Lexington , Massachusetts

☆ Watch for this 'phantom tax' before taking Affordable Care Act insurance subsidies, advisor says
▼ + stars: | 2023-11-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

d3sign | Moment | Getty ImagesAs millions of Americans compare health plans on the Affordable Care Act insurance marketplaces, experts say it's critical to run projections and rethink popular tax moves before enrolling in subsidies. The average enrollee is paying premiums of $124 per month after the subsidies, which were boosted through 2025 via the Inflation Reduction Act. If your actual income exceeds your estimates, you might be required to repay some or all of the subsidy. "If your actual income exceeds your estimates, you might be required to repay some or all of the subsidy." The subsidy eligibility calculation also considers your location, family size and whether you spouse has available coverage.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo, Lucas, Sean Lovison Organizations: Affordable, American, Center of Budget, Security, Philadelphia Locations: Orlando , Florida

☆ Here's how much you can make in 2024 and still pay 0% capital gains taxes
▼ + stars: | 2023-11-14 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The IRS on Thursday released dozens of inflation adjustments for 2024, including higher income tax brackets, increased standard deductions and boosted income thresholds for capital gains. For 2024, there are higher thresholds for the 0%, 15% and 20% long-term capital gains brackets, applying to assets owned for more than one year. How to calculate your capital gains tax bracketYou're more likely to fall into the 0% capital gains bracket in 2024 with higher standard deductions and capital gains income thresholds. "It's really quite a bit of capital gains you can receive without paying any tax," said certified public accountant Tom Wheelwright, CEO of WealthAbility. Who may fall into the 0% capital gains bracket

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo, Lucas, Tom Wheelwright Organizations: IRS Locations: Orlando , Florida

☆ Higher Contribution Limits Are Coming for 401(k) Retirement Plans
▼ + stars: | 2023-11-10 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Even if you can contribute the maximum amount, that doesn’t necessarily mean you should, Mr. McBrien said. You may have other goals to save for besides retirement, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute. Under the Secure 2.0 Act, a law passed late last year, savers earning $145,000 or more who make 401(k) catch-up contributions would have had to make them as pretax Roth contributions starting in 2024. Can I change the amount of my 401(k) contributions after open enrollment? But while health insurance choices are typically fixed for the full year unless you have a big change in your life, many employers let you tweak your retirement contributions at any time.

Persons: don’t, Kyle McBrien, McBrien, ”, Craig Copeland, “, Roth, pretax Roth Organizations: Research

☆ 31% of millionaires say they're part of the middle class, survey finds. 'People feel squeezed,' advisor explains
▼ + stars: | 2023-11-10 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Roughly 60% of investors with $1 million or more of investable assets said they are more likely upper middle class, according to a recent Ameriprise Financial survey of more than 3,000 adults. "Many people feel squeezed between higher prices and lower asset prices," said Kim Maez, a certified financial planner and private wealth advisor at Ameriprise. Some even said they feel poor, according to a separate survey conducted by Bloomberg. Of those making more than $175,000 a year, or roughly the top 10% of tax filers, one-quarter said they were either "very poor," "poor" or "getting by but things are tight." Despite their high-net worth, just 44% all millionaires felt "very comfortable," another report by Edelman Financial Engines found.

Persons: Kim Maez, it's, — Organizations: Finance, Bloomberg, Edelman Financial Locations: Ameriprise

You shouldn't expect high-yield savings account interest rates to drop anytime soon. High-yield savings accounts are a great choiceDespite the fact that APYs will likely fall eventually, high-yield savings accounts can still be a really good place to put your money. "By its nature a high-yield savings account will still provide more interest than an ordinary savings account at a major bank," Herzog says. In fact, now may be the time to take advantage and put funds into a high-yield savings account if you haven't already. "If we see more talk of interest rates slowly declining, I think there will be more interest in longer-term securities or options to lock in those interest rates," Valega says.

Persons: —, you'll, we're, Andrew Herzog, Herzog, Catherine Valega, It's, Valega, it's Organizations: Service, Federal Reserve, Fed, Green Bee

☆ Closed-end funds can generate income – and they’re cheap. Here’s how they might fit in your portfolio
▼ + stars: | 2023-11-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Closed-end funds offer a fixed number of shares, but they also trade publicly on exchanges. Right now, a confluence of events is resulting in some sharp discounts for closed-end funds, especially for those that hold bonds. Investors in closed-end funds have shed some of those holdings and that's resulting in sharper discounts to net asset value. Closed-end fund plays Financial advisors have called out closed-end funds holding municipal bonds as a way to add duration on the cheap. Closed-end funds offer other ways to pick up income: Paul Winter, CFP and portfolio manager at Five Seasons Financial Planning, likes funds that use buy-write strategies.

Persons: Dave Lamb, Lamb, Jeffrey Gundlach, Robert Finley, Paul Winter, BOE, Nuveen's Lamb Organizations: Treasury, Western Asset, Muni Fund, Asset Management, Five, Virtus, Strategy, BlackRock Locations: New York, York

Your debt-to-income ratio is the percentage of your monthly income that goes toward debt payments. Besides looking at your credit score, payment history, assets, and cash flow, they also consider your debt-to-income ratio. Debt-to-income ratio (DTI) is the percentage of your monthly gross income that goes toward paying existing debts. You can have a DTI ratio as high as 43% and still get approved for a mortgage, though Rose says lenders would ideally like to see a total DTI ratio of 36% or less with 28% going toward housing expenses (front-end DTI). Debt-to-income ratio frequently asked questionsIs 50% a good debt-to-income ratio?

Persons: Scott Bridges, Rose, Jeff Rose

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