By Katie Kelton, CCC, Bankrate.com

When it comes to back-to-school shopping, some of us might think fondly of new backpacks and the scent of fresh pencils. But Bankrate’s 2025 Back-to-School Shopping Survey shows others might simply see dollar signs.

Stubborn inflation continues to change how nearly 1 in 3 back-to-school shoppers (30%) shop, but that percentage has trended down in recent years, perhaps indicating Americans have become more accustomed to paying higher prices.

Ronda Sunderhaus, Bankrate senior account manager in Charlotte, North Carolina, has lengthy back-to-school shopping lists for her three kids. In addition to school supplies, they buy several new outfits, backpacks and lunch boxes — “Those never seem to last when you pack lunch every day of the week,” she says.

That’s why her family looks for deals and compares prices together.

“I involve (my kids) in price comparison and decision-making when it comes to clothes, shoes and backpacks, too,” she says.

One category they can skimp on is electronics. “Because my kids are younger, the only ‘technology’ needs they have are generally headphones,” she explains. “I usually opt for a low-cost pair, since kids are prone to losing or breaking things, and replace annually.”

Almost half of shoppers (49%) plan to employ money-saving strategies this fall, from finding cheaper brands to budgeting to buying less.

“The cumulative effects of higher prices and high interest rates are still weighing on many households,” says Ted Rossman, Bankrate senior industry analyst. “Tariff concerns are also significantly impacting consumer sentiment.”

Bankrate’s key insights on back-to-school shopping

• Today’s prices have nearly 1 in 3 back-to-school shoppers rethinking how they shop. Thirty percent of shoppers say they’re changing how they shop due to inflation. That’s down from 41% in 2022 and 32% in 2024, perhaps indicating that Americans are adjusting to higher price tags.
• Compared to 2022, a smaller percentage of back-to-school shoppers feel financially strained for the upcoming school year. Twenty percent of shoppers (down from 31% in 2022) say they’ll feel a strain on their budget, and another 11% (down from 26% in 2022) feel pressured to spend more than they’re comfortable with.
• Half of back-to-school shoppers are using money-saving strategies this season. Forty-nine percent of shoppers have taken or plan to take action — buy cheaper brands, look for deals, budget or buy fewer supplies — for the upcoming school year.

Inflation continues to plague back-to-school shoppers, but less so than in years past

Nearly 1 in 3 back-to-school shoppers (30%) say inflation is changing how they shop. That’s down from 32% in 2024 and 41% in 2022, during peak inflation.

Inflation is currently at 2.4%, well below the 9% peak in June 2022, but prices are still 23.7% higher than they were before the pandemic. However, our polling shows this is becoming less of an issue for shoppers. While the Bureau of Labor Statistics doesn’t specifically track the price of school supplies, we can look at the prices of a few similar categories this year (as of May 2025) versus last year.

Stationery, stationery supplies and gift wrap are 4.7% more expensive than last year.

Boys’ apparel is 2.1% more expensive, but girls’ apparel is 1.3% cheaper.

Computers, peripherals and smart home assistance are 3.5% cheaper. But computer software and accessories are 6.1% more expensive.

Educational books and supplies are 9.4% more expensive.

One in 5 shoppers (20%) say these costs will or are straining their budgets, which is down from 31% in 2022. And around 1 in 10 shoppers (11%) feel pressured to spend more than they’re comfortable with, which is down from 26% in 2022.

• More millennials and Gen Zers are back-to-school shopping than older generations Overall, more than 1 in 3 U.S. adults (36%) are back-to-school shopping this year — for themselves or for a child. That includes nearly half of millennials (ages 29-44; 49%) and Gen Zers (ages 18-28; 44%). Only 1 in 3 Gen Xers (ages 45-60; 33%) and around 1 in 5 boomers (ages 61-79; 21%) are back-to-school shopping.
• Most back-to-school shoppers won’t take on debt this season Six percent of shoppers plan to take on debt for back-to-school shopping this year. “We do not worry about the start of school debt, but know many families do,” Sunderhaus says.

Nearly half of Americans (46%) have credit card debt, according to Bankrate’s 2025 Credit Card Debt Report. But nearly half of those debtors (45%) say it’s because of emergency expenses, like car repairs or medical bills. Armed with a budget and money-saving strategies, it’s possible to avoid debt this back-to-school season.

Nearly half of shoppers plan to use money-saving methods

Alene Laney, a personal finance writer in Provo, Utah, and mom of five, finds creative ways to save on back-to-school shopping. Their local public schools provide supplies, but her family is still on the hook for new school clothes, technology, backpacks and so on.

“I try to keep costs as low as possible, and the extra expenses come from a monthly budget category for essential home items,” Laney says.

She’s among nearly half of back-to-school shoppers (49%) who are employing one or more of these money-saving strategies in 2025.

1 in 5 will buy cheaper brands

Twenty percent of back-to-school shoppers say they bought or will buy cheaper brands than usual, down from 35% in 2022.

Try opting for generic versions of your kids’ favorite brands or comparing prices between stores to trim down your budget. “I buy cheaper brands for the things that don’t matter (paper, binders, scissors),” Sunderhaus says. “I also price compare between in-store deals (Target, Walmart) and Amazon online. I usually find that highlighters, expo markers, and ironically, glue sticks in bulk and then divided among my kids, are cheaper via Amazon.”

1 in 5 will look for deals

Twenty percent also have or plan to find more deals and coupons than in the past. But that’s down from 47% in 2022.

With five kids, it’s important for Laney and her kids to buy things that will last without breaking the bank. “I don’t go for the cheapest brands — I try to get the highest quality for the lowest price,” she explains. “For that, I’m a big Costco fan. I also shop all the discount stores like TJ Maxx, Ross, Marshall’s and Burlington Coat Factory.”

Nearly 1 in 5 will budget for back-to-school

Eighteen percent already did or plan to set money aside and/or budget for back-to-school shopping, which is down from 33% in 2022.

Budgeting prevents impulse buying, which is a weakness for many Americans. And it helps you identify other categories where you might be able to spend less this season, so there’s enough money to go around. You could also start saving up for back-to-school shopping a couple of months in advance.

About 1 in 6 will buy fewer school supplies

Sixteen percent are buying fewer school supplies than in previous years due to the cost, compared to 36% in 2022.

“Consider asking your child’s teacher what’s essential on day one versus what can wait until later in the year,” Rossman says. Your kids may not need everything on the list right away. They might also be able to use last year’s backpack, folders, pens and pencils and more.

5 ways to save money this back-to-school season

Once summer camps are over and schools start sending emails again, here are a few lessons to help you shop affordably for back-to-school.

• Set a budget. With a monthly budget that fluctuates by season, you can plan ahead for back-to-school spending by pulling money from other everyday categories. For example, if you budget $500 for school supplies, you might be able to cut $200 from your family’s dining out budget, $200 from entertainment and another $100 by skipping pricey snacks and only buying in bulk that month.
• Make a shopping list. With a list in hand — that you actually stick to — you won’t get sucked into buying more than you need or what your kids throw in the cart. Base the list on your budget and recommendations from the school, but also look for ways to reuse supplies from last year.
• Stack discounts. Try “combining a rewards credit card with store promotions, online shopping portals and/or card-linked offers,” Rossman advises. Those small savings can add up for a big shopping list.
• Include your kids in the process. Back-to-school shopping is a way to teach your kids about budgeting while minimizing bickering over what to buy. “I make my elementary kids responsible for holding onto their list in the store and marking off what we have as we go,” Sunderhaus says. “We also talk about the brands and prices of the items they are picking out.” When her 6-year-old wanted a video game-themed pencil box, he chose to compromise for a more affordable lunch box.
• Shop secondhand. Thrifting clothes and supplies, when possible, can help you get lower prices while helping the environment. Laney and her kids often shop secondhand and re-wear items. “I’m always surprised at the high quality of clothes I can get secondhand,” she says. “We’re happy to wear hand-me-downs or yard sale treasures.”

Methodology: Bankrate commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,616 adults, of which 914 have or will do back-to-school shopping this year. Fieldwork was undertaken between June 2-4, 2025. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

By Carson Hartzog, The Minnesota Star Tribune

Color-coded folders and notebooks. A fresh stash of pens and pencils. A new outfit.

Millions of American students from preschool through college, and their (often) bankrolling parents, back-to-school shop ahead of each fall. But as prices rise, technology evolves and new products hit the shelves, families are seeking ways to keep checking off the school supply list affordably.

“When I was young, I had $50 to go to the grocery store. I go now, and that’s, like, three or four items,” said Matt Marsh, Minneapolis managing partner at Deloitte. “Everything costs more. So families are getting squeezed a bit, and it’s creating a level of anxiety.”

According to PwC’s inaugural back-to-school survey, nearly 3 in 4 parents said they’ll spend the same or more than they did last year on school supplies, even with higher prices and economic volatility.

“There’s still this underlying element of consumer confidence,” said Kelly Pedersen, a partner at PwC. “Even though we hear a lot of uncertainty in the market, people still need to shop for back-to-school.”

Plan and budget

Before shopping, take inventory of last year’s supplies. About a third of parents plan to reuse items, according to PwC.

Budgeting, paired with a specific shopping list, can prevent impulse buying.

In Minneapolis, parents Deloitte surveyed expected to spend $682 per child this year. That’s 20% more than the national average.

Niki Kroll of Minneapolis typically starts her back-to-school shopping in July and has already noticed higher prices. Various name-brand notebooks, folders and backpacks seem to be more expensive than previous years. But she has had success finding pencils, glue sticks and other basics on sale.

Those surveyed planned to spend less on clothing and more on school supplies. They also plan to spend more of their budget on tech than last year, though experts expect the total of those tech purchases to stay flat in comparison to last year’s $520 per family.

Assess need

As kids progress in school, more advanced classes might require new tech purchases, like a different calculator model, nearly each year. Delaying that purchase if possible or downgrading it — such as buying an older or used version — can free up room for more necessities like binders, scissors and pencil cases.

“Consider asking your child’s teacher what’s essential on day one vs. what can wait until later in the year,” wrote Ted Rossman, Bankrate senior industry analyst, in an analyst note.

Shop now

More than a third of parents PwC surveyed said they’re starting earlier this year to snag better prices and beat the rush.

“There’s this thought that the better deals are out there earlier before the heart of back-to-school in August,” Pedersen said.

Deloitte’s survey found more than two-thirds of Minneapolis parents plan to finish most of their school shopping by the end of July. They were able to cash in on recent sales like Target’s Circle Week and Amazon’s Prime Day. But several retailers are hosting back-to-school promotions through August.

Target announced Tuesday “Back-to-School-idays” discounts from July 27-Aug. 2. The retailer is maintaining its 2024 prices on key items, and some stores will have personalization stations with embroidery and patches for backpacks, lunchboxes, towels and pillows.

Walmart is offering lower prices than last year on select items, such as highlighters, erasers and notebooks.

Use AI

One in five parents told PwC they plan to use artificial intelligence to find the best deals this season.

“The biggest change we’ve seen with AI shopping is the agent concept, basically putting in your shopping list and budget to optimize your list and what you buy,” Pedersen said. “It’s really taking all of the searching work out of having to do back-to-school shopping.”

AI tools like app and website ChatGPT allow users to paste in a list of school supplies and make requests, like “find these items for the cheapest prices online or in-store within 20 miles of Minneapolis.” Users can also ask to search specific stores and keep the total under a certain amount.

Don’t fall for influencers

Deloitte’s data shows parents who use social media are likely to spend 1½ times more on back-to-school than others. Higher education, bigger wages, better access to the internet and more leisure time spent online all play a role.

“Generally, retailers are moving marketing dollars toward influencers, and influencers are creating behaviors that might result in that splurge purchase,” Marsh said.

More than two-thirds of Minneapolis parents said their child’s preferences often steer them to spend more, and 63% are willing to spend a little extra on their child’s first-day outfit compared with 57% nationally.

Make it fun

In Bloomington, Mall of America is hosting giveaways, limited-time promotions and events for back-to-school. Shoppers can scan the Mall of America app once per day for a chance to win a gift card or rewards points. The mall plans to give away more than $10,000 in gift cards between Aug. 11-31.

Deals are also available for the Nickelodeon Universe theme park and Crayola Experience from Aug. 4-Sept. 30.

“For parents and families coming to Mall of America, it’s a one-stop shop,” said Jill Renslow, Mall of America’s chief business development and marketing officer. “It’s a destination where people have that tradition of coming for not only shopping, but to go on some rides or grab lunch.”

Many cities also offer local events for free or low-cost school supplies, just look on city events calendars.

In store vs. online

Younger parents are leading a small resurgence of in-store shopping.

“Every year in our stats, Gen Zs are the ones who are visiting physical stores the most,” Pedersen said. “[They] value in-person experiences, and in some cases, they’re willing to pay a premium price for that.”

Gen Z also reported a higher likelihood of buying in-store. In previous years, younger shoppers more commonly browsed stores to try on or test products but made final purchases online.

Income also plays a role. Families earning under $75,000 are nearly twice as likely to shop only in-store, while higher-income households tend to prefer online shopping.

Be strategic

While inflation has cooled to 2.4%, prices are still up nearly 24% compared with pre-pandemic levels, according to Bankrate.

“It’s not like when the rate goes down, prices go down. They just don’t go up as fast anymore,” Marsh said. “But there’s a lot of economic anxiety about pricing.”

Looking for generic versions of favorite brands or comparing prices across stores can save money. So can thrifting, Pedersen said. About a fifth of shoppers said they’re looking to shop secondhand.

Shoppers can stack discounts by combining a rewards credit card with store promotions or other available offers, which can add up to considerable savings, Rossman wrote in an analyst note.

For Kroll, she enjoys letting her kids pick their most personal items, like lunchboxes. Despite higher prices, those moments are some of her family’s favorite memories.

“We really like shopping for backpacks and things that have more wiggle room for the kids’ own style. The lists have gotten quite specific, so it’s fun when they can pick out their own stuff,” Kroll said. “My son knows immediately what he wants, and my daughter tries on about 10 backpacks while looking in the mirror.”

©2025 The Minnesota Star Tribune. Visit at startribune.com. Distributed by Tribune Content Agency, LLC.

By CATHY BUSSEWITZ

NEW YORK (AP) — After five years of working long nights as a truck driver, Julius Mosley wanted a change. He found driving unfulfilling, and his teenage son needed him to spend more time at home.

So Mosley took a job as a customer service representative at a telecommunications company near his home. The employee benefits included being able to take job-related classes for free. He decided he wanted to study leadership so he could learn about managing teams and helping people become the best versions of themselves.

His company, Spectrum, paid for a 10-week front-line manager certificate program that Mosley went on to complete. Then it covered the tuition cost for a bachelor’s degree in leadership and organization studies that he’s currently pursuing. The company also promoted him to a management position while he took college courses online.

“It’s completely changed the course of my life,” Mosley said about the education benefit, which took care of his tuition up front instead of requiring him to pay and seek later reimbursement. “It’s truly a blessing to be able to do this.”

As higher education costs have grown to heights many U.S. residents find unattainable or illogical, some adults are looking to their employers for help defraying the expense of college and professional credentials. Nearly half of public and private employers have a tuition reimbursement program for employees, according to the Society for Human Resource Management, or SHRM.

Many employers that provide tuition assistance reimburse staff members up to $5,250 per year because that amount is tax-deductible, said Amy Dufrane, CEO of the Human Resource Certification Institute, which offers credentials to HR professionals.

Some companies offer more, including Bank of America, which provides tuition assistance of up to $7,500 annually, and Spectrum which, in addition to its prepaid tuition program, reimburses employees earning master’s degrees or enrolled in classes that fall outside the scope of its prepaid program up to $10,000 per year.

“For companies who are looking to attract Generation Z and Millennials, it’s a great way to bring them in because they’re keenly interested in how companies are investing in them and the benefits that are available,” said Dufrane.

Because many college graduates start jobs after accumulating student loan debt, about 8% of employers also offer help with student loan repayment, according to James Atkinson, vice president of thought leadership at SHRM.

If continuing education feels out of reach financially or seems incompatible with job demands, experts say there are ways to explore the possibility, either by by making the case to your employer or seeking a position at a place that provides education benefits.

A pay-it-forward model

In traditional tuition reimbursement programs, employees lay out thousands of dollars to pay for tuition, books and fees at the start of a semester, and usually must complete the course with a passing grade before a company would kick in its contribution.

That means employees would often wait four to six months before being reimbursed, which only works for more affluent workers, said Paul Marchand, chief human resources officer at Spectrum.

“The person that can afford to put it on their credit card and sit with $3- or $4- or $5,000 of expenses due back to them and not be concerned about that cost, that is not our average worker,” Marchand said. “Our average worker is making $25, $28, $30 bucks an hour, maybe having a second job, maybe a single parent with kids, … and they’re important workers for us, and we want to help develop them and grow their careers.”

Spectrum launched a program that lets employees sign up for an array of certificates or college courses while paying nothing themselves. The eligible courses and where to take them came from Guild, a Denver company that works with employers on workforce development and tuition assistance.

Walmart offers a similar benefit to its front-line associates, who can enroll in college or certain classes without ever seeing an invoice, according to company spokesperson Jimmy Carter. The benefit also extends to family members of the employees, he said.

Help with loan repayment

As recent college graduates have struggled with debts from college, some employers have added student loan repayment programs as well as tuition assistance.

Morgan Woods, 29, a training analyst at semiconductor manufacturer GlobalFoundries, graduated from college with a $20,000 debt load. Her employer is paying $125 per month toward her student loans, a sum that will increase over time.

Woods now expects to pay off her loans four years earlier than she anticipated doing on her own and hopes it will improve her options as she explores buying a house.

“The fact that I’m now ahead of where I thought I would be a little over a year ago is very nice to see,” she said.

Making the case

Not all employers offer education benefits, and when they do, they’re not always widely publicized. To find out if your employer offers such benefits, ask a manager or a human resources representative.

Show how a course or training directly relates to your role and how it would help you do your job more effectively, Dufrane advised. Even if there’s no formal tuition reimbursement program, your employer might have a training or professional development budget.

“If you’re taking on a stretch role or entering a new industry, you can advocate for training as part of your offer. Say something like, ‘I’d like to take a course to help me get up to speed in this area.’ In my experience, that shows initiative and employers often respect it,” Dufrane said.

You can also approach your boss and say, “I want to move up and I want to invest in myself. What recommendations do you have for me?” Dufrane added.

Finding the time

Fitting in classes, study sessions and paper writing can be daunting when holding down a full-time job, but there are ways to make it work.

Rene Sotolongo, a cybersecurity analyst at the Human Resource Certification Institute, earned a master’s degree in cybersecurity using tuition reimbursement benefits from his employer. To manage his time, he switched to working Monday through Thursday, studied on weeknights and dedicated Friday through Sunday to other schoolwork.

“Without the tuition reimbursement or the organization’s flexibility, there’s no way that I would be able to” earn advanced degrees, said Sotolongo, who is now pursuing a PhD with assistance from HRCI. “It’s rewarding in every aspect.”

Providing flexibility shows commitment to employees, Dufrane said. “You’ve got to be flexible around learning because people have parents they’re taking care of and kids they’re taking care of, and going home at night isn’t always the best time to be writing a paper,” she said.

Fitting in schoolwork while also meeting the needs of a son, a fiancee, a full-time job and a puppy has been challenging for Mosley, but it also provided a way to model studious behavior for his son.

“Instead of me just telling him he needs to do his, now he’s seeing me doing schoolwork, so that actually helped out with him wanting to do his work more,” Mosley said. “We actually take time to sit down together some days to work on our homework, so it’s been a life-changing situation.”

Share your stories and questions about workplace wellness at cbussewitz@ap.org. Follow AP’s Be Well coverage, focusing on wellness, fitness, diet and mental health at https://apnews.com/hub/be-well

Margaret Giles, Morningstar

Many of the best investing moves are made on autopilot. Just look at the track record of automatic payroll deductions and savings increases.

Other investing decisions, like a transition into retirement, require a more hands-on approach.

Christine Benz, Morningstar’s director of personal finance and retirement planning, recommends taking a preemptive approach as you get closer to retirement. The key is to visualize what you want your retirement to look like while you have enough time to make any adjustments you might need to get you there.

Here are five steps to take now if you plan to retire in the next five years:

1. Consider the role of work in retirement

Decide whether some kind of work is realistically part of your retirement plan. That income stream can make your retirement spending simpler, but it shouldn’t be the linchpin of your whole plan. That’s because you may not be able to work even if you want to.

2. Track your expenses

Understand what you’re actually spending today and see whether your spending will change over the next few years and into retirement. Getting a grasp of your future spending needs will help you determine whether your plan is on track.

3. Check up on Social Security

For most people, Social Security is a key source of income in retirement. Create an account on the Social Security website and make sure they have your correct information. This will let you model out different Social Security claiming dates using your own information.

4. Assess your current retirement savings

Look at your spending and subtract Social Security to get a sense of what you’ll need from your portfolio. If your spending doesn’t align with roughly 4% or less of your portfolio, you may need to make some changes. Consider saving more, investing differently, putting off your planned retirement date, or adjusting how much you plan to spend in retirement.

5. Derisk your portfolio

As you get within 10 years of retirement, you’ll want to make sure that your asset allocation can help protect your retirement plan from getting derailed by market volatility. If equity losses happen early on in your retirement, you can spend from your safer assets and wait until the market recovers to pull from your stock portfolio.

By thinking about retirement preemptively, you’ll have a better sense of when you want to retire and what you want it to be like. Plus, you can make any course corrections needed to make it happen.

This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance

Margaret Giles is a senior editor of content development for Morningstar.

By Tommy Tindall, NerdWallet

My wife and I hate our washer and dryer. Both appliances still operate, but the washer leaves behind what looks like little specs of mildew every load. The dryer takes three times on high to get a load dry.

All the trade war talk has us wondering if we should nab a deal now while it doesn’t seem so bad.

A lot of people are worried about tariffs, according to the Consumer Confidence Board’s June Consumer Confidence Index. The report said purchasing plans for appliances were slightly up in June, car-buying plans were steady and electronic-buying plans were down.

The affluent — and I’m not saying that’s me — may be leading the charge.

Back in May, 26% of consumers making $125,000 or more indicated that they’d made purchases ahead of potential tariffs. Expected price rises haven’t fully landed, but economists say they are coming.

“Consumers are seeing their way through the uncertainty with trade policies,” National Retail Federation Chief Economist Jack Kleinhenz said in a June prepared statement. “But I expect the inflation associated with tariffs to be felt later this year.”

If you want to get ahead of potential rising prices, here are a few things to look at now before they get more expensive later.

Major appliances, like washers and refrigerators

Turns out the tariff on imported steel and aluminum will specifically hit household appliances. As of June 23, the 50% tariff on steel extends to “steel derivative products,” which include fridges, freezers, washers, dryers, dishwashers, ovens and even garbage disposals.

If you’ve been thinking about upgrading an appliance, the time might be right to get something that was made before prices get higher, and while summer sales are still going on.

As for our purchase plan, we’re going to get a new washer and dryer soon because mildew is gross and economists foresee prices rising. Our local appliance store has the LG set we want in stock and on sale now.

Cars (especially EVs and luxury imports)

It was a crappy time to buy a car the past few years. Prices of both new and used cars ballooned after the pandemic. Then, the situation seemed to get better.

Case and point: I bought a brand new Honda Odyssey at several grand under sticker in November. I was shocked the dealer was willing to let me haggle that day. (Adding free all-weather mats was a non-starter though.) I also can’t believe how much I love driving a minivan (#babyonboard).

Now, a 25% tariff on imported passenger vehicles and auto parts could usher in a new era of crappiness in car buying, but there is time to get ahead of it.

“Experts expect tariffs to push car prices higher. We’ve seen a few manufacturers increase prices, but overall there haven’t been big increases. That’s expected to change though, as pre-tariff vehicles disappear,” says Shannon Bradley, NerdWallet’s authority on autos.

What make and model of car are you after, and where is it made?

Consultancy firm Anderson Economic Group has analyzed vehicles with the lowest and highest potential tariff impact to project cost increases to consumers.

Cars like the Toyota Camry Hybrid, Ford Explorer and my beloved Honda Odyssey are assembled in the U.S. and expected to be less impacted by tariffs than more luxurious foreign-made models. Prices of the cars mentioned are expected to increase by $2,000 to $3,000.

Another incentive to get a new ride has to do with President Trump’s “big, beautiful bill.”

The legislation adds a tax deduction for car loan interest, where taxpayers can write off up to $10,000 a year in interest paid on new cars assembled in the U.S. and purchased after Dec. 31, 2024.

If you’re on the other end of the spectrum, looking for something like a Mercedes-Benz G-Wagon, Land Rover, Range Rover or imported BMW model, there’s no tax deduction, and the tariff impact is expected to be greater. Like $10,000 to $12,000 greater, according to the Anderson Economic Group analysis.

If you want an electric vehicle, the clock is ticking.

“EV tax credits will be eliminated beginning with EVs purchased or leased after Sept. 30, 2025. If you want an EV, buy one before then,” says Bradley.

The new Tesla Model 3 and Ford F-150 Lightning are examples of EV models eligible for the $7,500 EV tax credit for now. Used EVs get a tax credit of $4,000, but that will also end Sept. 30 under the planned tax changes.

iPhones and Androids

The tariffs situation changes almost daily.

Right now, there is a baseline 10% across-the-board tariff on all imports. There’s also a 30% tariff on Chinese imports in effect, with the potentially higher reciprocal tariffs on China and other countries on pause until Aug. 1.

Something you may not know is smartphones (along with 19 other electronic items and/or components, including laptops) are exempt from tariffs for the time being. That could influence your decision to upgrade your phone now, if you need to.

Imported booze

Does the idea of adding $12k to the cost of a luxury car make you reach for a drink? If so, you may want to stock up on Scotch, South African wine, sake and other imported alcohol and put them in the cellar now.

Unless new trade agreements come together, tariffs of 50% for the European Union, 30% for South Africa and 25% for Japan are on the table come Aug. 1.

Please drink expensive booze slowly and sparingly.

Advice: Don’t let tariffs tweak you out

Whatever you do, don’t panic-buy a fridge or a Ford F-150 Lightning because you’re worried. Saving money on the sticker price of something you don’t need or can’t afford is silly. Instead, assess your current situation and decide if your budget allows for buying something big-ticket.

It may be worth it to hold on to your money now and take steps to save and prepare for the additional cost later.

Tommy Tindall writes for NerdWallet. Email: ttindall@nerdwallet.com.

The article Splurge Now, Save Later? 4 Things to Buy Before Prices Rise originally appeared on NerdWallet.

New tariffs imposed earlier this year by the Trump administration are starting to raise prices on some consumer goods, and many Michigan households are struggling as a result.

According to United Way’s latest ALICE (asset limited, income constrained and employed) report, roughly 41% of Michigan households are facing financial hardship. So how can people make the most out of the money they do have?

Khadija Mutakabbir, a licensed financial literacy counselor and an experienced loan advisor with Detroit Peer Money Mentors, says it starts with building healthy money habits.

The youth-led effort, funded through the city’s Grow Detroit’s Young Talent program, helps to educate Detroit youth about financial wellness and money management. Participating mentors receive extensive training on how to lead workshops and encourage participants to take control of their personal finance.

Mutakabbir joined The Metro on Monday to talk about the program and how her background in finance shaped her mission to educate others.

Use the media player above to hear the full conversation.

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on-demand.

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By Bernadette Joy, Bankrate.com

“Renting is throwing money away.” Has anyone ever told you this? Well, I’m here to say: It’s bad financial advice.

My husband and I have owned four different homes in three cities since 2010. If I wanted to, I could buy a house in cash today. But for the last three years, I’ve chosen to rent instead — and my net worth has grown by leaps and bounds because of that choice, not in spite of it.

This is always a hot topic, especially because renting challenges the traditional rhetoric that homeownership is the ultimate path to wealth. And I get it — owning a home is part of the “American Dream.” But if it doesn’t lead to financial freedom, homeownership may be more like a nightmare.

Let me show you how renting, when done intentionally, can actually make you richer.

Renting avoids the hidden costs of homeownership

When you own a home, you’re not just paying the mortgage — you’re also responsible for home maintenance, property taxes and insurance. In fact, Bankrate’s 2025 Hidden Costs of Homeownership Study found that the average annual cost of owning and maintaining a single-family home is more than $21,000.

Now, you’ll incur some of these costs when renting, too. Unless your rental unit includes utilities and internet, you’re probably going to have to pay out of pocket. You’ll probably pay less in electricity than you would in a large, single-family home, but for the sake of argument, let’s take these average costs at face value.

Omitting the expenses you’ll still have when renting, homeownership costs an average of $15,391 — that’s almost $1,300 you could free up each month.

While there aren’t any states that require renters insurance, most landlords have a provision in their rental contracts requiring this form of coverage. While typically less expensive than homeowners insurance, renters insurance is another cost to factor into your calculations.

And don’t forget about mortgage interest

My clients are always shocked when I have them review the amortization table for their 30-year mortgage. In the early years of your mortgage, a large percentage of your monthly payment goes toward interest. You’re not really building equity in the first few years of a mortgage — you’re mostly paying interest.

Let’s say you borrowed a $420,000 mortgage. You qualified for a 6.75 percent mortgage rate on a 30-year term. Your monthly payment is $2,724.

Of your first mortgage payment, only $362 pays down the principal balance — a whopping $2,363 goes toward interest. The balance does shift over time, and by the end of your 30-year term, the bulk of your payment goes toward the principal. But how likely is it that you’ll see the mortgage through to the bitter end, without selling or refinancing (and starting the clock all over again)?

I’ve helped five clients make the decision to sell their homes in 2025, and none of them lived there longer than a decade. So much of their money has gone to interest, and they won’t get much equity in return.

After five years of dutifully paying $2,724 every month, you’ve only gained about $25,000 in home equity. Meanwhile, your mortgage servicer will have made nearly $138,000 from your loan interest. Your five years’ worth of mortgage payments cost you $163,440, and in return, you got $25,000 in equity. Hardly seems worth it.

Rather than paying $15,000 per year in homeownership costs and vast sums of mortgage interest, I pay my rent. Sure, I won’t get a return on that money, but more cash stays in my pocket — cash I can put toward investments. Use a mortgage calculator to take a look at your amortization table and crunch the numbers for yourself.

Renting frees up capital for wealth-building

“Real estate always appreciates in value.” This one’s a myth — just ask anyone who sold a home during the 2008 financial crisis. My husband and I paid $10,000 out of pocket to sell his home at the time.

Yes, real estate can appreciate, but it’s also highly market- and location-dependent. In the past three years, the investments I’ve made in the stock market and my financial education business have significantly outpaced the return I would’ve made on a home in my local market — and with much less headache.

Unfortunately, several of my clients bought their homes at the height of the pandemic boom and are now seeing their home values decline from their peaks.

In today’s economy, renting is increasingly the more affordable option.

According to those numbers, you could save more than $9,000 per year by renting. That money could go a long way for many Americans, and even further if you reallocate that money into wealth-building assets.

After selling my home and returning to renting, I took the proceeds of the sale and invested in growing my business — that cash injection allowed me to surpass my first $1 million in revenue. In the time since, my husband and I have also contributed the maximum amount to our 401(k)s and individual retirement accounts (IRAs), allowing us to pursue early retirement.

When I transitioned from homeownership to renting, I used the proceeds from my home sale and invested in low-risk, interest-bearing accounts, like high-yield savings accounts, money market accounts and certificates of deposit (CDs). This passive income has covered my rent and other living expenses.

I have more money working for me as a renter than I did as a homeowner.

Renting can offer new social networks and income opportunities

Some of my older coaching clients tend to wrongly believe that renting equates to a decrease in quality of life. I’ve been happy to dispel that myth when they comment on the dance, improv and travel that my renting lifestyle accommodates.

I live in a one-bedroom rental in a walkable neighborhood filled with restaurants, music, theater and fitness. Post-COVID apartment buildings often feature co-working spaces, gyms and even social events that allow me to meet people from all walks of life. I felt a lot more isolated in the suburb where I used to live, which was more homogeneous, less active, and farther away from cultural events.

I’ve also been able to find more side hustles than when I lived on the outskirts, like teaching financial literacy classes or dog walking and babysitting for neighbors in my building.

The combination of downsizing and renting has also allowed me to pick up and move quickly to capitalize on potential business or job opportunities in other cities. I can afford global travel with business partners using the money I previously spent on lawn care and home DIY projects. I’ve expanded my social and professional networks and spend more time doing things that bring me joy.

Why renting can be strategic

According to Bankrate’s 2025 Emergency Savings Report, fewer than half of U.S. adults have enough emergency savings to cover three months of expenses, and about a quarter have no emergency savings at all. When you don’t have money set aside for a rainy day, it’s especially important to have tight control over your monthly spending — predictable monthly payments are key.

A fixed-rate mortgage may seem stable, but property taxes can always go up. Insurance premiums can rise, and maintenance is always more expensive than you think. Avoiding surprise repairs to water heaters, HVAC systems or roofing can also decrease the anxiety of not having enough cash savings on hand, especially when those repairs cost thousands of dollars.

Your next steps

• What expenses will actually help me build the life I want?
• Do I want a house in the suburbs because I believe it’s what’s expected of me?
• Could my money be better spent elsewhere?
• If I already own a home, have I considered the real-world costs associated with my mortgage, maintenance and other housing costs?
• How do my homeownership costs compare to rentals in my area?

Final thoughts: Owning a home can be great — if it fits your financial plan

As a first-generation American, I felt the weight of my family’s expectation to live out the American Dream — after all, they emigrated here so I could realize it. But I’m living proof that renting isn’t a step back, nor should you feel any shame for choosing to rent.

It’s been a strategic move that’s made me richer — financially, mentally, and emotionally.

Think of rent the same way you think of a gym membership or software subscription — it’s a monthly cost that may support the lifestyle you want. It’s not “throwing money away.” It’s buying peace of mind, freedom of movement and time to grow wealth in other ways.

For me, real wealth isn’t found in square footage. It’s in the daily opportunity to move and live freely according to what aligns with my own version of the American Dream.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

By Brian Baker, CFA, Bankrate.com

Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of Bitcoin.

Bitcoin is one of the most popular types of cryptocurrencies, which are digital mediums of exchange that exist solely online. Bitcoin runs on a decentralized computer network, or distributed ledger, that tracks transactions in the cryptocurrency. When computers on the network verify and process transactions, new bitcoins are created, or mined. These networked computers, or miners, process the transaction in exchange for a payment in Bitcoin.

As the prices of cryptocurrencies and Bitcoin in particular have skyrocketed in recent years, it’s understandable that interest in mining has picked up as well. A miner currently earns 3.125 Bitcoin (about $334,375 as of mid-June 2025) for successfully validating a new block on the Bitcoin blockchain. But for most people, the prospects for Bitcoin mining are not good due to its complex nature and high costs.

Here are the basics of how Bitcoin mining works and some key risks to be aware of.

How Bitcoin mining works

Bitcoin is powered by blockchain, which is the technology behind many cryptocurrencies. A blockchain is a decentralized ledger of all the transactions across a network. Groups of approved transactions together form a block and are joined by computers within the network (called miners) to create a chain. Think of it as a long public record that functions almost like a long-running receipt. Bitcoin mining is the process of adding a block to the chain.

Bitcoin miners pick transactions from a group of unconfirmed transactions, called a mempool, to form a block on the blockchain. Before they can add the block securely to the blockchain, miners must solve what’s called a proof-of-work puzzle by guessing a number (also called a nonce). This number is combined with the block’s data and processed through a function called SHA-256.

The ultimate goal: create a block hash, which is a code with enough leading zeros to be less than, or equal to, the network’s target hash. The target hash is what determines how difficult the puzzle is to solve.

Target hash example: 0000000000000000ffff00000000000000000000000000000000000000000000

Block hash example: 0000000000000000057e29f1b57c1a9d5b90a6b7f1b4f0c9e2b0a1d3e4f5c6d7

Remember the block hash must be less than or equal to the target hash. Think of it like a dice game where the only way to win is if you roll a number smaller than or equal to a some number you’re given at the beginning. That number is made mostly of zeros, so you’d need a really insane and rare roll — a hash with tons of zeros in front of it — to win. In this example, the target hash’s “ffff” represents numbers that are non-zero and the block hash is less than the target hash, therefore solving the puzzle.

If you’re wondering whether this process requires a ton of computational power, you’re right. Miners use extremely powerful computers, called ASICs, to make billions — or trillions — of guesses about which nonces could work. One computer can cost up to $10,000. ASICs also consume huge amounts of electricity, which has drawn criticism from environmental groups and limits the profitability of miners. Technically, though, you could mine Bitcoin with, say, a MacBook Pro, but unfortunately you won’t get very far because there’s not enough computing power.

If a miner is able to successfully add a block to the blockchain, they will receive 3.125 bitcoins. The reward amount is cut in half roughly every four years, or every 210,000 blocks. As of mid-June 2025, Bitcoin traded at around $107,000, making 3.125 bitcoins worth $334,375.

Risks of Bitcoin mining

• Regulation: Very few governments have embraced cryptocurrencies such as Bitcoin, and many are more likely to view them skeptically because the currencies operate outside government control. There is always the risk that governments could outlaw the mining of Bitcoin or cryptocurrencies altogether as China did in 2021, citing financial risks and increased speculative trading.
• Price volatility: Bitcoin’s price has fluctuated widely since it was introduced in 2009. Since just January 2023, Bitcoin has at times traded for less than $18,000 and more than $110,000 recently. This kind of volatility makes it difficult for miners to know if their reward will outweigh the high costs of mining.

How to start Bitcoin mining

Here are the basic components you’ll need to start mining Bitcoin.

This is where any Bitcoin you earn as a result of your mining efforts will be stored. A wallet is an encrypted online account that allows you to store, transfer and accept Bitcoin or other cryptocurrencies. Companies such as Coinbase, Trezor and Exodus all offer wallet options for cryptocurrency.

There are a number of different providers of mining software, many of which are free to download and can run on Windows and Mac computers. Once the software is connected to the necessary hardware, you’ll be able to mine Bitcoin.

The most cost-prohibitive aspect of Bitcoin mining involves the hardware. You’ll need a powerful computer that uses an enormous amount of electricity in order to successfully mine Bitcoin. It’s not uncommon for the hardware costs to run around $10,000 or more.

Bitcoin mining statistics

• Creating Bitcoin consumes 184.4 terawatt-hours of electricity each year, more than is used by Poland or Egypt, according to the Cambridge Bitcoin Electricity Consumption Index.
• The price of Bitcoin has been extremely volatile over time. In 2020, it traded as low as $4,107 and reached an all-time high of $111,970 in May 2025. As of mid-June, it traded around $107,000.
• The United States (37.8%), Mainland China (21.1%) and Kazakhstan (13.2%) were the largest bitcoin miners as of December 2021, according to the Cambridge Electricity Consumption Index.

Taxes on Bitcoin mining

It’s important to remember the impact that taxes can have on Bitcoin mining. The IRS has been looking to crack down on owners and traders of cryptocurrencies as the asset prices have ballooned in recent years. Here are the key tax considerations to keep in mind for Bitcoin mining.

• Are you a business? If Bitcoin mining is your business, you may be able to deduct expenses you incur for tax purposes. Revenue would be the value of the bitcoins you earn. But if mining is a hobby for you, it’s not likely you’ll be able to deduct expenses.
• Mined bitcoin is income. If you’re successfully able to mine Bitcoin or other cryptocurrencies, the fair market value of the currencies at the time of receipt will be taxed at ordinary income rates.
• Capital gains. If you sell bitcoins at a price above where you received them, that qualifies as a capital gain, which would be taxed the same way it would for traditional assets such as stocks or bonds.

Check out Bankrate’s cryptocurrency tax guide to learn about basic tax rules for Bitcoin, Ethereum and more.

Is Bitcoin mining profitable?

It depends. Even if Bitcoin miners are successful, it’s not clear that their efforts will end up being profitable due to the high upfront costs of equipment and the ongoing electricity costs.

Worldwide, bitcoin mining uses more electricity than Poland, a nation of 36.7 million people, according to the University of Cambridge’s Bitcoin Electricity Consumption Index.

As the difficulty and complexity of Bitcoin mining has increased, the computing power required has also gone up. Bitcoin mining consumes about 184.4 terawatt-hours of electricity each year, more than most countries, according to the Cambridge index.

One way to share some of the high costs of mining is by joining a mining pool. Pools allow miners to share resources and add more capability, but shared resources mean shared rewards, so the potential payout is less when working through a pool. The volatility of Bitcoin’s price also makes it difficult to know exactly how much you’re working for.

Bottom line

While Bitcoin mining sounds appealing, the reality is that it’s difficult and expensive to actually do profitably. The extreme volatility of Bitcoin’s price adds more uncertainty to the equation.

Keep in mind that Bitcoin itself is a speculative asset with no intrinsic value, which means it won’t produce anything for its owner and isn’t pegged to something like gold. Your return is based on selling it to someone else for a higher price, and that price may not be high enough for you to turn a profit.

(Bankrate’s Logan Jacoby contributed to an update of this article.)

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

By CORA LEWIS

NEW YORK (AP) — Hundreds of millions of ‘Buy Now, Pay Later’ loans will soon affect credit scores for millions of Americans who use the loans to buy clothing, furniture, concert tickets, and takeout.

Scoring company FICO said Monday that it is rolling out a new model that factors the short-term loans into their consumer scores. A majority of lenders use FICO scores to determine a borrower’s credit worthiness. Previously, the loans had been excluded, though Buy Now, Pay Later company Affirm began voluntarily reporting pay-in-four loans to Experian, a separate credit bureau, in April.

The new FICO scores will be available beginning in the fall, as an option for lenders to increase visibility into consumers’ repayment behavior, the company said. Still, not all Buy Now, Pay Later companies share their data with the credit bureaus, and not all lenders will opt in to using the new models, so widespread adoption could take time, according to Adam Rust, director of financial services at the nonprofit Consumer Federation of America.

Here’s what to know.

Why haven’t the loans appeared in credit scores previously?

Typically, when using Buy Now, Pay Later loans, consumers pay for a given purchase in four installments over six weeks, in a model more similar to layaway than to a traditional credit card. The loans are marketed as zero-interest, and most require no credit check or only a soft credit check.

The main three credit reporting bureaus, Experian, TransUnion, and Equifax, haven’t yet incorporated a standard way of including these new financial products in their reports, since they don’t adhere to existing models of lending and repayment. FICO, the score of the Fair Isaac Corporation, uses data from the bureaus to calculate its own credit score, and is independently choosing to pilot a new score that takes the loans into account.

Why is this important?

BNPL providers promote the plans as safer alternatives to credit cards, while consumer advocates warn about “loan stacking,” in which consumers take on many loans at once across several companies. So far, there’s been little visibility into this practice in the industry, and the opacity has led to warnings of “phantom debt” that could mask the health of the consumer.

In a statement, FICO said that their new credit score model is accounting for the growing significance of the loans in the U.S. credit ecosystem.

“Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives,” said Julie May, vice president and general manager of business-to-business scores at FICO. “We’re enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products.”

What does FICO hope to achieve?

FICO said the new model will responsibly expand access to credit. Many users of BNPL loans are younger consumers and consumers who may not have good or lengthy credit histories. In a joint study with Affirm, FICO trained its new scores on a sample of more than 500,000 BNPL borrowers and found that consumers with five or more loans typically saw their scores increase or remain stable under the new model.

For consumers who pay back their BNPL loans in a timely way, the new credit scoring model could help them improve their credit scores, increasing access to mortgages, car loans, and apartment rentals. Currently, the loans don’t typically contribute directly to improved scores, though missed payments can hurt or ding a score.

Since March, credit scores have declined steeply for millions, as student loan payments resume and many student borrowers find themselves unable to make regular payments on their federal student loans.

What are the risks and concerns?

Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending, said her main concern is that the integration of the loans into a score could have unexpected negative effects on people who are already credit-restrained.

“There isn’t a lot of information out there about how integrating BNPL into credit scoring will work out,” Chabrier said. “FICO simulated the effect on credit scoring through a study. They saw that some users’ scores increased. But if you factor in something that, last week, didn’t affect your credit, and this week, it does, without having very much information about the modeling, it’s a little hard to tell what the consequences will be.”

Chabrier cited research that’s shown that many BNPL users have revolving credit card balances, lower credit scores, delinquencies, and existing debt. Women of color are also more likely to use the loans, she said.

“This is a credit vulnerable community,” said Chabrier.

Will consumers see immediate effects?

Rust, of the Consumer Federation of America, said he doesn’t expect this to be a game-changer for consumers who already have a credit profile.

“Are we at a point where using BNPL loans will dramatically alter your credit profile? Probably not,” he said. “I think it’s important that people have reasonable expectations.”

Rust said the average BNPL loan is for $135, and that repaying such small loans, even consistently, might not result in changes to a credit score that would significantly move the needle.

“It’s not about going from 620 to 624. It’s about going from 620 to 780,” he said, referring to the kind of credit score jumps that affect one’s credit card offers, interest rates on loans, and the like.

Still, Rust said that increased transparency around the loans could create a more accurate picture of a consumer’s debts, which could improve accurate underwriting and keep consumers from over-extending themselves.

“This addresses the problem of ‘phantom debt,’ and that’s a good thing,” he said. “Because it could be something that keeps people from getting too deeply into debt they can’t afford.”

The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

By Lauren Schwahn, NerdWallet

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

No, we’re not asking your name. And we promise we’re not trying to offend you.

HENRY isn’t an insult; it’s a nickname given to a certain demographic in the personal finance world. If you earn a decent income, but feel like you aren’t building enough wealth, you might be a HENRY.

What is a HENRY?

HENRY is an acronym that stands for “High Earner, Not Rich Yet.” But what does it mean to be high earning? The definition varies depending on who you ask.

We sifted through Reddit forums to get a pulse check on what users say about HENRYs. People post anonymously, so we cannot confirm their individual experiences or circumstances.

Over on Reddit in the r/HENRYfinance subreddit, HENRYs are defined as “people who earn high incomes, usually between $250,000 to $500,000, but have not saved or invested enough to be considered rich.”

Net worth is another key number to consider.

Trevor Ausen, a certified financial planner in Minneapolis, Minnesota, says that HENRYs often have “somewhere between negative net worth, thanks to student loans or early career costs, to around $1 million in assets.”

Having an income or net worth above these figures tips the scales toward “rich.”

Who is the typical HENRY?

HENRYs are often business professionals, doctors, lawyers or tech employees with equity compensation, Ausen says.

Many live in places like New York or the Bay Area, he adds, where it can be hard to accumulate wealth even with a high salary due to the high cost of living. They’re usually in their 20s, 30s or 40s.

In some cases, HENRYs are also the first in their families to earn a higher income. That can come with added pressure to provide financial support for relatives and create generational wealth.

How do you know if you’re a HENRY?

Now that you know what a HENRY is, let’s see if you fit the bill.

“If you’re earning well but still feel like you’re just getting by financially, you might be a HENRY,” Flavio Landivar, a CFP in Miami, Florida, said in an email interview.

You might be a HENRY if you:

• Earn an above-average income (typically in the low to mid six-figure range).
• Live in a high-cost area.
• Spend most of your income on costs such as housing, student loans, child care and discretionary expenses.
• Don’t feel financially secure.

But not all HENRYs are the same.

While many have trouble building wealth because student loans or living expenses eat up their income, others are saving aggressively, Ausen says.

“They’ve only been high earning for a short amount of time, and just have not had the time to really build up those assets and save enough where they can be considered rich,” he says.

Ausen says his HENRY clients generally have too much cash. After maxing out their 401(k)s or other retirement accounts, they aren’t putting their extra money to work in an investment account.

If you’re parking a lot of cash in a general savings or checking account, that’s a sign you might be a HENRY.

“While there certainly is an argument for how much emergency fund, essentially, someone should have, after a certain point, it starts to become not as efficient as it could be,” Ausen says.

What do HENRYs care about?

Like most people, HENRYs want more money and greater financial freedom. Online discussions in r/HENRYfinance and other forums often focus on lifestyle creep, career growth, investment options and strategies for minimizing tax burdens.

HENRYs are also looking for quick guidance and reassurance that they’re on the right track.

“These young professionals may be settling into their careers, gaining responsibilities and have less leisure time than they used to,” Yesenia Realejo, a CFP with Tobias Financial Advisors in Plantation, Florida, said in an email interview.

“They may be starting families, buying homes, saving for their children’s college. With so much on their plates, they may find that they’re saving, but have no planned financial direction.”

Is being a HENRY good or bad?

If you’re a HENRY, you may feel stuck. It might seem like you aren’t making enough progress toward your financial goals.

But it’s important to emphasize the “Y” in HENRY. You’re not rich yet — that doesn’t mean you’ll never be rich.

“With smart planning, managing expenses and focusing on long-term goals, HENRYs have a great opportunity to build real wealth down the road,” Landivar said.

“Without that focus, though, it’s easy to stay stuck living paycheck to paycheck despite a high income.”

Start by making, or revisiting, your financial plan. If you’re not sure where to begin, consider getting help from a financial advisor. Getting rich may happen sooner than you think.

More From NerdWallet

• Practical Ways to Tackle Overspending
• Where to Park Cash if You’re Worried about the Stock Market
• Here’s How I Made $360 Selling Stuff on Facebook Marketplace

Lauren Schwahn writes for NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn.

The article Are You a HENRY? originally appeared on NerdWallet.

Both my father and father-in-law were small business owners. Small businesses are the backbone of this nation. Not only do the owners have to be experts in their chosen field, they must also wear many other hats. They’re the HR department, the bookkeepers, the salespeople and PR department, all the while keeping a watchful eye on a multitude of regulations and red tape.

To this day I can hear my father pounding away at his adding machine, eventually tearing away a foot-long tape, then carefully reviewing the list. At the time I didn’t understand his occasional frustration, but I eventually realized it was because some days ended up in the red.

I was not as familiar with the inner workings of my father-in-law’s business, but I did observe that, as with my father, he seemed to have a multitude of duties and deadlines on his plate. Both were juggling a lot of balls on any given day and were extremely dedicated and hard working. Lessons learned.

No matter how busy, both men knew the importance of carving out time for their families. My dad rarely missed any little league games, or anything remotely important to a child. I’ve striven to carry their examples with me throughout my life, and I believe I’ve successfully passed their strengths and values on to my sons.

The days of those old adding machines spinning out small rolls of paper are long gone. Laptops, iPads and iPhones are far more powerful and efficient than our fathers could ever imagine. Being a small business owner today is much different than it was years ago. But even as technology explodes, the life lessons remain constant and valuable.

Many of the lessons I learned from my father and passed on have great financial relevance. Here are some of the lessons I’m confident my sons will pass on to their children.

Listen carefully. Whether it’s school or work, be attentive and respectful. Listening is a financial trait because far too many people have financial issues because they don’t listen to good advice.

Work hard. That doesn’t necessarily mean putting in more hours than everyone else. Just give it your very best effort when you’re assigned a task. Working smarter is more important than just putting in long hours. Take pride in your work.

Have a piggy bank. Sure, it’s a bit more difficult today because so many people use credit cards. I think the convenience of plastic instead of cash is one reason so many have financial issues. That being said, teach your children the value of regular saving. They need to understand the importance of paying themselves first.

Manage your debt. Financially, there’s nothing worse than carrying the burden of credit card debt. It’s not only a financial drain; it can also create serious mental strain. Money issues are the root of far too many divorces.

Be honest. The most important thing I learned from my father transcends finances. Honesty is important in every part of your life, but it’s front and center in financial transactions. Simply stated, do the right thing. Not only with your money, but in all aspects of your life.

Happy Father’s Day to all. Hopefully, you also have fond memories and have passed on some valuable lessons from your dad.

Email your questions to kenmorris@lifetimeplanning.com

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. https://kestrafinancial.com/disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.

A Reddit user recently asked for advice on ways to stop thinking about money nonstop.

It’s hard, the user explained, to avoid fixating on personal finances. Comparing yourself to others can be tempting, even though doing so doesn’t feel good or productive.

Other users jumped in to offer tips, such as talking to a therapist, finding a new hobby, scaling back on social media and saving enough for a sufficient safety net.

Financial experts say focusing on your own financial plan is the best way to avoid thinking too much about what other people might be doing.

Make a plan

“Something about having a plan in place takes a lot of the stress off,” says Dwayne Reinike, a certified financial planner and founder of Valiant Financial Planning in Kirkland, Washington.

Similar to how writing down everything on your to-do list can make it easier to sleep at night, he says creating a basic financial plan allows you to relax. That plan can include a budget, retirement goals and other savings targets.

You might hear that the markets are down or concerns about a coming recession, “but it’s OK, because you have a plan,” Reinike says.

Pick one goal to focus on

Picking one goal to focus on — such as saving up for a house or setting limits for spending — can give you a greater sense of control over your financial life, says Stephanie Loeffel, a CFP and founder of Ascend Financial in the Boston area.

If you don’t have a goal to guide you, she says, then it’s easy to bounce between different ideas based on the day’s news. If interest rates fall, you might wonder if you should buy a house. If the stock market fluctuates, you may question whether it’s time to shift your retirement investments.

She recommends zeroing in on what you can control: your own spending, saving and other financial habits.

“You take the emotion out of the equation and it’s easier to not obsess about the noise around you,” Loeffel says.

Designate a specific time to focus on money

Setting aside time at least once a year to map your financial plans can ease your mind the rest of the time.

Use that time to think about what you want to achieve with your money. You can also set short-term and long-term goals, says Reinike.

“If you have your emergency fund set up and on auto-deposit, then you can go a year or so without thinking about it,” he says. (You may want to conduct quick check-ins throughout the year to check for any errors.)

Similarly, a retirement savings account with automatic deposits from your paycheck doesn’t need to be constantly monitored.

If unexpected events pop up, such as a new baby or a job loss, then you can revisit those plans and adjust. Otherwise, you can maintain your current course.

“People tend to make changes when they’re really happy or really upset, and that’s not the time to make changes. It’s the time to stick with the plan you already established,” Reinike says.

Build up savings and pay off debt

Another way to gain more control over your finances is to double down on saving money and paying off debt, Loeffel says. Many of her clients are surprised about their expenses once they start tracking them.

Monitoring your cash flow for six months is a good place to start. Then, make adjustments to eventually achieve a goal of putting around 10% into savings. That can help build up an emergency fund.

“Once you have an emergency fund, you’re not as vulnerable,” Loeffel says.

That makes it easier to worry less about negative events that can hurt your finances.

“It takes away that emotional vulnerability because you have a cushion and you have control,” she says.

Similarly, paying off debt is something you can control. You can make a plan for paying off debt — perhaps using the avalanche or snowball method — then watch your progress as the weeks tick by, Loeffel says.

The avalanche method involves paying the debt with the highest interest rate first. The snowball method refers to building momentum by paying off the smallest debt balances first.

Avoid comparisons to others

“Compare yourself to the you of yesterday, not everyone else,” suggests Reinike.

Just as in sports, you should strive for a personal best — not necessarily doing better than others.

You really can’t compare your financial situation to others based on social media. Posts don’t tell the whole story or how people are funding their lifestyle, Reinikehe adds.

“Everyone’s journey is individualized.”

Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like saving and budgeting, so we sifted through Reddit forums to get a pulse check. People post anonymously, so we cannot confirm their individual experiences or circumstances.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article Asked on Reddit: How to Stop Obsessing About Money originally appeared on NerdWallet.

By Ariana Arghandewal, Bankrate.com

Credit cards are widely accepted in most parts of the world, which is great for those who want to maximize rewards on their trips abroad. Not only do many cards offer generous rewards on travel spending, but they also provide convenience and an added layer of protection in case your trip doesn’t go as planned.

Using a credit card is better than using cash in most cases. However, you may still encounter issues when attempting to use your credit card abroad, so make sure to plan accordingly.

Can I use my credit card abroad?

In most cases, yes! The country you’re visiting may have different banks, but many of the payment networks common in the U.S. are widely accepted around the globe. Some credit cards, most commonly travel credit cards, even have no foreign transaction fees and earn rewards on specific purchases worldwide, such as restaurants. This helps you save money and earn more in rewards when you travel.

However, it’s important to know that while your card can be used abroad, it doesn’t mean it will always work. If your card is worn down or tends to be a little faulty at home, it can be just as finicky outside the country. Or if your credit card issuer is unaware that you’re traveling, they may assume your identity is stolen and decline your purchases. Some payment networks are also less common abroad. Luckily, there are workarounds to a few of the most common issues you may come across.

Bankrate tip

See Bankrate’s Travel Toolkit for tips and insights to boost your savings and maximize your travel.

How to make sure your credit card works abroad

A handful of factors may prevent your credit card from working overseas. Most of them have simple solutions and require just a bit of advance planning.

—Use a widely accepted issuer. Visa and Mastercard are the most widely accepted credit card payment networks worldwide. While American Express and Discover can come in handy in many situations, you may want to bring a backup Visa or Mastercard while traveling abroad, just in case.

—Use chip and PIN cards or a digital wallet. In many countries around the world, chip and personal identification number (PIN) cards are the norm. These cards use a microchip and PIN to validate transactions, instead of a cardholder’s signature. Rather than swiping the magnetic stripe through the card reader, consumers insert the card into the machine and enter the PIN associated with the chip. If you have a card with a chip in your wallet, set a PIN so you don’t run into trouble using it abroad.

Digital wallets are also becoming the norm for storing credit cards, debit cards, and even boarding passes for your flight. They often lead to faster, more secured payments with a lower risk of being lost or stolen. So, it may be beneficial to set one up and add your card. This way, you can keep the physical card tucked away as a backup.

—Notify your bank of your travel plans. If you’ve booked any part of your trip on your credit card, notifying your bank isn’t usually required. If you did not use your credit card for any bookings, then providing advance notice of your travel plans reduces the odds of your bank declining your transactions abroad. Knowing that you’ll be in Paris for a week, your bank is less likely to reject your purchases at patisseries. They’ll know your credit card isn’t compromised — you’re just being a tourist.

Is it worthwhile to use a credit card abroad?

Yes, using your credit card abroad provides security and convenience that cash does not. You’ll potentially earn rewards on every purchase, which you can save and redeem toward future travel experiences. The items you buy may also be covered by purchase protection, giving you extra peace of mind. More importantly, you won’t have to carry large amounts of cash and worry about the security risk it poses.

While you should bring some cash for smaller purchases or in a city where it’s the main form of payment accepted, a credit card provides stronger protection and other added benefits.

Are there fees for using a credit card abroad?

You’ll encounter two types of fees when using a credit card abroad — foreign transaction fees and merchant fees. Foreign transaction fees are around 3% and can be avoided since many travel rewards cards waive them.

Merchant fees can include surcharges or convenience fees for using your card. These fees help to offset the merchant’s processing costs and can vary from 3% to 8%. These fees help offset the costs of the added protection you receive from a credit card.

Unfortunately, there isn’t much consumers can do about these fees. You can either pay the fee, use cash or shop somewhere else to get around them. Still, there is a small way to save some money when using your card.

If a merchant asks whether you want to pay in U.S. dollars or the local currency, always opt for the local currency. Your credit card issuer is likely to give you a much better conversion rate than the local business owner will.

Also, always opt out of dynamic currency conversion, which allows cardholders to handle transactions in their home currency when shopping or taking money from an ATM. While you may be able to know the actual price of your purchase, the additional fee often makes the purchase higher than it would be otherwise.

The bottom line

What you pack in your wallet matters as much as what you put in your carry-on when you travel abroad. You’ll want to bring one or more credit cards with a widely accepted payment network. Even better, bring one that offers purchase and travel protection, generous rewards and travel perks. You may encounter a few issues when using a credit card to pay for purchases, but there are workarounds. By following safe use practices, you won’t have to carry large sums of cash or worry about your transactions getting declined.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

The Trump administration recently announced a plan for steep port fees on Chinese-built vessels, which dominate global trade and are frequently in San Diego Bay.

The idea is to limit China’s dominance in the seas by making it more expensive to use their vessels and, in theory, push the nation’s importers into the arms of the comparatively small U.S. shipbuilding industry.

The new Chinese levies, which wouldn’t take effect until mid-October, could cost an importer roughly $150 a car, according to estimates from the Port of San Diego. There is concern from the shipping industry that the levies, on top of tariffs, could significantly impact global trade.

U.S. shipbuilding is practically nonexistent compared to China and others. Critics argue there is no way (at the moment) for the U.S. to catch up and the whole plan will just mean increased costs for consumers. President Donald Trump has argued it is vital for national security that America builds up its shipbuilding industry.

Question: Is the Chinese-built vessel levy proposal a good one?

Economists

Caroline Freund, UC San Diego School of Global Policy and Strategy

NO: It will act as yet another tax on the U.S. consumer without spurring investment in shipbuilding. Shipbuilding is a huge, complex endeavor and expanding capacity would take many years. Trump’s record of on-again, off-again tariffs means that this policy is unlikely to promote any new investment, since the levy could be gone tomorrow. Moreover, China would likely retaliate with a tax on U.S.-built aircraft, hurting the U.S. aerospace industry and its workers.

David Ely, San Diego State University

NO: The U.S. cannot quickly create the capacity to produce ships at a volume sufficient to replace Chinese-built vessels that are now docking at U.S. ports.  A levy imposed now would drive up transportation costs that will be passed onto consumers. Policies to incentivize capital investment in the U.S. shipbuilding industry, and grow the workforce, should be emphasized in the near term. The levies should be delayed until the restoration of the industry is underway.

Ray Major, economist

YES: The vessel levy is another tool in the tool box that the U.S. can use to encourage China and other countries to adopt a more fair trade policy. They can easily be removed when a trade deal is in place. The levy amounts to 0.00375% of the value of a $40,000 car.

Kelly Cunningham, San Diego Institute for Economic Research

NO: Attempts at micromanaging the economy are unproductive and detrimental. Top-down manipulation of shipping production will cause unintended consequences and dysfunction. Imposing complicated rules and tariffs for shipping goods and services makes trade more expensive and lessens productivity of all. Voluntary exchanges of “free trade” benefit all participants and facilitate the specialization and division of labor. Economic development is not zero-sum where one gains at the expense of others losing. Put “free” back into free trade.

Alan Gin, University of San Diego

NO: The economic infrastructure is not here for more shipbuilding in the U.S. One problem is that not enough steel is produced in this country. Another is that labor is more expensive here, and there is less desire to work in manufacturing. Those situations could improve in the future, but it would take a long time, and the U.S. is not likely to approach China’s shipbuilding capacity. In the meantime, consumers will be hurt as prices for products carried by Chinese ships will increase.

James Hamilton, UC San Diego

NO: It would be hard to find a business or consumer in America who would not be affected through the goods they try to produce, buy or sell by this policy. Any effects on U.S. shipbuilding would be years down the road. And the very long-term investments that are required to build more ships are difficult to influence with policies that come out of nowhere and may have changed by the time these words hit print.

Norm Miller, University of San Diego

YES: Nothing says “free market economy” like a special fee slapped on vessels built somewhere else. It’s a genius idea. Why compete by building better and bigger ships or planning ahead? Who needs cheaper shipping and global trade stability anyway? After all the tariffs, consumers and businesses will barely notice the extra costs. Of course, I’m sure China will just graciously accept the new levy with no retaliatory measures that could hurt the U.S. exporters. (Sarcasm noted).

Executives

Phil Blair, Manpower

NO: All tariffs and “port fees” will clearly increase the cost of goods for Americans. Both new expenses will be passed on directly to consumers. The U.S. shipbuilding industry is so expensive compared to the rest of the world due to very high wages compared to wages paid in other countries for equal skills. That spread in wages may be acceptable to Americans to encourage well paid jobs, but consumers need to know why certain industries in the U.S. cannot compete with other countries on price.

Gary London, London Moeder Advisors

NO: I am sympathetic to measures that are designed to reduce Chinese dominance across broad sectors. However, the more realistic approach would be policies that incentivize shipbuilding elsewhere across the globe. This is not different than the other tariff-led domestic manufacturing goals. The economics of manufacturing mostly don’t work here, primarily due to the cost (and shortage) of labor. Why don’t we spread more business to other nations rather than indiscriminately slap everyone with tariffs?

Austin Neudecker, Weave Growth

NO: A levy on Chinese-built vessels will raise costs for U.S. importers and consumers without offering any strategic benefit. China dominates shipbuilding due to infrastructure that our domestic producers abandoned decades ago. Rebuilding a competitive ship industry would take years, require major government subsidies and yield higher-cost products. Punitive fees will not change these fundamentals, they will further disrupt trade and shift demand to other low-cost countries, not revive U.S. shipbuilding.

Jamie Moraga, Franklin Revere

YES: If it’s being used as a negotiation tactic in the trade war. If not, while national security, stability, and local shipbuilding growth are important, adding levies to tariffs this year may not be wise. A measured approach is needed — too much too soon risks U.S. supply chain disruptions, higher costs, job losses, and higher prices. Rebuilding U.S. shipbuilding requires significant time and investment. Implemented too soon, new levies could do more harm than good without strong domestic infrastructure.

Chris Van Gorder, Scripps Health

NO: Like many of President Trump’s ideas, it could be very good as a long-term strategy, but not good as a short-term economic decision. It would take many years to build up our own ship construction capabilities and in the meantime, prices consumers pay now will be increased. Let’s develop a long-term strategic plan, not a short-term reaction that will not benefit the average person or business.

Bob Rauch, R.A. Rauch & Associates

YES: The levy aims to revive U.S. merchant shipbuilding, which has declined in recent decades. With China controlling more than 50% of global shipbuilding, the policy could encourage diversification and counter market abuses. While industry stakeholders worry about costs and trade disruptions, fees apply only to Chinese-linked or Chinese-built vessels. The long-term impact remains uncertain, but the policy signals a strategic shift toward reducing reliance on Chinese-built ships.

Have an idea for an Econometer question? Email me at phillip.molnar@sduniontribune.com. Follow me on Threads: @phillip020