Top Story
1 in 3 graduates aren’t sure they have the skills to succeed
And we’re not talking about the skills required to become rocket scientists. Recent grads feel unprepared for adult life, including managing their finances or things like cooking, according to this study.
US stocks started the second quarter mixed on Monday
• On Friday, while markets were closed for Good Friday, the Federal Reserve’s favorite inflation index, the core PCE, reached its lowest level year-over-year since March 2021. But inflation still sits at 3.5% on a three-month annualized basis.
• In a speech on Friday, Fed Chair Jerome Powell said there was no need to rush interest rate cuts while economic growth remains strong and inflation above target. The data and Powell’s remarks sent the U.S. 10-year yield more than 10 basis points higher on Monday to 4.32%.
• Manufacturing activity in March expanded for the first time since September 2022.
What to be on the lookout for today
• Job openings for February.
• In earnings, Dave & Buster’s and Paychex will report.
Not all debt is bad debt
Debt can get a bad rap. And to be fair, it’s complicated. Carrying too much debt can be debilitating to your finances. And you want to avoid borrowing more money than you can afford to pay off, especially if you add interest on top. But sometimes, debt is necessary, for example to buy a home, or a car, or a college education.
At the end of 2023, total U.S. household debt stood at $17.5 trillion, according to the Federal Reserve Bank of New York.
That’s a staggering number.
Good vs bad debt
The idea of good versus bad debt can be confusing. Here’s what it means.
Generally, borrowing money that has the potential to expand your wealth, or improve your earnings potential is considered good debt. That includes home loans, or student loans.
Bad debt, on the other hand, is money owed for expenses that depreciate in value over time, such as car loans, or offer no-long term financial gain, like credit card debt.
The type of debt you incur and how you manage it is important because your payment history and credit mix are factors that help determine your credit score, which affects your ability to borrow money.
If you’re looking to manage your debt better, our debt summary tool can help you make sense of it all.
Today’s top stories
Is Big AI just Big Tech in sheep's clothing?Microsoft, Amazon, Google and the likes are making sure they’re not missing out on the AI train.
Read more >> F is for Fedspeak and for jobs Friday. Here’s what’s ahead on Wall StreetIt’s a new month and a new quarter, and investors are wondering if anything major has changed for the Fed.
Read more >> March was another month of records for the marketThe S&P 500 recorded more than 20 record closes in the first quarter of 2024. Here’s a lookback at what drove the market in March.
Read more >>Other news that caught our eye
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UPS will replace FedEx as the primary air cargo provider for the U.S. Postal Service.
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Gold prices pushed to a fresh record high after cooler inflation data on Friday added to rate cut optimism.
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Federal Reserve Chairman Jerome Powell said the latest inflation data is “along the lines” of what policymakers want to see.
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AT&T discovered a data breach affecting roughly 7.6 million current account holders and more than 65 million former account holders whose personal information, including passcodes and social security numbers, were stolen.
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Fast-food workers in California will earn a $20 minimum wage starting today, resulting in a pay bump for some half million workers.
Financial planner tip of the day
“One survey found that Americans underestimate their spending on subscription services by a whopping 84%. Putting all your monthly subscriptions on one card can simplify the way you keep track of your spending.”
Brian Walsh, CFP® at SoFi