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Balancing budgets with spending on what makes you happy
It can be easy to give into spending on something that might give you temporary satisfaction. But staying within whatās right for your budget will help your long-term financial well-being, according to this Harvard professor.
US stocks rose on Friday following the release of some key inflation data
• Tech stocks slipped, including Amazon, which closed down 1.6%. However, Salesforce rebounded from its sharp decline the day before, closing up 7.5%.
• Core PCE inflation, the Federal Reserveās preferred inflation metric, showed consumer prices rose 2.8% year-over-year in April, slightly more than expected.
• For the week, all three indexes finished lower, sending the S&P 500 and Nasdaq Composite to their first losing weeks in more than a month.
What to be on the lookout for today
• An update on manufacturing activity for April from the ISM.
• In earnings, GitLab will report.
How to have the āmoney talkā with your college-bound kid
So your baby is headed off to college. Or maybe itās a niece or nephew, or your godson or goddaughter.
Thereās likely going to be a lot of talk about what life away from home is going to be like. But one of those chats should be about money.
Going off to college brings a lot of freedom ā and responsibility. Here are some things to start your conversation.
Personal finance 101
What can they spend? Help them create their first budget that reflects how much money theyāll have available to spend each month along with expected expenses. Also talk about how to avoid credit card debt.
Building non-academic credit. College students are often bombarded with credit card offers. While establishing credit early can help build their credit history, students need to understand how credit cards work, the dangers of high interest rates and how to spend responsibly. Parents can likely add a child as an authorized user to their credit card, which allows students to build credit but also requires an understanding of terms of use from all parties before the charges for 2:00am pizza deliveries show up.
Talk about debt. Many college students will graduate with student loans, but donāt wait until theyāre feeling the impact of their borrowing to talk about repayment options. Make sure your child understands their loans, calculate what their monthly repayments will look like and the potential impact on their overall budget before their first day on campus.
Todayās top stories
Itās jobs week!This weekās economic calendar is all about jobs. Americaās labor market is in somewhat of a sweet spot right now, where workers arenāt quitting, and companies arenāt laying people off en masse. Hereās what you need to know and what else is ahead on Wall Street.
Read more >> Global debt hit a record high in Q1 2024Global government debt is an abstract concept but it's worth knowing about. In the past years, pandemic government stimulus and high inflation have contributed to its growth, and earlier this year, it hit a record high. Hereās what you need to know.
Read more >> How to keep your bank account safeOnline banking is so convenient, few of us would want to live without it. But it pays off to be on the safe side too, with strong passwords, two-factor authentication, and more.
Read more >>Other news that caught our eye
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Tesla is recalling more than 125,00 vehicles in the U.S. over a malfunction related to its seat belt warning system. There will be an over-the-air software update to address the issue.
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The FAA extended its temporary block on Boeingās MAX 737 production and will conduct monthly reviews until it is satisfied that manufacturing quality has improved.
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The Department of Labor is suing Hyundai for allegedly allowing a 13-year-old to work on an assembly line at a parts manufacturer in Alabama. The automaker argued it was not directly responsible for employing the child.
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A U.S. Congressional committee found Trump tax cuts could cost 50% more than originally forecasted because wealthy taxpayers are exploiting loopholes.
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Pandemic-era supply chain constraints are still a bottleneck for air travel growth, according to Delta Air Lines CEO Ed Bastian, as many airlines face extended wait times for engine components.
Financial planner tip of the day
"Once you know where you stand with your budget and your savings goals, you may want to start by building a sort of 'starter' emergency fund, sometimes called an account buffer ā then move forward with a personal debt reduction plan, like the debt avalanche, debt snowball, or the hybrid debt fireball, which focuses on paying high-interest debt in a way that can build momentum and keep you motivated."
Brian Walsh, CFPĀ® at SoFi