All Articles Tagged "finances"

Millennials Would Rather Receive Monetary Wedding Gifts Than Appliances

July 27th, 2015 - By Lauren R.D. Fox
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In true millennial fashion, the envelope-pushing generation’s latest trend is bypassing traditional gifts at their wedding.

Instead, millennials are more interested in monetary gifts than receiving china or cutlery. Besides money, millennials are also opting for home repair gift cards or all-inclusive honeymoon adventures. Nina Vitale told The New York Times, “It’s a generational thing. During the past two years, guests have been bringing mostly envelopes, no gifts.”

One couple told The Times they registered at Bloomingdale’s for older friends and relatives who were not tech-savvy or felt uncomfortable giving cash as a wedding gift. However, for their friends who didn’t mind, the couple created an account with Simple Registry, a site where guests can financially contribute towards a couple’s honeymoon activities.

Jason Dorsey, who serves as the chief strategy officer and millennials researcher at the Center for Generational Kinetics, revealed how millennials celebrate their wedding is due to student loans, marriages taking place later, purchasing property or conceiving children before marriage. Because of these other expenses, millennials crave experiences rather than shelling out funds for materialistic appliances.

Dorsey continued saying, “Less is more. This generation of couples live in smaller spaces and don’t need gifts. They would prefer a visit a yoga retreat or tickets to a concert. They want more personal reflections of what they value.”

An assistant professor of sociology, Dr. Arielle Kuperberg also gave insight on this new trend. “When people have lived on their own for years, it is hard to register when they marry,” she said. “This generation of couples also cohabitate in great numbers, entertain casually, marry later. We call this the ‘independent life stage’ in sociological terms. They don’t need anything more for the house.”

When reading the case studies of couples via The NY Times, many still create registries in order to appease those who aren’t ready to break with tradition. In order to bridge the various gaps, couples seek different types of gifts from family and friends who will support their wishes, whether it be helping them with their honeymoon fund or purchasing fancy china for future family dinners.

Don’t Cheat Yourself: 15 Things That Are Worth Splurging On

July 17th, 2015 - By Meg Butler
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Image Source: Shutterstock

Smart shopping is an art form. But it doesn’t always mean looking for the cheapest price. Even master bargain hunters have to know when spending a little more can do a lot for your quality of life.

Know Your Boo’s Bank Account! 43% Of Couples Inaccurately Guessed Their Partner’s Salary

July 2nd, 2015 - By Kimberly Gedeon
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We get it. Talking about finances with your partner can get a little — well — awkward. But trust me, an uncomfortable financial discussion now will save you the whirlwind of money troubles you may plummet into later. You don’t want to be among the 43 percent who inaccurately guessed their significant others’ earnings in Fidelity Investments’ 2015 Couples Retirement Study.

And here’s the kicker: Despite the fact that four in 10 clearly have a hazy idea about their partner’s finances, a whopping 72 percent say they communicate “exceptionally” or “very well” with their significant other. America has a problem — and that’s getting into the nitty gritty of our relationships’ finances.

MadameNoire Business spoke with Kristen Robinson, Fidelity’s SVP of Women and Young Investors, to get some insight on why we shy away from crucial financial talks.

“For many, conversations about money can feel uncomfortable. In some cases we don’t know how to start a discussion, so we put it off, even though we know it’s important,” Robinson said. “Clearly though, avoiding the conversation leads to these disconnects.”

The “disconnects” that Robinson is referring to is the significant share of couples in the study who have a fuzzy idea about their future financial standing — particularly retirement.

“We saw in the survey that one in three couples disagree on the kind of lifestyle they want to live in retirement – how they want to spend their time,” Robinson said. “Those disagreements could likely be avoided by tackling the topic head on.”

On top of this, nearly half of couples had absolutely “no idea” how much money they would need to maintain their current lifestyle when they retire. And 48 percent of couples disagreed on the amount needed to preserve their present way of life.

Yikes!

Robinson says that all this confusion can be avoided with an in-depth financial discussion. There must be a time where couples put away the mushy-gushy talk and get serious about money.

“Sure, you can name their favorite color, but when it comes to building a life together, do you know what your other half brings to the table?” Robinson asked. “Get to know what investments your partner has.”

Robinson also suggests discussing future expenditures — such as having a family, buying a home, and saving for your children’s college education. “These sorts of discussions should not be left to impulse. Planning together and making decisions jointly can make life a lot easier,” she said.

And again — we get it. It’s financial talks are awkward. But Robinson gives us all a tip on how we can break the ice: “Use something timely, like planning a vacation together. This opens the door to talking about how you’ll share the expense of paying for travel costs and activities. Sharing what you’re comfortable spending and what your limits may be can lead to a broader discussion about your own financial situation and goals.”

This is brilliant. While you’re getting the scoop on your partner’s financial position on a short-term plan, you can gauge where he or she stands in the long run.

Robinson suggests you check out the Fidelity’s Couples Quiz, and Conversation Starter Guide to get started.

Goodbye, Sallie Mae: How To Pay Off Your Student Loan Debt Faster

April 14th, 2015 - By Meg Butler
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Student loans are a pain, but they don’t have to be for long. These tricks to paying off your student loans faster will put you at the top of the debt-repayment class.

Why Men Shouldn’t Fear Women Who Make More Money

April 10th, 2015 - By Madame Noire
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Source: Shutterstock

From MommyNoire

Moms, do you bring home a bigger salary than your man? If you do – is he bothered by that? Do you get the feeling like he’s hating on your hustle because you are the primary breadwinner within your house? Do know – for many men, a woman with a bigger paycheck can play with a man’s ego, and because of that, men often run away from women who appear to be strong, independent, educated, and financially set. Most men have been raised and taught that they should be the sole provider of their household.

But we all know with today’s economy that’s not happening in many cases. In fact, you have a lot of men being stay-at-home dads, but that’s another post. To tell you the truth, I don’t know why men get upset if their woman brings in most of the money. If you are moving as a team, for the greater good, then the only thing that should matter is the bottom line. I tell my fellas all the time that they shouldn’t be upset because their woman is stacking. Honestly, I feel like the more the merrier. Here is my advice on that scenario, if you and your partner are in a committed relationship and are living together, or in some cases separately, come up with a financial game plan so you both can win. No need to run from that – unless you don’t have a vision of how good things could be if you blend your funds.

If the woman got a good job, ask her about her come up and for communications sake, ask her to show you the road map to success. You know what I’ve learned after falling on hard times, and during some of those broke days – if you have a woman who is financially stable, if you ever fall on hard times again, she can and often will hold you down until you get your feet back on solid ground. For instance, I run a few businesses, so when dating, its important for me, at this stage, to find a woman who can bring something to the table, so we can build a stronger family unit. Running a business demands a lot of my money, so it doesn’t make sense for me to deal with a woman who isn’t thinking about the bigger picture, or be able to help us overall. If she makes more while I’m laying down the foundation – we can do more together.

Read more about financial issues in relationships at MommyNoire.com 

U.S. Dollar Becomes Stronger, Lowering Travel Expenses For Americans

April 6th, 2015 - By Lauren R.D. Fox
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Just in time for travel season, the US dollar is coming on strong, lowering the cost for Americans to vacation abroad.

Over the past nine months, the U.S. currency has become stronger—leveling against other global currencies. Currently in Europe, it costs $1.09 to buy €1 rather than $1.37 (2014) or $1.50 (2011). So if you head to Paris right now you can purchase 25 percent more croissants, café au laits or mini Eiffel towers than years past.

The US dollar can also purchase 30 percent more Swedish kronor, 40 percent more Brazilian reais and 61 percent more Russian rubles, reports the Los Angeles Times. Not only has the dollar strengthened US spending habits, the overall U.S. economy is stronger than other global economies. The economy has also attracted investments and there is a rising international demand for the dollar. This new financial development has pushed the U.S. economy into its best position since 2003.

Although other economic markets are sinking, many countries use this as a tool to revive economic growth by decreasing prices of its exports, stocks and real estate. Richard Bernstein who serves as a financial advisor in New York believes, “Countries are fighting for market share. How do you get it? You make your currency cheaper.” Although this strategy seems like a good idea, it can create competition between countries who try to out-devalue one another, which can spur a global economic crisis .

On the flip side, foreign companies can create competitive sales by reducing their prices while not hurting the financial benefits they generate. Each dollar would then create more foreign currency for that particular company. Each dollar would then create more foreign currency. US exporters will have lower profits and less staff, which hurts U.S. sales and employment.

But back to the fun stuff: Will you be traveling abroad anytime soon?

Read also: As Black Travelers Venture Far & Wide, Social Media Documents Their Adventures

Justice Department Runs Into Problems As It Tries To Stop Bias In Auto Loan Practices

March 31st, 2015 - By Lauren R.D. Fox
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People of color have struggled with trying to receive home mortgages from banks. Now, the auto industry is another source of financial bias with Blacks and Hispanics who seek car loans. The New York Times reports, there are many auto companies who are charging higher rates for car loans to minorities, what officials call reverse-redlining. But the problem is hard to root out because auto dealers aren’t regulated the way banks are.

Prosecutors from the Justice Department and officials from the Consumer Financial Protection Bureau have begun investigating which auto dealerships are giving these inflated loans to people of color. In addition, it’s hard to determine who is a minority that’s been harmed by the practice. It’s an issue the Justice Department has run into in the case of Ally Financial. Dealers nor lenders have to collect information about a customer’s race or ethnicity.

Add to this, the issue with pricing. Dealers can mark things up, and in some cases do on a discriminatory basis, which then impacts the loan. Passing a law to stop this, however, could prove to be nearly impossible given the powerful auto-selling lobby.

Although it may seem as though this is a hopeless civil rights case, the Justice Department did resolve a case in North Carolina where Blacks were targeted by several dealerships. The dealerships attached the highest interest rate that the North Carolina state allows and even repossessed cars from owners even if they paid their payments on time.

Although the dealerships settled with the Justice Department, they claimed they were not in the wrong. Moving forward, they have agreed to cap their maximum interest rates for all borrowers and not target minorities. This case sounds so outrageous that it would be impossible for justice to exist without making these horrible dealerships pay. The problem is most of the cases outlined by the Times aren’t as cut and dried. It’s in these details that the government is running into problems.

Should Lottery Winners Remain Anonymous?

March 27th, 2015 - By Lauren R.D. Fox
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Most people dream of winning the lottery in order to travel, pay off debt or buy property. No matter the desire, many people don’t relish the invasion of privacy that comes with winning the financial prize. In states like North Carolina, The New York Times reports, the identities of winners become public record. But most recently, politicians believe this shouldn’t be.

Lottery officials believe anonymity would lower lottery revenue because other citizens wouldn’t know if the gambling games are legitimate. Alice Garland who serves as an executive director of North Carolina’s lottery believes, “It’s the best way we have of assuring our players that we offer honest and fair games, that anyone has a chance to win. If you don’t provide the winners’ names, then I think it becomes suspicious as to whether there really are winners or not.”

By using the identities of winners as a marketing tool, lottery executives put winners’ safety at risk. Attorney Andrew Stoltmann from Chicago said of the issue: “Lottery officials are just more than willing to sell these people out and throw them to the wolves by the publicizing of their faces and their names so they can sell more lottery tickets the next time around. I think it’s unconscionable that they do it, but there’s a real financial incentive.”

In another Southern state, Georgia proposes that winners should remain anonymous but only if they agree to donate 25 percent of their winnings back to the lottery for college scholarships. States like Arizona will only offer privacy for 90 days and New York’s legislation currently has a pending bill that would ban winners from being mandated by lottery executives to make public appearances.

Where do you stand in the debate? If you won the lotto, would you want community members to know?

Breaking The Code: Fighting In Public And What It Means If You’re Not Exclusive After A Year

March 6th, 2015 - By Lauren R.D. Fox
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Normally, when you're dating someone, two big issues have to be dealt with at some point: when you should make things official, and how you should handle conflict as a couple. In this week's episode of "Breaking The Code," MadameNoire editors and the fellas of "Guy Code" share their rules on these topics and you'll be surprised by their answers! Watch and weigh in!

Men Lie, Women Lie, Numbers Don’t: Survey Reveals Men Commit Financial Infidelity More Than Women

January 22nd, 2015 - By Lauren R.D. Fox
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Men Commit Financial Infidelity

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CreditCards.com surveyed 843 adults who are in relationships about how they manage money with their partners. The results were quite interesting: six percent of the participants have a secret bank account or credit card their partner does not know about. In comparison to the entire American population, NBC reports 7.2 million American commit this type of financial infidelity.

Although the terminology sounds over the top, Jezebel notes when one partner hides their extra financial assessments it makes them appear shady. The survey also concluded that one in five persons spent $500 or more on purchases their partners did not know about. Although an image of a woman sneaking into her house with bags of shoes or clothes may emerge in your mind, it is actually men who spend twice as much and fail to inform their partners of their purchases.

Paula Levy, a marriage and family therapist who is also a public accountant says that financial infidelity is common in most relationships. The reason this occurs is because both partners want to avoid conflict in their relationship and get the material things they desire. Levy also notes, although the phrase “financial infidelity” is intense, partners do not need to share every detail of their financial spending, which helps them feel independent from their partner.

The survey also noted two-thirds of married couples maintain joint accounts whereas others maintain the separate accounts they had prior to marriage. Whatever the financial setup, Levy does claim if a person lies to their partner about their financial habits, there will be a lack of trust in the relationship. The survey went onto highlight the most interesting financial claims made by couples in the survey:

“Younger people are more likely than older people to say they’ve had hidden accounts or large, secret purchases. A full one-quarter (25 percent) of respondents aged 18-29 say they have made purchases of $500 or more without telling their partners, compared with just 15 percent of those aged 65 and up. Seven percent of those aged 18-49 said they had secret accounts, compared with 4 percent aged 65-plus.

Is big spending acceptable? Many survey participants say they’re tolerant of their partner spending money without telling them. Thirty-one percent of men and 18 percent of women say they would have no problem with their partner spending $500 or more without letting them know.

At the other end of the spectrum, 31 percent of respondents said they think their partners should be able to spend only $100 or less without telling them.”

In order to avoid distrusting your partner’s financial spending habits, lawyer Dane Scalise and his wife created a list to avoid the drama:

1. Consider financial infidelity as serious as any other type, as data show the consequences can be equally grave.
2. Be aware of and honest about your financial health. Address problems early and seek help so they do not escalate.
3. Regularly discuss the household finances. Make financial decisions as a team and agree on an amount that each can spend “no questions asked” (as long as it fits into the monthly spending plan).
4. Create checks and balances by taking joint responsibility or taking turns paying the household bills.
5. Agree that all account access will be shared, even if the account is individual (bank, credit, investment and so on).