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Bankrate's Chief Financial Analyst, Greg McBride, CFA spoke to Schwab Network about the state of the U.S. labor market and the expectations for the Fed's rate cut path. He talks about how higher rates are impacting the economy. https://lnkd.in/eeg_3Ey9

Curious on when you should tip and how much is an appropriate amount? Check out Lane Gillespie's new piece that'll break it down for you!

The latest JOLTS (Job Openings and Labor Turnover Survey) provides a perspective that underscores gradual cooling down over time, but is steady recently. According to the Labor Department, job openings in the U.S. increased to 8.1 million in May, up from April's revised total of 7.9 million. Openings peaked at more than 12 million in early 2022. The number of unemployed individuals stands at 6.6 million. That suggests 1.2 job openings for each unemployed person (see chart). Looking ahead to the June jobs report being released this Friday, hiring is expected to slow slightly. The consensus among economists is for a gain of 200,000 jobs to payrolls, a decline from May's robust addition of 272,000 jobs and the average monthly increase of 250,000 jobs so far this year. The anticipated June unemployment rate is 4.0%, having recently broken its streak below this level for over two years.

In honor of National Financial Freedom Day, Bankrate took a look at what Americans feel they would need to earn to feel financially comfortable. For the average American, they feel they would need to make $186,000 per year to feel financially comfortable according to a new Bankrate survey. That number jumps to $520,000 when asked how much they’d need to earn to feel rich/financially free. Additionally, 75% of Americans say they are not completely financially secure, up from 72% last year while just 25% say they are completely financially secure, down slightly from 28% last year. “Making more money is the secret to weathering inflation, but it’s also true that being a higher-income earner won’t automatically translate to being better at personal finance,” notes Bankrate’s Sarah Foster. “Someone with a traditional middle-class salary who always tries to save for the future, no matter how small, is destined for financial success more than an ultra-wealthy earner who lives and spends beyond his or her means.” What salary would you need to feel financially secure? For more information, visit: https://lnkd.in/edameQs9 

With rising temperatures have come rising costs — and a willingness to take on debt for the sake of summer fun. "Funflation" isn't slowing folks down this season. According to the Bankrate surveys I covered in April, more than 1 in 3 Americans (38 percent) said they would take on debt for travel, dining out or live entertainment in 2024: https://lnkd.in/gX4ugNfN And of the roughly half of Americans (53 percent) planning a vacation this summer, more than 1 in 3 (36 percent) plan to go into debt to pay for it: https://lnkd.in/gDfYXkQc Even if money is tight, we still want to make memories with friends and family. But there are ways to find fun this summer without going into debt. Building a budget, saving for a sinking fund and using credit card rewards could help you go further with less. And by the way: sprinklers, hikes, libraries, playgrounds, lemonade stands, running clubs, public lakes and beaches, campfires and game nights are free! (ish.)

Who's better for the economy: President Joe Biden or former President Donald Trump? The past might be a guide. For the first time since Grover Cleveland ran for a nonconsecutive term in 1892, voters have records of how the two leading candidates managed the world’s largest financial system. To help Americans compare each president’s economic report card ahead of Biden and Trump's first head-to-head, my latest for Bankrate looks at data from Trump and Biden’s time in office on a sampling of economic measures, from hiring and unemployment, to stocks, growth, inflation and federal spending. I indexed those gauges to the start of each candidate's inauguration (January 2017 for Trump and January 2021 for Biden). Then, I took data over an equal timeframe. Since we only have data going up to May 2024 for Biden's term, I stopped my analysis in May 2020 for Trump's term. The findings: 📈 On inflation: Prices rose four times faster during Biden's term than Trump's. 📊 On the job market: The U.S. economy has created 15.6 million jobs. That compares with job losses totaling 12.6 million for Trump. 💵 Wages have boomed faster under Biden but lost more ground to inflation than they did under Trump. 💰 The S&P 500 stock index has risen 42.1% since Biden took office, compared with a 33.6% increase over the same time period for Trump Both presidents' economic outcomes greatly depend on who was in the White House during the economy’s plunge (Trump) and red-hot bounce back (Biden). “In a world where finger-pointing has become a contact sport, the quick answer is that virtually every stakeholder in the economy is responsible, to some degree, for inflation," as Mark Hamrick told me. Meanwhile, the economy was simply adding back the jobs that it lost to the pandemic for the first year and a half of Biden's presidency, helping Biden's score in the category. But even so, hiring boomed faster than its historic average and unemployment fell to even lower levels under the current chief executive. My question: Should presidents take the credit (or blame) for their economies, when it's often driven by broader, macro-level forces (cough: Federal Reserve)? Let me know what you think, and read our analysis:

What is the cost of motherhood? The motherhood penalty shows it may be higher than you think. A new Bankrate study found that mothers could potentially miss out on half a million in career earnings based on 2023 wage gap data. This is compared to fathers who actually appear to experience a wage bonus over time after having children. In 2023, Mothers with children under 18 earned a median salary of $55,276, while fathers with children under 18 earned $72,280. This was the largest wage gap of all the groups included in our analysis. “The gender pay gap and motherhood penalty are systemic issues that affect women’s finances. While individuals can’t resolve these challenges alone, women can navigate them by focusing on what they can control,” says Bankrate’s Alex Gailey. She notes establishing a support system, tracking spending, automating savings and advocating for better pay and benefits as ways to help. For more information, please visit: https://lnkd.in/eCwA8fec

The news out of the New York Times about soaring vet bills probably isn't much of a surprise for most pet owners. 🐶 😺 Earlier this year, I reported for Bankrate that pet parents spent an average of $4,800 on their furry friends in 2023, according to data from MetLife. One-quarter of that was on vet visits alone. The NYT reported that pet owners are going into debt to afford vet bills, and many don't have pet insurance. If you've ever paid a huge, unexpected vet bill, you know how suddenly those costs can sneak up on you. 😰 That's why pet insurance can be such a lifesaver. I have pet insurance myself for my dog and cat, and not only is it a pretty low monthly premium (I've paid between $30-$50 a month for up to three pets), it can really help you in the event of sudden, expensive medical costs. There's one caveat, though. Pet insurance typically reimburses you, it won't pay your vet bills. So don't forget to also prioritize growing your emergency savings! (This wouldn't be one of my articles if I didn't emphasize that you need👏 to 👏 prioritize 👏 emergency 👏 savings! 👏 ) #pets #petparent #vetbills #savings

Time is quickly running out on potential federal student loan relief... Are you leaving forgiveness on the table? If you can't confidently answer this question, I encourage you to read more! The Biden administration announced earlier in the week that millions of borrowers will have their loans placed on a temporary forbearance for the month of July as payment adjustments to SAVE get rolled out. According to the administration, these borrowers could see their monthly payments under SAVE get slashed in half. Starting July 1, payments will total 5 percent of the individuals discretionary income, rather than 10 percent. Not sure if you qualify? Here's what to know: - Borrowers with undergraduate loans under Saving on A Valuable Education (SAVE) Plan will not have to make their monthly payments from July 1- July 31. -Eligible borrowers have been made known through an email earlier than this week, but some may see updated billing payments comer July. - Impacted individuals will not need to make up for the payments in August, interest will not accrue and borrowers will still get IDR or PSLF credit for the month. However, borrowers need to act fast to be eligible for the one-time payment adjustment, as the June 30 consolidation deadline quickly approaches. Those who apply for federal debt consolidation past the June deadline can still qualify for SAVE, but they'll miss out on the opportunity to qualify for forgiveness sooner through the adjustment. Do you know if you qualify for SAVE? Let me know in the comments and read my latest student loans news update for Bankrate here: https://lnkd.in/emCA3zkT #studentloanforgiveness #studentloans #personalfinance

🏡💔 Sorry, millennials: Mortgage rates aren’t dropping anytime soon. Bankrate analyst Jeff Ostrowski joined Cheddar to discuss the "hidden costs" of homeownership, and offers some tips on how to budget those sneaky expenses that come along with owning a home.