Gen Z feels financially stressed: How to get out of a rut & save more
Over 80% of Americans feel that financial stress is having a negative impact on their mental health, according to an Ally survey. Additionally, nearly half of Gen Z Americans experience weekly stress attributed to money matters while feeling less in control of their finances.
Ally Bank Head of Money Wellness Jack Howard comes on Wealth to have a conversation with Brad Smith on Gen Z's impulse buying habits, being more mindful about spending and saving, the extents of the strain from financial stress, and building up financial confidence while creating an emergency savings fund.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
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24 minutes ago
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‘A lesson in worst practices': Shocking audit reveals Chicago parking meters have made $2B for private company
Have you ever been strapped for cash? Perhaps you took a payday loan, sold a long-term asset or even made an early withdrawal from your 401(k). And chances are, you've later regretted it. This is the situation the City of Chicago finds itself in — and the cost may have been billions. Privatizing public infrastructure is a growing trend among cash-strapped cities that need fast revenue. Back during the 2008 financial crisis, Chicago was broke and needed to raise money. Rather than make the unpopular move of raising property taxes, then-mayor Richard M. Daley chose to privatize public assets. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'If we didn't have money for a long-term debt, you're talking about a serious economic crisis then for Chicago,' Daley said at the time, according to NBC 5 Chicago. So, Chicago City Council struck a deal to lease the city's 36,000 parking meters to investment consortium Chicago Parking Meters LLC, a group of global investors led by Morgan Stanley. The investors paid nearly $1.157 billion to receive the revenue from the meters for 75 years — and the city must reimburse them whenever the parking meters are taken offline, such as for festivals or construction. The deal was essentially rubber-stamped 40-5 in favor by the council, which had only a few days to review it before voting — turning out to be what the Better Government Association later called 'a lesson in 'worst practices.'' Soon after, a report issued by the then-inspector general found the city was paid at least $974 million less than it could have made from operating the parking meters itself over the term of the deal. While an analysis done by 32nd Ward Alderperson Scott Waguespack — who voted against the deal — found the deal could have been worth $5 to $10 billion, reported NBC 5. Now, a 2024 audit by accounting firm KPMG has found that, with another 58 years still left in the agreement, the private investors have already recouped their initial investment. In 2023, the meters generated a record $160.9 billion in income, bringing the total income from the start of the deal to $1.97 billion. 'It's just one of those deals that I would beg people never to replicate anywhere in the United States,' Waguespack told NBC 5. Still, many Americans can relate to the situation that faced Mayor Daley. When we're desperate for funds, we can make rash decisions that negatively affect our long-term financial health. Almost 4 in 10 (37%) U.S. adults would not be able to cover a $400 emergency expense with cash savings, according to the Economic Well-Being of US Households in 2024 report from the Federal Reserve Board of Governors. And while many of these people say they could cover the expense some other way, such as using a credit card, borrowing from family or friends or selling something, 13% would not be able to pay the expense by any means. About 58% of Americans are 'living paycheck to paycheck and experienced a cash emergency in the past 12 months,' according to The 2025 Cash Poor Report from peer-to-peer lending platform SoLo Funds. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it These 'cash-poor' Americans may not be who you think they are. Forty percent have a full-time job and one in seven cash-poor households earn more than $75,000 per year. The top unexpected expenses, according to the report, are auto repairs, medical bills and utility bills — common expenses that can happen to any of us. To cover these expenses, some may turn to short-term financing options that could end up costing them more money in the long term. For instance, buy now pay later (BNPL) services come with an average borrowing cost of 23%, according to The 2025 Cash Poor Report, which can increase substantially if the borrower incurs repeat late fees. Another option is a payday loan, which is one of the most expensive ways to borrow. The industry average cost of borrowing for payday loans is 35%, according to the report, but origination fees, late fees and processing fees can push this as high as 49% of the principal borrowed. Increased borrowing and missed payments can also affect your credit score, which in turn can limit your future ability to borrow. People might also look to sell long-term assets such as stocks, bonds or mutual funds, but this too can have long-term financial costs. If you're 30 years from retirement and sell $10,000 of an asset today that's earning 7% per year, then you'll have about $76,000 less when you retire due to the loss in compounding interest. Plus, research has shown that time out of the stock market can be costly — and missing the best days in the market can be devastating to your long-term returns. And, if you make an early withdrawal from a tax-deferred account such as a 401(k), you'll also pay a 10% tax penalty. To avoid high-cost borrowing in an emergency or cashing out long-term investments during a downturn, start by building an emergency fund that could cover unexpected expenses. A rule of thumb is to have three to six months' income in an accessible account, such as a high-yield savings account. While desperate times may call for desperate measures, it's worth consulting with a financial advisor (or a free counseling service) to discuss your options before getting saddled with debt or selling long-term assets. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. 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Yahoo
29 minutes ago
- Yahoo
A banana a day to keep the tariffs away? Howard Lutnick mocked during congressional hearing over plan to make more products in America
Commerce Secretary Howard Lutnick was ridiculed in the House of Representatives over his proposed solution if Donald Trump's tariffs hit banana imports. Lutnick, one of the loudest cheerleaders for Trump's aggressive trade strategy, was testifying before the House Appropriations Committee when he found himself up against Pennsylvania Democratic Rep. Madeleine Dean. The congresswoman put it to Lutnick that the Trump administration lacked a fundamental understanding of how a trade deficit works, pointing out that the last time the United States had a trade surplus was during the Great Depression of the 1930s, a return to which is 'a direction none of us wants to go,' she said. Dean rebuked the secretary over the chaotic implementation of Trump's tariff policy after the president was forced to row back his imposition of steep levies on 100 countries on 'Liberation Day' (April 2) when they spooked the stock markets, forcing him to swiftly introduce a 90-day pause to allow for dealmaking. 'We are in the midst of negotiations with dozens of countries,' Lutnick raced to reassure her. 'We could sign deals but they're only going to get better as we negotiate them.' Dean then pivoted to her true subject, the cost of living, saying that residents of her suburban Philadelphia district were facing $2,000 a year increases to their grocery bills as a result of inflation, noting that Walmart, for one, had already raised the price of bananas by eight percent. 'Mr Trump promised to bring down the cost of goods, day one. And what he has done through his trade deficit fixation and his tariff chaos has nakedly increased the cost of goods,' she said. Brandishing a banana, Dean asked the secretary: 'What's the tariff on bananas? Americans, by the way, love bananas. We buy billions of them a year. I love bananas. What's the tariff on bananas?' 'The tariff on bananas would be representative of the countries that produce them,' Lutnick answered, estimating the rate at 10 percent when pushed. 'But the cost is on the American consumer now and on the businesses with the confusion now,' she hit back. 'Mr Secretary, I believe you know better. I believe you recognize that a trade deficit is not something to fear. I believe you know that predictability, stability is essential for businesses. I wish you would show that truth to this administration.' When Dean yielded her time, Lutnick asked for permission to respond to her and said: 'There's no uncertainty if you build in America and you produce your product in America. There will be no tariff.' 'We can't produce bananas in America,' she responded, incredulously. 'The concept of building in America and paying no tariffs is very, very clear,' said Lutnick. 'We cannot build bananas in America,' Dean repeated. 'Fighting for imports is not the same,' the secretary tried again. 'We cannot build bananas in America,' the representative repeated. While it is true that the United States cannot 'build' its own bananas and most are imported from Central American nations like Guatemala, Ecuador and Costa Rica, southern states like California, Florida, Arizona, Louisiana and Texas have the necessary climate to grow them but currently only do so in small quantities. Hawaii also grows bananas, as do the American territories of Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands and the Northern Mariana Islands but, again, not currently on a scale sufficient to meet domestic demand.
Yahoo
36 minutes ago
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Ramsey Caller Inherited A Million Dollars And Kept It A Secret. Asks If He'd 'Be A Jerk' Not To Pay Off His Fiancée's Parents' Debt In China
A 26-year-old law student called into 'The Ramsey Show' with what started as a financial question and quickly became a conversation about honesty, trust and marriage readiness. The caller, Nathaniel, explained that he inherited about $1 million a few years ago. The money is held in a trust account that he controls, and it's managed by a financial adviser using a low-risk, principal-protection strategy. 'I treat it like a sacred gift from God,' he said. 'I feel like I have a responsibility to be a really excellent steward of it.' Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Invest where it hurts — and help millions heal:. He said he's getting married soon. His fiancée, a pianist, has no assets or liabilities and plans to be a stay-at-home mom. They've been together nearly four years. But she doesn't know about the inheritance—and neither do her parents, who are at the center of Nathaniel's dilemma. Her parents, retired and living in China, mortgaged their fully paid-off apartment to invest in a risky venture that failed. They are now roughly $25,000 in debt. Nathaniel said they haven't asked him for help, but he's been wondering if it would be wrong not to help them. 'Would I be a jerk not to?' he asked. 'Part of me doesn't really feel like using my money, soon to be our money, to help people who, in retirement, mortgaged their only safe asset for leverage in a single risky investment.' Trending: Dave Ramsey and co-host Jade Warshaw were transparent: the financial question comes second. 'You don't go another day promising to marry somebody and you're keeping secrets from them,' Ramsey said. 'Unhealthy, dude.' He urged Nathaniel to have a serious, honest conversation with his fiancée immediately. 'If you can't trust them, you don't need to be able to marry them,' Ramsey said. 'If you have to deceive someone because you're worried about their authenticity, we don't marry them.' Warshaw added that the issue reflects more on Nathaniel than his future in-laws. 'Honestly, that's more on his authenticity than hers,' she said. 'Nathaniel, you're more of the problem here than they are.'Ramsey acknowledged that $25,000 is a small amount relative to Nathaniel's wealth and paying it off would have 'absolutely no impact on your life.' But he warned against enabling repeated financial mistakes. 'You don't want to do that if they're going to turn around and do the same kind of stupid stuff again,' he said. 'I want to get under the hood and find out what's broken. Is this like a pattern? Have we learned our lesson?' In the end, Ramsey said the in-laws' debt is a secondary issue that the couple should discuss after Nathaniel fully discloses his financial situation. 'Nine out of 10, Nathaniel needs to come clean. One out of 10, pay off the 25K or don't,' Ramsey said. Read Next: Here's what Americans think you need to be considered 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Ramsey Caller Inherited A Million Dollars And Kept It A Secret. Asks If He'd 'Be A Jerk' Not To Pay Off His Fiancée's Parents' Debt In China originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
