
36 Smart Purchases That'll Help You Transform Your Teeny Tiny Apartment
Shopping
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These may not grow your space by actual feet, but it'll feel like it.
1. A flat outlet plug that can be placed behind furniture so you can utilize every single outlet in your home. Do you only have a single outlet in your living room and it happens to be on the only wall that fits your couch? Well, that's no longer a problem!!
Promising review: "So first off, I have to say this is a genius idea! I highly recommend this product because it completely solves the issue of wasting two perfectly usable outlets behind cabinets or shelves!! Not to mention, each extension cord has an extra three plugs, so you literally get triple the number of plugs from one outlet. The only slight drawback I would say is the high price. But honestly, it's so worth it. I bought two sets for the two outlets that have been hidden away behind two bookshelves. I spent the weekend installing them, and I now have 12 additional plugs that I can use!! Huge difference!" — Kevin
Get it from Amazon for $23.95+ (available in 12 different lengths/styles).
2. A circular lift-top table if your living room also happens to be your home office and dining room. Plus, the hidden storage keeps your small space nice and clutter free which happens to trick our lil' lizard brains into thinking the room is bigger than it is.
Promising review: "I wanted a lift-top table that was both round (so my big dog can walk around it without getting stuck) and small enough for my space and this was really the only one I could find. I'm very happy with it. My husband and I lift it up and eat dinner while watching Netflix once or twice a week. It isn't soft close, but it also won't pinch your fingers. Just hold onto it when closing it, or it will slam down." — Bbqsauce
Get it from Amazon for $91.02+ (available in five finishes).
3. Or a sofa tray if you literally don't have room for a coffee table!
Amazon
Promising review: "I don't have and prefer not to use a coffee or end table. This is the perfect extra touch to have something where I can put down my drink or plate of snacks." — Yael Neubauer
Get it from Amazon for $27.89+ (available in five finishes).
4. Some Wonder Hangers — point blank, period. They'll ~triple~ your closet space so you can snatch every trending piece you come across on TikTok.
www.amazon.com
Check out how they work on TikTok here! And PS: Wonder Hanger is a small biz!
Promising review:"Been trying to organize my closet with so many different ideas. Decided to order these and they are worth every penny! Most organizers don't accommodate thick hangers and these do, so I am one happy camper!" — Met
Get a 10-pack from Amazon for $13.99+ (available in three colors and packs of 10 or 24).
5. A foldable nonslip sink cover if you have zeroooo vanity space to work with. This lil' tray gives you a sturdy surface without blocking your faucet, so if you're doing makeup and need to wet your Beautyblender, you don't have to rearrange everything.
PS: Sink Topper is a small biz!
Promising reviews: "Worth every penny! I was about to buy a brand new vanity! This product saved me over $1,000 bucks!" — Barbara Mulvey
"Came across this on IG, and immediately went looking for one. It's very well designed in terms of stability, so as long as you obviously put your heavier items along the perimeter, it's super sturdy. I'm moving, and there is no sink space at the new place, so this is simply a godsend (especially with the hot flat iron issue and not wanting to burn the sink). The faucet gap is perfect, so if anyone needs to use the sink while you're getting ready, you don't have to move everything. It's just a really solid product, and I'm glad I came across it." — J Kit
Get it from Amazon for $23.99+ (available in two sizes and three colors).
6. A set of adjustable mug organizers so you can confidently open your cupboard knowing an avalanche of mugs isn't about to fall on you.
Elypro — the creator of this nifty gadget — is a small biz!
Promising review: "I came across these in an Amazon review on TikTok and I just had to have them for my mugs. I have a lot of mugs, but no space. I didn't want a hanging mechanism for the mugs I just needed a way to stack them. This is such a great product to help stack mugs. They're easily adjustable for any size mug. They don't topple over, they're very sturdy. One of the best space savers I have in the kitchen!" — Magdalynn Tibbetts
Get a set of six (to organize 12 mugs) from Amazon for $24.99 (available in three colors).
7. A magnetic stove shelf on which you can stack your go-to spices, oils, and kitschy salt and pepper shakers. It's also a convenient place to dry out a turkey wishbone if your family is into that tradition.
Amazon
StoveShelf is a US-based small business that specializes in stove shelves for various sizes of stoves.
Check out a Tiktok of the StoveShelf in action.
Promising review:"I had no problems with installation. It's secure and doesn't move, and I was genuinely surprised at how much counter space I freed up. Now, it makes more intuitive sense to reach in front of me for my frequently grabbed cooking items on the StoveShelf (EVOO, S&P, etc.) instead of reaching off to the side to wherever I set it down last." — Online Shopper
Get it from Amazon for $34.99+ (available in three sizes and in three finishes).
8. A self-expanding shower curtain that gives you way more room, prevents dreaded curtain cling, and doesn't require a curved rod! It's so easy to set up, you don't even need rings.
Amazon
Space is a small business that's passionate about eliminating curtain cling and giving people more shower space! Their design is also machine-washable, so you don't have to replace it like a run-of-the-mill liner.
Promising review: "Wow! This is exactly what I was looking for! I have a tiny bathroom in an old apartment building, so I have an untreated window that needs to be covered with a shower curtain inside my shower. Every time I'd shower, I'd be attacked by curtains from both sides. That is until I purchased this curtain. It gives so much more room in the shower, like a curved shower rod, but without all that hardware and work associated with it. It's weighted enough so it doesn't move, either. I'm no longer attacked by my shower curtains. 100% would purchase again." — Brittany Hopkins
Get it from Amazon for $44.99+ (available in six colors).
9. A set of two cabinet shelf organizers so you can elevate your mug collection and make room for more because look, you *will* be buying at least one next time you go to Target.
Amazon
Promising review:"I absolutely LOVE my new organizational wooden stands. They arrived today, and as soon as I easily put them together, I was surprised at how great they looked. The texture is better than expected, very sturdy, looks great on my kitchen counter, and turned my messy counter into a nice display of items I use daily. I'm so in love with these I'm going to buy more for other areas if the house and my adult kids think they're great, so thinking about getting them as stocking stuffers!!!!" — Kristen
Get it from Amazon for $22.99+ (available in six finishes and two sizes).
10. A hanging laundry hamper because let's be real, when you hop in the shower, you throw your clothes in a pile on the bathroom floor and they stay there until you know you have company coming over lol.
Promising review:"Very convenient. I'd been looking for new laundry baskets to keep in my bathroom so my family didn't just throw clothes into a pile on the floor. There isn't a lot of floor space in there, so I was looking for a tall, narrow basket and found these. They are great. I put one on the back of the door, and one hanging from a towel rack and labeled one for light colors and, without even asking, my family has been putting their clothes in the correct bin, and I just need to unzip and let the clothes fall into the laundry basket, and they are ready to go into the wash. I really like them." — D. Jelte
Get it from Amazon for $11.99+ (available in three colors and packs of two).
11. A baseball hat organizer that'll keep your caps in one central location without taking up much space at all. Even better, the DomeDock will keep them in tip-top shape as you won't accidentally step on them or throw your platform boots on top of them the next time you quickly toss stuff in your closet.
www.amazon.com, Amazon
PS: DomeDock is a small biz!
Promising review: "This is the perfect solution to keep your hats organized. Each organizer holds about a dozen hats. The hats stay put and don't fall over. As long as you tuck them properly, then they stay put and won't get messed up. Definitely worth buying." — FarraB
Get it from Amazon for $19.99+ (available in white or black and individually or as a two-pack).
12. A macramé fruit hammock so your bananas, apples, and oranges can enjoy their last days on Earth in comfort. Little do they know they're about to be devoured. 😈
Knapps Knots / Etsy
KnappsKnots is a San Diego–based small business from Anastasia Knapp.
Promising reviews:"Absolutely loved it! Perfect if you have little counter space." — Jessi
"Love it. Might get another for bread and buns. The clearance between our counter and upper cabinets is weirdly short — can't fit most countertop items — so this was the perfect solution" — pogtotes
Get it from KnappsKnots on Etsy for $28.90+ (available in two sizes and 11 colors).
13. An expandable, two-tier organizer because every time you put a cleaning product back in the cabinet under your kitchen sink, you have approx. one millisecond to slam the door shut before everything tumbles out. With this, you can open the door any dang time you want just to admire how well organized you are.
www.amazon.com
The shelving unit is suitable for most cabinets as you can adjust the height to four different levels (2, 5, 9, and 13 inches tall) and expand the rail anywhere between 15–25 inches. Since the dimensions aren't one-size-fits-all, it also comes with three large panels and four small panels, so you can adjust the shelves.
Promising review: "I held back on buying an under-sink shelf because of the price, but this is so worth it because of how adjustable it is! This thing has made that mini-cave of an under-sink area way more organized, with stuff easier to get to or move out of the way. The two widths of shelf pieces are a smart touch; they accommodate a wide variety of drains under kitchen sinks. I didn't use all the shelf pieces because of the extra-wide and deep drain in my apartment. I think the only thing that would make this perfect for me is a cosmetic thing — a chrome version or a matte black. But since it's under the sink, the color is fine and close enough." — Kevin M.
Get it from Amazon for $23.87 (available in three finishes).
14. A combination velvet storage ottoman/table ideal for those with little to no space. Use it as a seat if you have extra guests or if it's just you, flip over the lid and you'll find a wooden tray perfect for balancing your dinner.
Amazon
My colleague Emma Lord has one and here's what she has to say:
" I recently got one of these for my new apartment to stash my candles and ~candle accessories~ in and it's pretty much become my favorite piece of furniture?? I use it to prop up my feet during work hours and sometimes if I want to eat on my couch I'll use it as a tray. It's also sturdy enough to sit on, if I ever wanted to have guests over and needed an extra chair. It was RIDICULOUSLY easy to set up — I had it done in less than 10 minutes, and probably didn't even need the directions. It also just looks so darn cute (and comes in so many colors that I'm tempted to buy another!)."
Promising review: "I love this versatile stool! It's stylish, well-made, and extremely easy to assemble. When used for seating, it's comfortable and sturdy; when used as an end table it adds such a fun design element for any space. The storage is also a bonus if you are living in small space like I am. I highly recommend!" — Melissa
Get it from Amazon for $34.99+ (available in two sizes and five colors).
15. A pair of rustproof shower caddy bathroom shelves if buying new body wash is your favorite form of self-care and you're quickly running out of room for your treasures.
Promising review: "If you are looking for some shower space and you don't want to tear out your shower to build in the nitches...grab these babies. They stick great, and hold a ton of stuff! It took our shower from looking cluttered and always having stuff fall underfoot to looking put together and having everything be right where you need it to get to it. I use liter bottles of shampoo and conditioner, and these babies hold both in one basket. Pick up a set. You won't be disappointed. Also, if you have two showers and only need one basket in each, you can split them and get storage in both showers that match perfectly!!" — Chris
Get it from Amazon for $27.99 (available in four finishes).
16. A hidden coffee pod tray that mounts right under your cabinet if you're the type of minimalist who likes to keep nothing (and I mean NOTHING) on your counters.
www.amazon.com, www.amazon.com
Promising review: "This space-saver K-Cup storage rack is wonderful! It is attractive and keeps my counter clutter-free. It is lightweight but very sturdy. I would highly recommend this for anyone wanting to gain valuable counter space." — christine h
Get it from Amazon for $19.99.
17. Some hanging vacuum bags so your winter coats don't take up your entire closet.
Promising review:"Bought these storage bags two weeks ago to pack my winter clothes away for summer, and they did the job perfectly. They are large and sturdy. I like the five-hook design. I can store five women's jackets or four big men's jackets in ONE bag. The long bags also fit my dresses. The biggest reason I bought these bags is that I do not need to fold my seasonal clothes; just hang, zip, vacuum, done! Super convenient. Extremely happy with these space bags. I will definitely order more!" — Jia Yan
Get a pack of four from Amazon for $ 27.99 + (available in various colors and pack sizes).
18. A cutlery organizer that was smartly designed to save a buttload of space. Sick of fishing around a jam-packed drawer in the search for your favorite fork? Give it a cozy, reliable place to call home.
Here's what BuzzFeeder Elizabeth Lilly has to say:
" I have VERY narrow kitchen drawers in my NYC one-bedroom apartment kitchen and buying one of these organizers has transformed my cutlery drawer. I'm able to safely reach in and grab whatever I need (like a manual can opener for tuna salad or a mini whisk for a hot chocolate) without having to sift tools around."
Promising review: "Perfect for those small kitchen drawers. My drawer space is limited, and my silverware drawer is literally so small. I've tried all types of organizers, but this one takes the cake. Easy to use and easy to clean. Very stable and doesn't slide around when you open the drawer. Very lightweight and sleek appearance. Very nice grey color that matches my kitchen decor. Love this." — Amazon customer
Get it from Amazon for $9.59.
19. A shoe cabinet narrow enough to fit in tight mudrooms, entry halls, and foyers. At minimum, it holds six pairs of sneakers, slip-ons, or sandals — that way, they're not strewn all over the floor ripe for tripping.
www.amazon.com
Promising review: "Love this little shoe storage system. Fits 6+ pairs of shoes, and with 6 inches of depth, it fits perfectly in tight spaces or behind doors. It really helped organize and clean up the front landing space of my townhouse. Came packaged fully assembled and included hardware. I ended up getting different drywall anchors from The Home Depot because I didn't like the ones that came with the cabinet, but otherwise, no issues." — Lauren "LaLa" Peacock
Get it from Amazon for $139.95+ (available in two sizes).
20. A large over-the-sink rack if you could use some extra room for dish soap, sponges, and all of the cups you finally collected from various household surfaces.
Amazon
Promising review: "I don't have much room in my kitchen, and after seeing my friend have a similar one, I had to have it! It has saved so much counter space and can fit a lot of clean dishes!" — Victoria
Get it from Amazon for $32.99+ (available in four sizes).
21. A set of drawer organizers that can take your dresser from the chaos that is a TJ Maxx sale section to the enviable order that is The Container Store. 😍
www.amazon.com
The set of four dividers can fit scarves, ties, underwear, bras, and socks, as seen above.
Promising review:"No matter how neatly I fold my bras and underwear, they always seem to become a big jumble in the drawer. These organizers are perfect for keeping everything in place, and you won't forget about those items you own that end up buried at the back." — M. Hanson
Get it from Amazon for $13.97+ (available in seven colors).
22. An above-the-outlet shelf where you can tuck away electric toothbrushes, razors, soap, and whatever else won't fit around your sink.
To install the shelf, simply remove your outlet's face plate, place the shelf, and then screw the plate back on with the included hardware. It should only take a few minutes at most.
Promising review: "This is a welcome addition for tiny bathrooms. Easy to install, a convenient and safe perch for electronics that may be charging. Love this!" — Cynthia Rrrr
Get it from Amazon for $13.99+ (available in packs of one, two, or four and four colors).
23. A three-in-one convertible chair guaranteed to unfold at the *exact* angle you prefer when watching TV. Use it as a regular chair, a chaise, or bed when you have guests.
www.amazon.com, www.amazon.com
Promising review: "The thing with chair-beds is that beds need to be firm to be comfortable, but chairs need to be soft to be comfortable. This chair is firm, but not hard. It's nice and wide — reminds me of a chair-and-a-half. I like it a lot. I slept in it three nights and it was very comfortable. I have it in my guest bedroom with a twin bed so two people can use the room or just one with a chair. I kind of want another for my living room because you can also use it as a chaise lounge! Three uses is fantastic!" — Daisy
Get it from Amazon for $269.99+ (available in 13 colors).
24. A modern pedestal table with *just* enough room for your daily mocha latte. It really is the perfect size because once you're finished, you won't have room to let cups pile up, you'll have to take care of them right away.
Amazon
Promising review: "This is perfect for a small space. Took just a moment to put together. Glass top and bottom gives a 'it's there, but not there' look. I'm very happy." — Pat R.
Get it from Amazon for $56.99 (available in 11 finishes).
25. A height-adjustable solid oak table you can use as a coffee table *and* a dinner table. All it takes is a quick flick of the legs to transform it!!
Steelwood / Etsy
Steelwood is a Ukrainian family-run small biz that's been operating since 1950. The shop dries and prepares all of its own hardwood and they're devoted to sustainability, too. Every week, they plant a tree!
Promising review: "Absolutely love my new table. It will spend most time as a coffee table but is perfect for when I need a dining table as I don't have room for both. I would highly recommend. Thank you, Denis for keeping me informed about the delivery and for making such an awesome table." — Etsy Reviewer
Get it from Steelwood for $410+ (originally $500+; available in six diameters and five finishes).
26. A combined floor lamp and end table if you're 1.) Trying to save space or 2.) Just absolutely enamored (like any sensible adult) with multitasking pieces.
www.amazon.com, www.amazon.com
Promising review:"I was looking for a lamp of this style and happened to come across this one. It had no reviews so I was suspicious, but for the price I took the chance. Best gamble ever! This lamp is so beautiful and the quality is amazing. The marble base is like real, sturdy marble. Gold finishing looks so expensive. Table is not flimsy at all. I absolutely love it and can't believe I was able to find this for such a deal." — Sarah Diaz
Get it from Amazon for $78.09+ (available in three lampshade colors).
27. A broom/tool organizer because no matter how carefully you tuck your Swiffer/broom/stick vacuum in that gap between your fridge and wall, they never fail to fall over and scare the bejeezus out of you.
The organizer has four slots and four hooks, which can be used to hold all sorts of kitchen, bathroom, garage, and garden tools. Installation takes about five minutes, and all it includes is drilling two holes for screws and then mounting the unit.
Promising review: "I purchased this to organize my brooms, mops, etc. They were always sitting beside one of my tall kitchen cabinets and looked like a total mess. This allowed me to make it look more organized and it turned out perfect. Couldn't be any happier with it." — DazzBoomer
Get it from Amazon for $8.49+ (available in two colors).
28. A bamboo burner cover ready to transform any teensy-tiny kitchen and give you 20 to 30 more inches of counter space! That might not sound like a whole lot, but my fellow NYC dwellers know it's nothing to sneeze at.
BuzzFeeder Jennifer Tonti credits this burner cover for helping her cook with ease:
"OK so I just bought this for my own tiny apartment (pictured above) and OMG you guys. Life = changed. Food = chopped. Counter space = doubled. I mean the math is all there."
Promising review:"This is so perfect for extra space. It covers the top of my apartment-sized stove so I can then use my stove space for my Instant Pot and food prep. The best space-saving and cosmetic thing I have ever gotten for this tiny apartment." — Talyn Amber Skye
Get it from Amazon for $27.95+ (available in seven sizes).
29. A compact double-chaise sectional if you're working with limited space but don't want to skimp on leg room. Plus, the ottomans lift up to reveal hidden storage!
www.amazon.com, Amazon
Promising review: "A while ago, I purchased a 7-piece sectional modular sofa from Belffin in gray velvet. I couldn't be happier: its styling is minimalist, its look is modern and sleek, and its comfort and functionality are high quality. And you can align these any way you want. Moreover, it's smaller and more dainty, so it fits perfectly in our family room. I've just now added two ottomans to my set. So, now I have a family room that comfortably and elegantly accommodates up to 9 people. Like the other sofa sections, these square-sized Ottomans come with impressive storage spaces under the seat cushions (approximately 21.5 x 21.5 x 6.5 inches) that we use to store board games and puzzles. Very ingenious. If you prefer, they can be linked together with a nifty connector accessory that is easy to install or remove, depending on the alignment you want for your sofa or ottoman sections." — Juan Lulli
Get it from Amazon for $999.99 (available in four colors).
30. A C-shaped table you can wheel around wherever is convenient so you don't have to dedicate any specific floor space to your WFH setup.
Amazon
I've had this table for about eight months, and I love it! I live in a really compact apartment and didn't want to take up living room floors pace with a bulky or fixed coffee table. I love this lil' guy cause I can wheel it up to the couch and use it as a desk, position it over my ottoman when I want it completely pushed out of the way, and even push it around my living room when I'm cleaning and need a temporary surface to store stuff on.
Promising review: "This table is good-looking…sturdy material, good rolling castors. Simple to put together, just screw-on the castors. We roll it from chair to couch depending on our needs." — Theresa
Get it from Amazon for $143.89.
31. A floating bedside drawer that gives you a spot to put a drink (cause the last time you put it on the floor, you promptly kicked it over...) and a drawer where you can store your Kindle/TV remote/other things you frequently reach for.
Valiai Design / Etsy
Valiai Design is a small, family–run business that specializes in Scandinavian-style furniture.
Get it from Valiai Design on Etsy for $80.74+ (originally $107.66+; available in two finishes and single or double drawers).
32. An easel-style TV stand if your style is *so* minimalist that you'd actually prefer to keep your living room media-console-less.
Amazon
It's suitable for TVs 45–65 inches.
Promising review: "I was skeptical at first how sturdy this TV stand would be. To my disbelief, it is sturdy and super functional! It frees up a lot of space in my bedroom, and I love how it can be placed in a corner for an ideal viewing experience. Instructions were easy to understand, and I got the whole thing mounted and set up in less than 20 minutes. All the components are high quality, not cheap plastic. I have no doubt this TV stand will last for years. Another great thing about this stand is that it's easy to pick up the TV and move it around. I recommend the safety mount if you have kids or pets for added peace of mind. If you want an affordable TV stand that adds a nice design element, I would recommend you purchase this." — Austin738
Get it from Amazon for $89.99+ (available in three finishes).
33. A wall-mounted pot hanger where you can suspend your entire collection in plain view. If cabinet space is scarce, this is an easy way to add extra storage.
www.amazon.com
The wall-mounted unit includes a six-track wooden shelf (so you can place lids vertically) and six swiveling hooks for hanging pots and pans. Once securely attached to the wall, the organizer can hold up to 30 pounds.
Promising review: "Easily my favorite kitchen item. I have a tiny kitchen that only has two cabinets for storage, so my oven was my storage for pots and pans until I bought this. Now, I don't have to pull eight items out of my oven just to preheat and bake something. Installation was easy, took about 10 minutes. It's easy to pull the hooks up and move them when you decide you want them somewhere else, and you can store lids or stock pots or other items on the shelf above the pots. Love, love, love this pot rack." — Patricia R.
Get it from Amazon for $71.34.
34. A set of versatile magnetic hooks because shoving your oven mitts in your tiniest kitchen drawer has resulted in many fights to free them. Instead, just hang them up the side of your fridge!
www.amazon.com, www.amazon.com
Promising review: "These hooks are amazing! I have very little kitchen space and don't want to drill a bunch of holes in a rented apartment. These hooks are great for the fridge, microwave, and stove hood. I especially like that they are deep enough that I can face my measuring cups and spoons outward so I can see the sizes at a glance. You won't be disappointed in these hooks. Highly recommend." — BAJ
Get them from Amazon for $4.39+ (available in multiple pack sizes).
35. A wall-mounted table you can use as a desk, for extra counter space in your kitchen, as a place to fold laundry, or as a dinner table. And once your done, it folds down taking up next to no space so you don't have to shimmy around it all awkwardly.
Amazon
Promising review: "This is a great table for our laundry room! When we moved into our condo, the washer and dryer that came with it were slanted on top and couldn't be used for folding clothes. This table fit in perfectly and is well made and can hold substantial weight if needed. I could see it used as a portable desk somewhere also." — Anne C.
Get it from Amazon for $139.99+ (available in four sizes and two finishes).
36. An acrylic bookshelf that basically disappears into your space only to show off whatever you put on it.
Amazon
Promising review: "This slim, acrylic ladder shelf was perfect for an awkward, narrow little space next to my closet. I was looking for more shelving to display a few more items, and this was perfect. I love that it's transparent — it looks like my items are floating in the air and doesn't take away from the aesthetic of my closet. Also, it was super easy to assemble, and this is coming from someone who hates assembly of any kind and usually hires a Task Rabbit to put together furniture. I'll probably order another one soon." — WebGirl79
Get it from Amazon for $99.99+ (available in three sizes).
Reviews in this post have been edited for length and/or clarity.

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And while some humans may be self-interested when saying they do a better job than AI, even companies behind popular chatbots advise caution. Large language models, like Gemini, can "hallucinate" and present inaccurate information as factual, according to Google. USA TODAY asked five popular chatbots common personal finance questions. Here's what they said and what financial experts thought of their responses: AI's advice on retirement savings USA TODAY asked ChatGPT, Claude, Copilot, Gemini, and Grok three personal finance questions in the same order – starting with one of the most common: How much money do I need to retire? Their answers were similar but not identical. In seconds, the chatbots generated somewhat lengthy responses, usually formatted in bullet points, giving examples and general advice with caveats. Grok was the only model to give a specific number in its final answer – about $1 million. But it, alongside ChatGPT and Copilot, also asked the user to provide more information. Gemini recommended using a retirement calculator and Claude suggested meeting with a financial planner. All pointed to the 4% rule — a withdrawal strategy that says retirees can safely withdraw 4% of their savings during the year they retire and then adjust for inflation each subsequent year. However, the rule is more than 30 years old and its creator said it was outdated in 2022. 'There is not one number for everybody. If the chatbot tries to answer this question without asking for information, that's useless,' said Annamaria Lusardi, who heads Stanford's Initiative for Financial Decision-Making. 'The 4% rule of thumb is completely outdated... If you follow it, you have a very high probability of running out.' More: The right financial adviser can help you navigate a shaky economy. We rank the top firms. AI's advice on credit scores The chatbots' responses to the question 'How do I improve my credit score?' were nearly identical. They suggested stategies like paying bills on time, keeping credit utilization low, and maintaining a healthy mix of credit. 'This is a much easier question for ChatGPT to answer correctly because there is all of this information, for example, on the FICO score website,' Lusardi said. 'If you compare these two questions, this is really a type of situation where you can have rules for everyone.' Greg Clement is the CEO and Founder of Freedomology, a technology and coaching company that launched its own chatbot dedicated to helping people with their finances, health, and relationships. He worked as a financial planner for eight years and thinks popular AI models can be useful when people have financial questions but that their answers are still 'very vague and generic.' 'It's almost as if you're talking to 100 financial planners and you ask the same question to 100 people and you try to consolidate all of their answers into one summary,' Clement said. Between AI's documented bias and inabilty to understand things on a human level, Tori Dunlap, a money expert who founded Her First 100k, is skeptical of people relying on the technology. 'It's there as your digital robotic personal assistant. It's not meant to challenge you or push back, or help you think differently. That's something a coach or expert can you help you do,' Dunlap said. 'I would also say though, if you're going to go from no financial advice to ChatGPT, I will take ChatGPT every time.' What happens when you give AI specific numbers? Using the median household income and down payment in Illinois, USA TODAY asked the chatbots what home price a couple could afford in that state. Before giving a number, most asked the user to consider factors including their debt-to-income ratio, private mortgage insurance, and property taxes. But without asking for more information, each gave a different range. ChatGPT and Gemini were the most optimistic, suggesting $300,000 to $320,000 and $275,00 to $325,000, respectively. Claude said $245,000 to $270,000 and Copilot said $225,000 to $250,000. Grok gave the lowest range from $200,000 to $240,000. 'Personal finance is about our life. I don't know that I would leave it to just artificial intelligence without a careful check and being aware that different ones will give me different results,' Lusardi said. 'Some of these suggestions can be very simple and potentially not very useful.' Dunlap said the chatbots' variety of answers is the result of them not having enough information. If someone asked her this question, she said she'd follow up by asking about their credit score, their ideal mortgage payment, and interest rates. 'But before we even do that, my question is: Do you actually want to be a homeowner or do you just feel like you need to in order to be successful?' she said. 'By definition, you're talking to a robot. You're not talking to somebody who understands real complex human emotion.' After all, if someone asks AI this question, they're talking to a chatbot who has never experienced homeownership. 'If a young couple in the Freedomology community would ask the same question, they'd probably get answers from people that have owned a house for 10 or 20 years,' Clement said. 'How do you replace that? I don't think you can.' What do AI companies recommend? In USA TODAY's chats with the AI models, several included disclaimers that they were not financial advisers, and AI companies have some safeguards in place to fact check their responses. Google's double-check feature highlights any information that is contradicted online. The company's help center notes that people should not rely on Gemini for financial advice. A spokesperson for Anthropic, the company behind Claude, said they are encouraged to see people using the model as a financial literacy tool to demystify topics like compound interest and credit scores. However, they said while Claude can help people become more informed, it should not replace licensed professionals for personalized financial decisions. They recommend using Claude to learn and prepare smarter questions, but to rely on certified professionals who can give personalized advice when it comes to actual investment decisions and retirement strategies. 'The most successful approach we see is people using Claude to level up their financial literacy, then taking that knowledge into real-world decisions,' the Anthropic spokesperson said in a statement to USA TODAY. 'They understand the terminology, recognize better opportunities, and feel more confident, whether they're negotiating a car loan, choosing between job offers, or preparing for retirement planning meetings. That's where AI genuinely helps — making financial knowledge accessible to everyone.' In another statement to USA TODAY, a spokesperson for Microsoft said Copilot's Deep Research mode can help people make well-informed choices in areas that require careful evaluation, including financial decisions. 'As we look ahead, we're focused on making Copilot an even better AI companion; one that's more personal and feels natural being used in everyday life,' the spokesperson said. 'AI can still make mistakes, so we always recommend people check sources and reach out to a financial adviser if needed.' While Allen said she doesn't take everything AI says at face value, she credits it as a reason she went from not knowing how much debt she had, to paying a majority of it off. 'That's what changed about this whole process,' Allen said. 'I'm not afraid. I have ChatGPT on my side.' OpenAI and xAI did not respond to USA TODAY's requests for comment. Reach Rachel Barber at rbarber@ and follow her on X @rachelbarber_
Yahoo
an hour ago
- Yahoo
Hertz & Amazon, McDonald's combo meal, Intel & investors
Market Catalysts host Julie Hyman takes a look at some of Wednesday's trending tickers on the Yahoo Finance platform: Hertz (HTZ), McDonald's (MCD), and Intel (INTC). To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. Now time for some of today's trending tickers. We are watching Hertz, McDonald's, and Intel. First up is Hertz. The company reportedly planning to sell pre-owned cars via Amazon Autos. That's according to CNBC. Brooke DiPalma is still with me here. So this is really creating a ripple effect because we've got Hertz trading higher. We've got Carvana trading lower, um, as people have more ways to buy cars online. Yeah, really interesting. This is actually Amazon's first time, or rather, Hertz will be the first fleet dealer on Amazon Autos. And so that's why you're seeing this excitement among investors right now. The stock now up nearly six percent, or nearly five and a half percent in this midday trading session. But then on the flip side, you're seeing Carvana down about 3% after Carvana's been one of those stocks that has gotten so much attention year-to-date, up more than 60%. But if you take a look at Hertz, it also has gotten similar momentum year-to-date up more than 50%. So this will really allow Hertz to sell those used cars on Amazon, which sounds like a futuristic concept to me, if you ask me. But they're going to sell brands like Ford, Toyota, Chevrolet, Nissan. And once again, this is pretty significant because this will be the first fleet dealer on Amazon Autos, and that is given to Hertz. And perhaps that's why you see some pressure on Carvana right now. Yeah, those shares down about 3%. Next up, let's talk McDonald's. Shares are rising there. The Wall Street Journal is reporting the company is planning to lower the cost of its combo meals. It had to get the buy-in, Brooke, from its franchisees to do that, um, but, you know, it just emphasizes that value is the name of the game here. Value, absolutely, is the name of the game here. And McDonald's is really hoping to regain that leadership when it comes to their value proposition. We know that this company, this fast food chain has really struggled lending share to those fine dining, fast casual restaurants that gained momentum in the middle of last year as consumers really look for their best bang for their buck. And we did see same-store sales here in the US reverse to the upside for McDonald's last quarter. They jumped about two and a half percent in the company's fiscal quarter. But customers really want more here. They want more value, more bang for their buck. And so what we know is that McDonald's and its US franchisees agreed to keep the cost of eight popular combo meals about 15% below the sum of the individual item prices. That's according to those materials viewed by the Wall Street Journal. But it'll be interesting to see how this all plays out. But they also have that big value meal they've been trying to lean into. Also the return of the snack wrap, which has me excited. So right now we see investors certainly pleased as well. Yeah, looks that way. And and finally, let's talk a little bit more about Intel. We've been talking about Intel all day. Now there's a new report from CNBC that Intel's in talks with other large investors to get an equity infusion, but at a discounted price. Now this comes amid SoftBank's two billion dollar investment, and of course, what the White House is reportedly weighing, taking some sort of stake in the company. So we've been watching those Intel shares closely. We had a discussion about this earlier. Right now, the shares, Brooke, are down by 6%. Yeah, Intel's been quite on a ride over the past few days. It's leading the Nasdaq 100 lower. If you could see at the YF interactive, over the past three days, stocks are, Intel stock is down more than three and a half percent. And this has been quite the ride for Intel as they've gotten sort of this mixed picture as they're trying to make way into the AI revolution. We know that with that potential of the Trump administration trying to get involved, we know that Commerce Secretary Howard Lucknick said that the US government must receive an equity stake in Intel. But this is a company that has truly been on a tear year-to-date. It's up nearly 18%, not as much as the other AI players that we've seen, but there's so much back and forth over the past few days with this company stock as well. Yeah, definitely. And um, there probably will continue to be. Thanks, Brooke. As always, you can scan the QR code below to track the best and worst performing stocks with Yahoo Finances' Trending Tickers page.