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Chicago Tribune
30-07-2025
- Business
- Chicago Tribune
Letters: Why would Illinois want to be like Texas? Consider these statistics.
The editorial on Texas tax cuts would have us believe everything is bigger in Texas due to its low taxation. Yet, I can name a few basic benefits we should all expect to be afforded in a prosperous society, which are, in fact, very scarce in Texas. Want to live in a state where you're assured of basic quality health care? Don't move to Texas, which, unlike Illinois, refused the Affordable Care Act's Medicaid expansion and, as a result, has the highest uninsured rate in the country, according to the U.S. Census Bureau's American Community Survey. Want to live in a state that provides your children access to a quality education? Again, don't move to Texas, where, according to the Education Data Initiative, Texas invests one third less in their pupils than Illinois. ACT scores were five points higher in Illinois compared with Texas in 2024, according to the ACT. Want to live in a state that acknowledges the effects of climate change and does all it can to protect you from its pernicious effects? Moving to Texas will put you on a collision course with climate change's dangers, as evidenced by the millions of Texans left without power in the freezing winter during the deadly 2021 energy grid crisis due to a lack of regulatory oversight. Additionally, more than 130 lives may have been saved in the recent flash flood disaster in Texas had its leaders chosen to invest in siren networks and flood alert systems. While the Tribune Editorial Board would have you believe Texas' lower taxation leads to a windfall of savings for its residents, when accounting for the higher median incomes of Illinois residents and Illinois' superior social safety net, this claim turns out to be weak. A 2023 Council for Community and Economic Research report showed that while Texas's nominal cost of living was 7% to 10% lower than Illinois, the difference in effective purchasing power for the average family was only 2% to 3% lower. I know I am willing to pay 2% to 3% more to ensure my family benefits from better health care, stronger educational opportunities and improved disaster readiness to help us live longer and more fulfilling to the Tribune Editorial Board for continuing to promote the Republican Party line: tax cuts good and tax hikes bad ('Texas is talking tax cuts. Illinois? More hikes,' July 23) . It was one of the most tone-deaf editorials the board has done since it endorsed third-party candidate Gary Johnson over Hillary Clinton in 2016. I know we have short attention spans these days, but is the board really going to hold up as a role model the state where 138 people just died from floods because of a lack of infrastructure investment that could have been paid for with taxes? The state where 246 people died in 2021 when its power grid failed, also for lack of investment in infrastructure? The state that ranks second worst in the country for quality of life in 2025, according to CNBC? The CNBC article states that 'according to the United Health Foundation, Texas has the nation's lowest number of primary care doctors per capita, the second-lowest number of mental health providers, and it consistently has the highest rate of people without health insurance. The state has among America's strictest abortion bans, and crime is on the high side.' And regarding the abortion bans, was the editorial board aware of the following statistics? According to the Johns Hopkins Bloomberg School of Public Health, 'between 2021 and 2022, infant deaths in Texas rose from 1,985 to 2,240. … This corresponds to a 12.9 percent increase in infant deaths in Texas versus a 1.8 percent increase in infant deaths in the rest of the U.S. during the same period.' Public education, according to the World Population Review? Texas is 40th; Illinois is 17th. So go ahead, editorial board, continue to glorify tax cuts and encourage Illinois to become more like Texas, a state that chooses policies that kill people by default. Me? I will continue to cheer on our governor and other local and state officials who use the taxes they raise to give Illinois citizens a solid quality of Brandon Johnson has ruled out a property tax increase and instead is looking for 'progressive revenue.' The mayor once was a teacher, but he seems incapable of learning lessons from history. The facts are clear: High taxes drive people out of cities and states. Tens of thousands of residents left Illinois each year from 2019 to 2024, and high taxes were a major reason for many. Illinois only avoided losing population due to immigration, largely people from Venezuela. In the old Soviet Union, the system controlled where people could live and work. China has the system of household registration, severely limiting educational and job opportunities and access to services to residents who do not stay in their assigned permanent residency. Thankfully, in the United States, people are free to choose where to live. The mayor was cagey about what specifically 'progressive revenue' means. It is worth considering what taxes Chicagoans already pay. In addition to federal and state taxes, the sales tax in Chicago, a portion of which goes to the state, is 10.25%, among the highest of American cities. Property taxes are already higher than the national average. There are real estate taxes, utility and telecom taxes, amusement taxes, hotel taxes, restaurant taxes, alcohol taxes, a shopping bag tax and cannabis taxes. Businesses are struggling because of high taxes. Tax the wealthy? Fueling the exodus of wealthy taxpayers will further weaken the tax base. Wealthy corporations? Boeing, Caterpillar, Citadel, Tyson Foods and others have already left. A bailout from Springfield or Washington is a pipe dream. Borrow more money? The debt per taxpayer is already among the highest in the country. There is only one responsible option for Chicago: Cut expenses. Unfortunately, the mayor lacks the nerve to do Harvey grapples with mounting debt, it recently made the difficult — but fiscally responsible — decision to lay off 10% of its workforce. And what has Mayor Brandon Johnson and Gov. JB Pritzker done to address the finances of Chicago and the state, respectively? Johnson has not addressed this city's bloated workforce. Instead, he told the city's contractors to reduce their charges and advocated for the Bring Chicago Home initiative, which would have raised the real estate transfer tax on the wealthy and corporations, spurred their departures and ultimately reduced the city's tax base. Likewise, Pritzker has not addressed this state's dismal pension and financial outlook. He has yet to address this state's number of governmental bodies — more than 8,500 — and attendant costs, which are more than even more populous states. Instead, our governor advocated for a graduated income tax scheme, which would have had the same effect as Bring Chicago Home, and now he simply baits President Donald Trump in national forums. Chicago needs to reduce municipal expenditures by examining and eliminating its bloated workforce, and it further needs to consider the need for 50 wards and aldermen and the attendant expenses. And Illinois needs to get its financial house in order by consolidating and/or eliminating some of its more than 8,500 governmental bodies. The elimination of bloated workforces and governmental bodies would be to the benefit of overburdened and overextended taxpayers and thus would be in the public interest.
Black America Web
15-07-2025
- Business
- Black America Web
The Retirement Gap: Why Saving For The Future Is Harder For Black Americans
Source: AndreyPopov / Getty Despite rising incomes, many Black Americans continue to face major hurdles when it comes to saving for retirement, according to the 2025 Retirement Confidence Survey by the Employee Benefit Research Institute. The survey, which included an oversample of Black workers and retirees, revealed that the racial wealth gap persists across income levels. Among households earning $75,000 or more, just 33% of Black respondents reported having at least $250,000 in savings and investments, compared to 63% of non-Black respondents. Debt is a key factor: 63% of higher-income Black households said debt was a problem, versus 45% of non-Black households at similar income levels. Nearly half of those Black respondents said debt directly impacted their ability to save or retire comfortably. Debt remains a major barrier to wealth building for Black people. For example, Black student loan borrowers are disproportionately burdened by debt, with undergraduate Black borrowers paying an average of $386 per month, according to a 2024 report by the Education Data Initiative. Housing costs further compound this disparity. A 2022 report from Housing Matters found that, on average, Black homeowners pay an additional $13,464 over the life of a mortgage. This extra cost translates to approximately $67,320 in lost retirement savings for Black households, further widening the racial wealth gap. While many Black Americans feel confident managing daily expenses, fewer feel equipped to invest or plan for the long term. Among higher earners, only 77% of Black respondents reported saving for retirement, compared to 87% of non-Black counterparts. Retirement itself looks different, too. Around 44% of Black retirees said they left the workforce earlier than planned due to health issues or disability, compared to 32% of non-Black retirees. Many also returned to work for financial reasons and were more likely to say their retirement lifestyle fell short of expectations. Access to professional financial advice remains limited among the Black community. The study found that only 31% of Black respondents currently work with a financial advisor, although nearly half said they plan to in the future. Those who do seek help often prioritize managing debt, creating wills or estate plans, and securing life insurance over traditional retirement planning. While the data is alarming, researchers behind the eye-opening study said there are ways that the financial system can help Black individuals boost their retirement savings. These include providing greater assistance in managing competing financial priorities, such as reducing debt, supporting family members, and building long-term financial security. But Black folks don't have to wait on banks or institutions to take the first step. There are countless resources available to begin the journey toward generational wealth. It starts with prioritizing financial education, learning the fundamentals of budgeting, saving, and investing, while also exploring deeper topics like credit management, compound interest, and asset allocation. Black people can tap into a wide range of tools, including online courses, books, podcasts, and community workshops tailored to financial literacy. Connecting with financial professionals and attending local seminars can also offer practical guidance. By creating a culture of financial learning at home, Black individuals and families can not only strengthen their financial knowledge but also equip the next generation with the tools to start investing early and develop healthy money habits that last a lifetime. SEE MORE: Catalyzing Wealth-Building In The Black Community The Racial Wealth Gap And Solutions To Address It SEE ALSO The Retirement Gap: Why Saving For The Future Is Harder For Black Americans was originally published on
New York Post
09-07-2025
- Business
- New York Post
Wealthy families are buying out-of-state homes to snag tuition discounts at universities
Colleges have become so expensive that even wealthy families are looking for ways to save on tuition. While this typically means trying to secure scholarships, another way of snagging lower tuition is becoming increasingly popular: buying property in the state your child will be attending college. Advertisement All 50 states offer tuition discounts to in-state residents, the reasoning being that residents pay taxes that should offset their costs of higher education—and the savings can be steep. Public four-year undergraduate degrees have an average out-of-state tuition cost of $28,297 versus $9,750 for the same degree in-state, so these savings are not small by any stretch, according to Education Data Initiative. Even the most expensive in-state tuition in the country—William and Mary College, running $26,456 for annual tuition and fees—still offers a significant shave off the out-of-state cost of $52,725 for the same degree. 7 Public four-year undergraduate degrees have an average out-of-state tuition cost of $28,297 versus $9,750 for the same degree in-state. xixinxing – Advertisement Florida comes out tops for in-state discounts, with an average tuition of only $4,540. The University of Florida in Gainesville, for instance, costs $28,658 for out-of-staters but a mere $6,380 for residents, a whopping 77% discount. The priciest state on the list is Connecticut, with an average $37,907 yearly tuition for out-of-staters. Become a resident, however, and watch that bank-busting tuition plunge to $15,763. The state's most famous university, Yale, does not offer in-state discounts, as it's an Ivy League institution, but another top-tier school, UConn, does. Out-of-staters will cough up $39,678 per year compared with $17,010 for in-staters. 7 Florida comes out tops for in-state discounts, with an average tuition of only $4,540. Advertisement Texas, with a plethora of colleges with excellent reputations, will cost an average annual $24,743 for the out-of-stater but a mere $8,195 for the resident, a hefty 67% discount. (It should be noted that the state recently ended its in-state tuition discounts for persons without legal status.) Now, add up those reductions up over the four years a child would typically attend college, and perhaps multiple children, and the savings can easily pay for the property purchased. (Keep in mind that properties come with their own costs—such as HOA fees, insurance, and maintenance. Run the numbers to make sure that it's still worth it to buy.) 'It's the No. 1 choice why my clients are moving here,' Houston-based real estate agent Erwin Nicholas, who specializes in high net worth buyers, tells 'Pretty much all of my clients are moving to Texas with education-based decisions in mind.' 7 Texas, with a plethora of colleges with excellent reputations, will cost an average annual $24,743 for the out-of-stater but a mere $8,195 for the resident. Advertisement While the Lone Star State's many tax benefits are a draw, as is the significantly lower price-per-square-foot home price tag, Nicholas, a former middle-school teacher, says the many excellent universities and the in-state tuition discounts are drawing buyers from pricier states such as California, Georgia, and South Carolina. Furthermore, a property located near a university might not only appreciate more than the average, but also sell faster. These properties 'have a greater appreciation,' says Nicholas. 'They are investment vehicles as well as places for your kids to stay.' College adviser … and real estate agent? 7 Furthermore, a property located near a university might not only appreciate more than the average, but also sell faster. xixinxing – This kind of savvy financial planning has led to the rise of university-knowledgable agents such as Nicholas becoming nearly as important to the college-bound student as a guidance counselor, college adviser, or SAT tutor. 'You want to get a Realtor® who is educated on these matters,' he says. 'I would encourage parents to start thinking about their kids' education not just from a scholarship standpoint and making good grades, but thinking about what states, like Texas, have in-state tuition discounts and what are the rules you should be aware of.' But don't wait until the last minute to snap up that in-state property. 7 This kind of savvy financial planning has led to the rise of university-knowledgable agents. Advertisement Each state will have varying and strict requirements to qualify for cheaper tuition rates. Many, including Texas and Florida, require that a student live in-state for 12 consecutive months before qualifying. And plenty of college-paying folks will have the same idea that you do. Properties near good schools sell at a premium and can get snapped up quickly. Houston—a city that feeds into numerous top-ranked colleges such as Rice University, University of Texas, Texas A&M, and University of Houston—sees homes spend a median 46 days on the market, a 1.1% increase over last year, according to data, and much shorter than the median 71 days in 2017. 7 Properties near good schools sell at a premium and can get snapped up quickly. Advertisement To snag that in-state property, you will be competing not only with out-of-staters but also people already living in the suburbs. 'It doesn't make sense to drive an hour each way to school,' says Nicholas, who guides many suburbanites to buy a house inside the city limits. Here, the kids can live until graduation, and then the property can be used as an income generator. 'Long before the kid gets to college, parents should be thinking this way,' he says. Is it fair? 7 To snag that in-state property, you will be competing not only with out-of-staters but also people already living in the suburbs. xixinxing – Advertisement As with anything where those with means have a significant advantage over those without, the question of equality arises. After all, if a family has the funds to buy their kids a local property to live in while attending school, did the family really need that tuition discount? 'I wouldn't say so,' admits Nicholas. 'But it has more to do with strategy and savvy than fairness.' Advertisement Given all the financial advantages of establishing residency to get that tuition relief, are there any downsides to handing over your newly purchased home to your college-age kids—and perhaps a roommate or two? 'This can go one of two ways,' Los Angeles-based real estate investor Jameson Tyler Drew, of Anubis Properties, tells 'After two to four years, the house is either immaculate or it's trashed.'
Economic Times
09-07-2025
- Business
- Economic Times
Boomerang kids in 2025: how adult children are impacting parental finances
TIL Creatives Adult children, or boomerang kids, are returning home in record numbers in 2025, placing financial pressure on parents who are adjusting household budgets, healthcare coverage, and retirement plans (AI generated image) Who are Boomerang kids and why are they returning home? Boomerang kids are young adults who move back in with their parents after a period of living independently. In 2025, this trend continues to grow. According to the 2025 Boomerang Kids Survey, 46 per cent of parents report that their adult children, aged 18–35, have returned to live at home. Economic hardships such as student loan debt, rising housing costs, and unstable employment are contributing factors. Social acceptance of intergenerational living also plays a role. Housing affordability remains the leading reason for this return. The survey found that 32 per cent of respondents cited the cost of housing as the main reason their adult child moved back home. Student loan burdens are also significant. As of 2024, the average federal student loan debt was $37,853 per borrower, according to the Education Data Initiative. Wage stagnation, particularly among young adults without college degrees, and volatility in the job market are further influencing this pattern. Also read: Gen Z's Financial Habits: Rising Spending, Shrinking Savings, and Future Impact Life events that drive Boomerang kids back home Major life changes often trigger a return to the parental home. Divorce or separation is the second most common reason, reported by 20 per cent of boomerang parents. Other events include job loss, medical issues, or transitions such as returning to school. These situations can disrupt financial stability, making shared housing a temporary return is not always rooted in financial distress. Career changes or further education can lead young adults to choose a living arrangement that reduces expenses. The cultural stigma of living at home as an adult has also diminished. According to a 2023 Pew Research study, 74 per cent of parents said the experience of having an adult child living with them had a somewhat or very positive read: $5,000 'DOGE dividend' checks: Who qualifies and will it really happen? Financial pressures on parents supporting adult children Parents of boomerang kids often face financial strain due to increased household expenses. These include higher costs for groceries, utilities, internet, and other day-to-day essentials. Some families opt to create cost-sharing arrangements, with adult children contributing financially or providing household labor if unemployed or underemployed.'Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,' said Alex Gonzalez, a Thrivent Financial Advisor. 'With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.'The 2025 Boomerang Kids Survey found that 38 per cent of parents said their long-term savings, including retirement contributions, had been impacted by the return of adult children. Another 39 per cent said their short-term financial goals, such as saving for vacations or home renovations, were also affected. Health insurance and retirement: long-term considerations Adult children moving home may also require assistance with health insurance. Parents may add children under age 26 to their own workplace or ACA plans, often at a modest additional premium. In some cases, adult children may qualify for marketplace subsidies or Medicaid, depending on income and life adult children should not derail retirement savings. Gonzalez advises that older adults prioritize their financial futures even while assisting their children. 'As needs arise, like adult children moving back home, I remind my clients about their long-term goals so we can make sure they're not sacrificing their future goals for an immediate need,' he said. Also read: Canada job crisis: Gen Z left jobless and drifting as youth unemployment skyrockets to highest in 25 years Families are encouraged to set boundaries and expectations early. Financial planning with a professional can ensure the arrangement remains sustainable and aligned with both the parents' and adult child's goals.
Time of India
09-07-2025
- Business
- Time of India
Degrees are rising, jobs are not: Why a Master's no longer guarantees employment
The gown was ironed, the applause was loud, and the eyes were filled with fond hopes of a bright future. Years of late-night study sessions, sacrificed weekends, toiling hard, and mounting debt had culminated in one defining moment: A Master's degree. For years, this was the moment students waited for, a bridge between their ambitions and achievements, between potential and prosperity. But it felt like the script was suddenly flipped. In 2025, the bridge led to an open-ended pathway where the road ahead was not seen. Scrolling through job boards and online forums, the optimism once etched to advanced degrees was flickering. The hopes had translated into confusion and even despair. Resumes bring impressive credentials into the digital void. Interviews are scarce. Offers, when they come, don't match the investment. The present job market reeks of irony, where the most educated generation in history is encountering one of the most unpardonable job markets in decades. Is this a labour story? No, but a story of expectations, economy, and evolving value. It reiterates a question about how a society that once revered degrees now questions their worth. At the heart of it lies a troubling truth: A master's degree, long seen as a golden ticket, no longer guarantees a place at the table. The numbers don't lie: Degrees outpaced by disappointment The data paints a sobering picture. According to the St. Louis Federal Reserve, the unemployment rate for Gen Z graduates with a master's degree soared to 5.8% in the first half of 2025, nearly double from the previous year, and alarmingly higher than the national average of 4.1%. These are not theatre majors in limbo; these are individuals with advanced qualifications now adrift in an oversaturated market. Meanwhile, 43% of master's degree holders reported turning down job offers because the salaries couldn't offset the student debt they incurred,, an insight from Indeed's data that adds insult to injury. For those still enrolled, the average cost of a master's now hovers around $62,820, according to the Education Data Initiative, excluding lost earnings and time spent out of the workforce. The promise that fizzled: When the market doesn't need you An advanced degree was said to glorify in the interviews and sit at a privileged position. Alas, this is a narration of a story of the past. Today, that seat is vacant for someone with hands-on experience, even if their academic credentials stop at a Bachelor's. As employers are more inclined to skill-oriented courses that can reshape their job roles. The academic prestige is at a vulnerable stage, on the edge of losing its shine. This erosion of the degree-to-job pipeline isn't limited to niche fields. Even MBA graduates who were once considered bulletproof in boardrooms are struggling to meet the job requirements. A Bloomberg study recently reported hiring freezes across multiple industries, and mass layoffs in sectors from tech to hospitality have only intensified competition. The reality speaks for itself that a Master's degree now is less a differentiator and more a default, no longer a passport, just a permission slip. A cycle of crisis: When students flee recession into the arms of debt Yes, generational differences play their role here too. Generation Z? Into the pandemic. And now, they face a troubling economy and the threat of AI disruption. The reflex action cannot be going back to school once again. Nearly half of all master's degree programs today have a negative return on investment, according to a comprehensive study by the Foundation for Research on Equal Opportunity (FREOPP). In fact, the median ROI for a master's program is just $50,000, and 39% of MBA programs offer negative returns. The hidden costs: Beyond tuition lies lost time, burnout, and disillusionment What's often overlooked in the pursuit of advanced education is the opportunity cost. That two-year degree not only costs tens of thousands in tuition but also two years of career momentum, salary growth, and skill accumulation. According to career experts, the emotional toll is just as heavy: burnout, underemployment, and the sting of unmet expectations. What is often sidelined when weighing a Master's degree option is the opportunity cost. That two-year degree not only costs tens of thousands in tuition but also two years of career momentum, salary growth, and skill accumulation. According to career experts, the emotional toll is just as heavy: Burnout, underemployment, and the sting of unmet expectations. The thrill of acceptance into a top program fades fast when paired with mounting debt and a LinkedIn inbox full of silence. And while passion may justify a master's in fields like fine arts or theology, the economic reality often delivers a brutal counterpunch. What the market really wants: Experience, agility, and intentionality Academic degrees, it seems, are not the end of the road but only a conducive ground for students. Employers are increasingly looking for skills over titles, outcomes over credentials. And fresh graduates must note that certifications, project portfolios, internships, and apprenticeships are important currencies of the job market with or without degrees. The fork in the road: Rethinking the ROI of education However, this is not to infer that advanced degrees have become a thing of the past. But blind faith in them is. Students must now approach graduate education with the mindset of an investor, not just a learner. What's the opportunity cost? What's the 10-year outlook of the field? Is the institution respected by employers? Is the debt justifiable against realistic earning potential? Tools and ROI calculators offered by FREOPP, alumni networks, and financial advisors can help dissect these questions, but what's more critical is a mental shift. The narrative that 'more education equals better outcomes' must be replaced with 'the right education, at the right time, for the right reason.' When the degree stops opening doors, build your own Today's graduates are crawling into a job world where degrees are ubiquitous, but direction is rare, where institutional prestige is outpaced by personal strategy. And where those who thrive are not always educated, they are most adaptable. A master's degree may still have value. But it's no longer a guarantee. In today's job market, it's what you do with your education, not the letters after your name, that determines your trajectory. Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
