Latest news with #IsabelBarrow
Fast Company
29-05-2025
- Business
- Fast Company
People are commiserating over ‘Maycember': Why this month has families feeling financially strapped
Have you heard of ' Maycember '? According to social media, it's a term that describes the hectic nature and mounting expenses families face around May, particularly parents with children, due to the increased cost of everything from graduation gifts to summer camps and family vacations, which combined with inflation (and tariffs), have made May feel extra expensive, just like the winter holiday season. That's as total spending for college and graduation gifts is expected to reach a record $6.8 billion in 2025, up from $6.1 billion in 2024, according to the National Retail Federation. And U.S. consumer spending was up in May 2024, even as prices remained stable; the personal consumption expenditures (PCE) price index was unchanged last May but still marked a 2.6% year-over-year rise, according to financial news site Finimize. (On the consumer side, spending increased by 0.2%, maintaining momentum from April's 0.1% rise, aided by a 0.5% bump in personal income.) 'May often feels like a second December because so many expenses pile up at once,' Isabel Barrow, executive director of financial planning at Edelman Financial Engines, told CNBC. Some of those expenses include graduation, Mother's Day, camp, summer travel, and weddings. Some families might also have higher grocery bills when children come home from college to visit for July 4, or throughout summer until Labor Day weekend. And the end of spring brings a flurry of activities that mark the end of the school year and the beginning of summer, which can often require paying up for tickets, gear, or other related expenses, including school events like dance or music recitals, kids' sports tournaments, field trips, and end-of-year projects. But just where exactly did the term 'Maycember' come from, anyway? The word got out after the Holderness family, popular on social media, posted a funny YouTube video that went viral, garnering 270,000-plus views. The family has since posted another Maycember parody. Meanwhile, a number of parents have also taken to social media to post and commiserate about Maycember; a recent Instagram post from Scary Mommy got more than 23,000 likes and even more shares.
CNBC
28-05-2025
- Business
- CNBC
'Maycember' is almost over — here's how to recover financially after a string of end-of-school-year activities
It's officially "Maycember," a term making the rounds on social media to sum up the chaos and high costs of May — which mimic those of December, minus the holiday cheer. Although May is typically a month of endings and new beginnings, inflation and social pressure have helped drive up the prices for many of the expenses that fall within its 31 days. From graduation gifts and prom attire to camp payments, dance recitals and sports tournaments, the gauntlet of events has left parents feeling particularly strained. "May often feels like a second December because so many expenses pile up at once," said Isabel Barrow, executive director of financial planning at Edelman Financial Engines. "Graduations, school events, weddings and summer travel plans all converge, creating a storm of financial stress." Here's a look at other stories impacting the financial advisor business. The key is not to panic, Barrow said. "It's important to remember that a long-term plan requires long-term perspective, and one month of overspending doesn't have to derail your financial goals." Most financial experts recommend going back to a basic budget. "The first step towards recovery is to take the time to review your spending and reassess your financial plan," Barrow said. "Financial well-being begins with awareness and the feeling that you are regaining control." If you've racked up credit card debt, start addressing that immediately, Barrow said. To stay motivated, try picking a repayment strategy, such as the avalanche method or the snowball method, which respectively prioritize paying off the highest-interest debt first or paying off your debt from smallest to largest balance. At the same time, automating your savings is one of the best ways to rebuild after a heavy spending period, Barrow said: "Set up a recurring transfer to your emergency fund or savings account." If your employer offers direct deposit splitting, use that to route a portion of your paycheck directly into savings, she advised. The start of summer is also a good time to scale back, according to certified financial planner Lazetta Rainey Braxton, founder and managing principal of the Real Wealth Coterie. Pack a picnic lunch for a day at the park, or "find free events such as museum days and public events." There may also be more opportunities to pick up a side gig this time of year, she added, such as babysitting or tutoring over the long break from school. Those funds can help turbocharge debt repayment. "Know that Maycember is a stretch month that doesn't represent the pace of your entire life," said Braxton, who is a member of CNBC's Financial Advisor Council. "Use your experience as a guide with a rearview mirror." Tally what you've spent on activities and celebrations such as Mother's Day, graduations and vacations, as well as any payments towards camps or summer activities. Use that total to make a plan for next year, she advised. "Start a Maycember fund by creating a separate savings account and setting aside $25 a month or more," she said. That advance planning can also come in handy to make the most of sales holidays later in the year, such as Black Friday and Cyber Monday, she added. Still, "It's important to remember that you don't need to overspend or go beyond your budget to give meaningful gifts," cautioned Kelli Smith, a director of financial planning at Edelman Financial Engines. "Thoughtfulness and creativity can make a big impact."
Yahoo
12-02-2025
- Business
- Yahoo
Is This the Salary You Need To Stop Worrying About Money?
There's no argument that everything costs more these days. Rising prices and continued inflation are driving many Americans to worry about their finances and many can't even afford a minor emergency. Try It: Learn More: 5 Subtly Genius Moves All Wealthy People Make With Their Money In fact, according to a recent Empower survey, 37% of Americans can't afford an emergency expense over $400 and 21% have zero emergency savings. Not having to worry about money daily would be great, but this is certainly not the case for many Americans today. Here's how much money Americans think they need to earn annually to stop worrying about money. According to Edelman Financial Engines' 2024 Everyday Wealth In America study based on more than 3,000 respondents, here are some key insights highlighting Americans' financial perceptions today: 58% of Americans think earning at least $100,000 annually is necessary to avoid worrying about everyday expenses. One-quarter of respondents believe it takes an annual salary of at least $200,000. 49% of Americans carry credit card debt. Of those who do, the median amount of debt held is $7,000. At the same time, about two-fifths of this group (21%) have more than $20,000 credit card debt. 36% of U.S. homeowners (and 49% of those under age 50) feel like they can't move houses due to continued high interest rates. 22% of Americans have made financial decisions before or in response to an election. Discover More: Isabel Barrow, director of financial planning at Edelman explained to CBS MoneyWatch that 'we are noticing many Americans, even those who are affluent, aren't feeling very confident about their financial situation.' Of those Americans polled, continued inflation, high interest rates and political instability were some of the reasons cited for their financial worries. In today's economy, the general perception indicates that a six-figure income may no longer be the gold standard but rather just what you need to pay the bills. More From GOBankingRates5 Subtly Genius Moves All Wealthy People Make With Their Money 4 Low-Risk Ways To Build Your Savings in 2025This article originally appeared on Is This the Salary You Need To Stop Worrying About Money? Sign in to access your portfolio
