Latest news with #MindMoneyBalance
CNBC
9 hours ago
- Business
- CNBC
Trying to eliminate money stress 'isn't realistic,' financial therapist says—do this instead
This summer, young Americans are gearing up to socialize more. But those outings and trips will come at a cost, and many Gen Zers aren't feeling so hot about their finances. A recent Cash App survey found 65% of Gen Zers are ready to increase their spending for experiences this summer, but an equal-sized share say that planning those costly activities makes them anxious. It may be nice to get rid of that anxiety altogether, but "trying to eliminate all financial stress or anxiety isn't realistic," says Lindsay Bryan-Podvin, a financial therapist and founder of Mind Money Balance. For starters, some financial stress can be healthy. In the short-term, it can help you realize what's most important to you and help you develop a broader financial plan that reflects your values, Bryan-Podvin says. Stress can also be motivating and help encourage you to stay on track. But if you're trying to make a big financial decision like whether to take a trip with your friends or buy a new car, it's wise to make sure you're in the right headspace to do so. And that doesn't mean trying to eliminate the stress. "A healthier and more doable approach is to dial down the intensity of stress to a level where you still feel capable of making wise financial choices," Bryan-Podvin says. When you have to make a big financial decision, take the time to think through it and get your emotions in check. When you do that, Bryan-Podvin says it's a good idea to think about your money stress on a scale of one to 10, with 10 being the highest. "If you're about to make a large unplanned purchase, like saying yes to a spontaneous weekend trip with friends, and your stress level is at an eight, pause before you reply," she says. From there, go for a walk, journal or whatever else helps you calm down. When your stress level is closer to a four or five, you can make a better decision, Bryan-Podvin says. "It's not about waiting until your stress is at zero or avoiding extra spending altogether," she says. "It's about feeling emotionally good enough to make a wise financial decision." Financial stress can help you figure out what your priorities are. If you're worried about not having enough saved for emergencies, for example, "that can clue us in that we value the peace of mind an emergency fund could provide," Bryan-Podvin says. But it's also possible you're stressing for the wrong reasons, especially if you're doing well financially. If you're aiming for perfection or trying to meet an arbitrary standard of someone who's "made it," it's a good time to check in with yourself. "If your stress is at an eight because you feel like you need to invest more, ask yourself, 'According to who?'" Bryan-Podvin says. "That extra check-in can help you get back in touch with yourself instead of trying to keep up with someone else's financial rules." Everyone may need something different to ease their financial stress. To start, try these four strategies from Bryan-Podvin. If you're not sure what your financial priorities are, you could wind up getting even more stressed with decision fatigue every time a spending opportunity arises. Knowing what you value can take some of the anxiety out of making financial decisions. If boosting your emergency fund is a priority, for example, you may have to skip a concert or a few dinners out this summer, Bryan-Podvin suggests. The decision may require saying "no" to your friends who want you to join, "but it can save you the discomfort of not meeting your financial goals in the long run," she says. Using money tools like automatic contributions to your savings or investment accounts can make it easier for you to hit your financial goals, Bryan-Podvin says. If you don't have to think about moving money manually, you won't give yourself the opportunity to spend it on something else. She also recommends using a high-yield savings account to help your money grow faster. Younger generations are getting better at talking openly about money, and that's a good thing: It can help you actually stick to your financial goals, Bryan-Podvin says. She encourages you to try "cash yapping," a term coined by Cash App to describe talking about money without stigma. "Telling your people what you're focusing on financially can provide accountability, decrease awkward moments and reduce social stress," Bryan-Podvin says. It's good to have a pulse on the actual numbers in your savings account. But if you're checking it constantly and having an emotional reaction, Bryan-Podvin suggests setting some boundaries. "Strike a balance between avoidance and obsession by setting light boundaries, like checking your savings goals weekly instead of daily," she says. "That helps you stay informed without constantly feeding the stress loop."
Yahoo
23-04-2025
- Business
- Yahoo
Bankrate debunks these 10 credit card myths
Plenty of myths exist about how credit cards work. Falling victim to credit card myths could have a negative impact on your credit score. Doing your research when it comes to facts about credit cards is key to protecting your financial health. Before I started writing about credit cards in February 2018, I had all kinds of thoughts about how they worked. My three-year stint as an editor at The Points Guy opened my eyes to what's real — and what isn't — when it comes to keeping your credit score high and your credit history clean. Your FICO credit score — one of the two most commonly used credit scoring models, in addition to VantageScore — is determined by five factors. Keeping track of these factors goes a long way toward keeping your score in the good range (which starts at 670 on a scale of 300 to 850). There are a lot of myths attached to the acquisition and use of credit cards, and when you believe the bad ones, your score could suffer. Below I share 10 credit card myths and offer some credit card facts. Credit card myths tend to persist because figuring out a credit score can be very confusing, says Lindsay Bryan-Podvin, a financial therapist, licensed master social worker and founder of the website Mind Money Balance. 'Your score is either in the weeds and you need to hack it, or it's bad and you should avoid dealing with it at all costs,' she says. To add more confusion, some of these myths can have a bit of truth to them. 'For example, your income does not affect your credit score, but your income is a consideration when it comes to qualifying for a loan or qualifying for how much credit you are extended on a credit card,' says Bryan-Podvin. False. Your income doesn't show up on your credit report. Instead, credit card issuers check your credit report, credit score and past payment history to ensure you can be trusted to pay your bills. Those with low-to-moderate income are just as likely to get approval for a credit card as someone with a high income, if you have a record of paying bills on time. False. Card balances can hurt your credit score, especially if your credit utilization ratio is high or you don't make payments on time — two of the five factors that determine your credit score. You also end up paying more for your credit because interest charges stack up on outstanding balances. Paying off your balances every month shows that you're a responsible cardholder and keeps your credit score high. So as long as you do not have any debt on your active credit lines, you should have a high credit score. Use your no-balance credit cards to pay bills every so often so an issuer doesn't close your account due to inactivity. True, but… It's natural to see your credit score drop a few ticks after you apply for a credit card. But if you make card payments on time and keep your credit utilization ratio down, your score should bounce back within 6-12 months. Once the new credit line is added to your report, your score may actually increase if the new credit available to you improves your overall credit utilization ratio. False. It's tempting to consider using these companies to 'fix' your credit score. The truth is that while these companies charge money and promise to remove information from your credit report, they don't have the power to raise your credit score instantly. Save your money and do the work yourself instead. Order a free copy of your credit report at comb through it for inaccuracies and dispute any information that looks incorrect. If you need help, reach out to reputable nonprofit credit counselors that can help you create a debt management plan. It takes time, but if you stick with it, your credit score will rise. False. When you cancel a credit card, your score may take a hit if your credit utilization ratio drops. Your account history is another factor FICO uses to determine your credit score. When you cancel a card, the length of your credit history may change, which could also negatively affect your score. Instead, if your card has no annual fee, keep it in your sock drawer and use it every so often to keep it active. If the card has an annual fee, check the length of its credit history. If it's among your oldest cards, you might want to keep it and pay the annual fee to avoid the credit score drop that could happen if you cancel the card. If not, the potential score drop may be worth the money you'll save if you decide to cancel the card. False. It sounds counterintuitive, but the type of credit you have accounts for 10 percent of your credit score. The three credit reporting bureaus want to see a mix of credit, such as credit cards, a mortgage, a home equity line of credit, a car loan, a personal loan or student loans. If you have a wallet full of credit cards, but no loans, your credit score could be negatively impacted. False. Student loans, like any other type of loan, are included in your credit report. Not paying them on time hurts your payment history, credit history and credit mix — three important factors that determine your credit score. Student loans are a type of installment loan, similar to a car loan, personal loan or mortgage. Paying on time could help your score. Be late or skip a payment, and your score may drop. False. Each person in a marriage has their own credit score, since credit reports don't include your marital status. Once you're married, you're not responsible for each other's pre-marital debt. However, if you and your spouse apply jointly for a credit card, an issuer will consider both credit scores when making a decision. If approved, you're both responsible for that debt. True, but… Payment history accounts for 35 percent of your FICO credit score. If you miss a payment (even a minimum one), it might be reported to the three credit reporting agencies, which may cause your credit score to drop. If it was a one-time mistake, you can ask the three credit bureaus for forgiveness to see if they'll remove the missed payment from your credit report. Avoid this in the future by setting calendar reminders or phone timers so you don't miss your payment due dates. False. You should check your credit report at least once a year, although you can order a report weekly for free through Review your reports from each bureau for inaccurate information that could negatively impact your credit score. Doing so can also help you catch fraudulent activity on your cards. Credit card myths can sound perfectly credible, says Bryan-Podvin. 'But it's important to take a beat and say 'this was something I believed, but let me figure out how true it is and if this particular myth is impacting me,'' she says. However, ignorance of your credit score and details on your report can have a catastrophic impact on your credit. In a worst-case scenario, negative information submitted by the three credit-rating bureaus could take up to seven years to be removed from your credit report, making it much harder to apply for credit cards and loans. You also face paying higher interest rates on financial products. Check out Bankrate's credit resources section for more information. Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
3 Money Habits Millennials Have That Are Different From Their Parents'
Millennials have taken a lot of heat over the years about their financial habits, with some thinking that the generation is prone to making frivolous purchases rather than focusing on their personal finances. The reality, however, is that many differences can be explained by the broader economic circumstances, like soaring costs of housing and education. For example, while the cost of electronics has plummeted since 1990, college tuition has risen over 400%, while costs of other critical areas, like housing, healthcare and daycare, have risen faster than median wages, according to a 2024 analysis by the U.S. Department of the Treasury. Read Next: Explore More: Still, millennials are finding ways to respond to these circumstances. 'Millennials are redefining financial wellness by prioritizing adaptability, financial transparency and systemic awareness in ways that set them apart from previous generations,' said Lindsay Bryan-Podvin, LMSW, a financial therapist and founder of Mind Money Balance. Specifically, they're embracing the following money habits that differ from how their parents approach personal finance. Also see the four worst mistakes millennials can make with their money — and how to avoid them. Coming of age in the internet era, millennials are often utilizing technology more in their financial lives than their parents do. For example, millennials are utilizing automation, such as autopay and autosaving features, along with budgeting apps and digital banking tools, according to Bryan-Podvin. Millennials are also utilizing peer-to-peer payment apps to send money quickly to friends, as well as technology like buy now, pay later (BNPL), she said. That's not to say that technology like BNPL is always advantageous, but if used wisely, it can be more affordable than going into credit card debt. Be Aware: Another key differentiator is that millennials are often using their purchasing power to align with different values. 'Millennials prioritize spending on experiences over things, a shift from their boomer parents, who valued homeownership and accumulation of 'stuff' as markers of success,' Bryan-Podvin said. 'While the boomer generation may turn their nose up at it, millennials are willing to pay more to purchase from values-driven stores and companies.' Lastly, some millennials are pushing for systemic change to help overcome some of the broad barriers this and younger generations face. 'Millennials are more likely to side-eye the old 'pull yourself up by your bootstraps' narrative. This generation recognizes external factors like wage stagnation, housing affordability and student loan debt aren't just personal challenges but systemic issues,' Bryan-Podvin explained. In fact, according to an October 2024 survey from Independent Center, millennials and Gen Z are reshaping the American Dream to align with more current challenges and opportunities, citing an increased difficulty for younger generations to buy a house, start a family and save for retirement. Despite systemic factors, millennials have to play the hand they're dealt to some extent — and they can potentially utilize those cards better by also incorporating some lessons from their parents. 'Since time-traveling and being born into a more financially prosperous time isn't an option, here are a couple of things millennials can borrow from their boomer parents to help them financially,' Bryan-Podvin said. One is to scrutinize whether something that is 'on sale' is really worth the money at all, she explained. Even if you can't always cut your way to financial success, there can still be some truth to people falling into the trap of overspending. 'I remember spending my restaurant hostessing money on new clothes from the mall, excitedly telling my mom I 'saved' because they were on sale. Her retort was almost always a version of 'you aren't saving money when you're spending it.' Irritating? Absolutely. But as an adult, I find myself turning to her wisdom when I add another thing to my cart because it's 'on sale.'' Bryan-Podvin said. Another tip is to invest early and consistently. 'While a pension can seem like financial lore, boomers benefited from small, consistent investments over time. Millennials can and should start investing in their figure via an employer retirement plan or contributing to their own IRA. Even $25 per month compounds over time and can make a large difference in their future,' Bryan-Podvin explained. Lastly, consider the role of jobs and longevity in certain positions could help finances. 'While I'm not suggesting that anyone stick out a toxic job, boomers stayed with their employers longer. There's a balance between job-hopping and strategically maximizing benefits and stability; for millennials, it's worth considering the financial security of a less-than-ideal job before leaving,' Bryan-Podvin said. More From GOBankingRates Who Would Benefit the Most from Trump's Social Security Tax Plan I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money25 Creative Ways To Save Money This article originally appeared on 3 Money Habits Millennials Have That Are Different From Their Parents' Sign in to access your portfolio
