Latest news with #Piere
Business Insider
06-05-2025
- Business
- Business Insider
A personal finance expert saw her friends leaving 'tens of thousands' on the table with money mistakes — but it wasn't their $5-a-day coffees
Young professionals are leaving thousands of dollars of their hard-earned money on the table, a personal finance expert says. But, she said, their money mistakes have nothing to do with their daily purchases. As a New Yorker, Yuval Shuminer, the founder and CEO of the fintech app Piere, was used to expensive coffees and brunches. "It is an absurdly expensive city," Shuminer told Business Insider. "As you go about day-to-day life, you start to rack up a lot of these expenses across coffee that costs $7, an avocado toast that costs $12." But in 2022, when the economy started to turn, Shuminer saw some of her friends get laid off and look at their finances more critically. "The conclusion that we came to is that we're taking so much brainpower to think about the $5 that we spend on coffee every day," Shuminer said. "It is so constricting to our lives." Young professionals do make a lot of financial missteps. But the biggest one is holding their savings — sometimes tens of thousands of dollars — in accounts with 0.02% interest when market rates for high-yield savings accounts were more like 4.5%, said Shuminer. "That alone is $10,000 they're leaving on the table," Shuminer said. Shuminer, who studied behavioral economics, launched Piere in December 2023 in response to what she saw. She thought traditional budgeting apps focused too much on constraining spending rather than automating financial optimization. She realized that so many people weren't aware of how much money they could easily put in their pockets while instead focusing on these $5 purchases that shape their lifestyle. "Instead of working with all these tools that focus on constraining people's budgets and limiting the amount that you're spending on these fun things, the way that we built Pierre is to say, those things are fine," Shuminer said. "But if you're leaving your money in savings without earning yield on it, or you're paying fees that you shouldn't be paying, those are the things that aren't OK." Piere's ethos is to make your money work for you in the background, Shuminer said. Most of Piere's users are lower or middle class, Shuminer said, who didn't necessarily learn early on how to manage money. "Consumers are just so overwhelmed with the financial choices that they have to make that oftentimes they just don't do them," Shuminer said. "Because of inertia, because of anxiety, because of the frictions that they need to overcome in order to make some of these decisions." She said Piere does the hard work for them, keeping track of the financial marketplace, which changes daily. "Every single day, something is changing," Shuminer said, such as a new savings account with a better rate. "Money is a tool — you're not collecting money just to collect money," she added. "You're collecting money for it to create more value in your life so that you can allocate it to the things that are going to make you happier or better off." Shuminer said the biggest financial oversight she sees people in their 20s making is not realizing the impact that even small investments can make. "$10 a month, $100 a month, has a lot of compounding effect," she said, which can turn into a healthy savings pot by age 40, and certainly by 70. "It's like it's some hidden secret that I think a lot of people realize when it's a little bit too late," Shuminer said. "Our goal is to help people."
Yahoo
21-04-2025
- Business
- Yahoo
The Best and Worst Places To Keep Cash, Coins, Crypto and More
No, really. Where is the best place to store your money? According to a survey conducted by Piere, an AI-powered financial management app, found that the average American stashes $544 in cash or valuables at home. Wanting to keep your money safe is fine. But hoarding it in the wrong places could do more harm than good. Think about the story back in 2009 where CNBC reported that a woman didn't realize her mother stashed $1 million in cash in an old mattress that she threw away. Check Out: Trending Now: Even if your mattress (or an equivalent item) is still in your home, there are huge risks with storing cash or its equivalent in your home. For one, your insurance policy may not provide coverage for cash or even crypto. Even if it does cover valuables, there may be policy limits. Don't forget the opportunity costs for cash. You're not going to earn any interest and even worse, the cash loses value due to inflation. So where are the best and worst places to store your cash, valuables or crypto? Even if you're convinced that a mattress isn't the best place to store your cash, a vase, freezer or some other secret compartment probably won't do. Your best bet is to store it at a bank or credit union. Most of these financial institutions are FDIC- or NCUA-insured. In case the bank or credit union goes belly up, your money is safe up to the insured amount. A high-yield savings account offers a higher rate for your cash, and so do money market accounts. Be sure to check if there are any minimum deposit amounts and if there are any fees you may need to pay. If you want to park your cash for longer and want to guarantee some sort of a return, a certificate of deposit (CD) could be a good choice. Many banks and credit unions offer slightly higher interest rates depending on the term you agree to. You will need to keep the cash for the agreed upon term or you could pay a penalty. Explore More: Storing your coins or other valuables at home may be safe, but be sure you document these items. That way, if in the event you need to file a claim, you have documentation to show to your insurance company. Consider storing these valuables in a fireproof safe. Otherwise, you could pay for a safe deposit box at your local bank. Yes, it'll cost you, but it could be worth it knowing your valuables are probably safer than at your home. Some precious metal dealers may also have their own storage facilities boasting climate controlled rooms and all the latest security features. You can consider this if you have a large amount of gold or other precious metals. Don't risk forgetting your wallet password or having it stolen by writing it down on a piece of paper, storing your information on the cloud, or committing it to memory. Instead, consider using a reputable crypto exchange or devices made to store crypto. For example, a cold wallet isn't connected to the internet, which could be safer for lager amounts of crypto. A hot wallet can make transactions easier, but it's connected to the internet which could be more susceptible for hackers. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 4 Affordable Car Brands You Won't Regret Buying in 2025 4 Things You Should Do if You Want To Retire Early 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on The Best and Worst Places To Keep Cash, Coins, Crypto and More
