Latest news with #financialLiteracy
The Independent
a day ago
- Business
- The Independent
Trump gets Dell, Uber, Goldman Sachs to pay Americans $1K for each baby born — if ‘beautiful bill' passed
Executives from a trio of the biggest and most widely known companies in America are lining up behind President Donald Trump 's plan to create investment accounts for children born during his second term as an enticement to pass his divisive One Big Beautiful Bill Act currently under consideration in Congress. Dell Computer founder Michael Dell, Uber CEO Dara Khosrowshahi, and Goldman Sachs boss David Solomon appeared at the White House on Monday alongside Trump for an event to promote what the bill labels 'Trump accounts' as a way of promoting financial literacy and encouraging Americans to have more children. Each announced that their respective companies would be willing to contribute to accounts established for children of their employees. The 'Trump accounts' would be tax-deferred and would start with a one-time contribution of $1,000 from the federal government. Funds deposited into the accounts would be invested to track the overall stock market and be accessible when the children reach age 21. Trump hailed the business leaders for participating in the project, calling them 'the greatest business minds we have today.' 'These men and women lead large, successful companies, and they're committed to contributing millions of dollars to the Trump account. And it's really it's going to be something incredible for children and for their employees in many cases,' he said. 'This is a pro family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation, and they'll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future,' he added. The president credited Dell, a longtime Republican donor, with having brought the 'Trump account' concept to his attention, as well as GOP Representative Blake Moore of Utah and House Speaker Mike Johnson, the latter of whom hailed the proposed policy as ' a bold, transformative policy that gives every eligible American child a financial head start from day one.' But the plan Republicans have adopted actually follows one that has been implemented in places such as California, Connecticut and the District of Columbia — each of which has introduced 'baby bonds' which invest funds for newborns that are available when they reach adulthood for education and other purposes. The idea dates back to 2010 as an academic proposal for reducing wealth inequalities and breaking cycles of poverty, and it was the centerpiece of New Jersey Senator Cory Booker's short-lived 2020 presidential campaign. The Trump administration proposal included in the One Big Beautiful Bill Act would require at least one parent to produce a Social Security number with work authorizations, which would prevent children of some categories of immigrants from having accounts established for them. Unlike the District of Columbia's program and similar ones that are intended to reduce poverty by targeting disadvantaged groups, the 'Trump account' program would be available to families of all incomes. Dell, the veteran entrepreneur and home computer pioneer, said his company was 'proud to be one of the very first companies' to support the proposal. 'Following your inspiring lead, Mr. President, Dell Technologies will match the government's contributions dollar for dollar for every child born to a Dell team member,' Dell said. 'This isn't just a new benefit. This is investment in our people, their families, our communities and America's future, and it embodies our core belief that opportunity should begin at birth.' He added that he and his wife 'expect to make a very significant gift' through his family's foundation to support the plan, calling it 'a powerful platform for Philanthropic Innovation aimed at helping children thrive wherever they come from, particularly those families who historically left behind.'
Forbes
5 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: June 5, 2025
Rates on savings accounts are the same compared to one week ago. You can now earn up to 5.84% on your savings. Searching for an account where you can save for a rainy day or retirement? Here's a look at some of the best savings rates you can find today. Related: Find the Best High-Yield Savings Accounts Of 2025 Traditional savings accounts, called "statement savings accounts" within the banking industry, were notorious for paying meager interest in the aftermath of the Great Recession. Rates have been on the rise in recent years, and you can earn even more if you know where to look. For instance, online banks and credit unions often pay much higher rates than brick-and-mortar banks. The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with a comparable rate, you've done well for yourself. Today's average APY for a traditional savings account is 0.22%, Curinos says. APY, or annual percentage yield, accurately represents the actual amount your account will earn during one year. It factors in compound interest, which is the interest that builds up on the interest in your account. High-yield savings accounts often pay much more interest than conventional savings accounts. But the trade-off is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit. On high-yield accounts requiring a minimum deposit of $10,000, today's best interest rate is 4.88%. That's about the same as last week. The average APY for those accounts is now 0.22% APY, unchanged from a week ago. On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 4.21%. You'll be in good shape if you can nail down an account offering a rate close to that. The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. Start by comparing the best yields available on the market. There's no point in opening a high-yield savings account if you're not actually earning a high yield. But the interest rate shouldn't be the only factor you take into account. Consider whether a prospective account has a minimum deposit - and if you can meet it. You'll also want to watch out for fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you make more than a certain number of withdrawals in a given month) and other pesky charges that can eat into your returns. And before you apply for a new account, explore the reputation and safety of the bank or credit union by checking the reviews, seeing what people have to say about customer service and finding out how the financial institution responds to consumer questions. Choose a bank that's insured by the FDIC or a credit union insured by the NCUA. Those agencies provide up to $250,000 in insurance per depositor and bank for each account ownership category. Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation. The best high-yield savings account pays 5.84% now, according to Curinos data, so you'll want to aim for an account that delivers a yield in that ballpark. But rates aren't everything. You want an account that charges few fees, offers great customer service and has a track record of being a stable institution. Savings yields are variable and can change depending on economic conditions or a bank's particular financial need. Usually rates are influenced by the federal funds rate, meaning that a bank tends to raise or lower its rates along with the Fed. Online banks and credit unions tend to offer the best yields because they can pass along savings from low overhead while also striving to attract new customers.
CBC
24-05-2025
- General
- CBC
'Adulting 101' programs are helping Gen Z catch up on key life skills
Aldhen Garcia, a first-year student at Toronto Metropolitan University, says he has a lot of life skills to learn. "I don't know how to change a tire — I don't have a car at all. I don't know how to sew, I don't know how to do a lot of things other than cooking," Garcia told The Current. Garcia also has questions about financial matters, like interest rates, mortgages and paying rent. "I think it's so important that children are taught financial literacy. A lot of stuff involves money," he said. Waterloo University's Director of Student Success, Pam Charbonneau, has a message for students like Garcia: you're not alone. "What you're experiencing is normal. A lot of your peers are going through the same thing at the same time," she said. Some post-secondary institutions have added resources like courses and information sessions to help students learn life skills. Experts say that young people, especially Gen Z, are missing out on learning critical skills because they're not given enough independence. University of Waterloo created a online resource called Adulting 101 in 2023 to give students access to information about important life skills — like household maintenance, basic nutrition and how to navigate a grocery store — and help them manage their responsibilities and expectations. Offerings at other universities address issues like career planning, finances, first aid and maintaining healthy relationships. Charbonneau says many students report feeling anxious or stressed trying to navigate life in post-secondary school and that access to resources helps normalize their experience. She also said many students express that they wish they learned these skills earlier. Bella Hudson is one of those students. "There's a lot of things that are missed in education about when you actually become an adult," said the third-year TMU student. "I do wish that they had classes that taught how to manage yourself and manage your life." Generational differences Members of the Gen Z demographic, people born between 1997 and 2013, grew up with fewer opportunities to learn practical skills, according to researcher Jean Twenge. Twenge is a psychology professor at San Diego State University who researches generational differences. She argues that limiting kids' freedom and not teaching them practical skills is "doing them a disservice." "We send them off to adulthood without other skills. If they're not learning how to make decisions on their own and solve problems, that can be challenging," Twenge said. Twenge is the author of several books, including Generations: The Real Differences Between Gen Z, Millennials, Gen X, Boomers, and Silents―and What They Mean for America's Future. "Kids are growing up less independent, they're less likely to learn how to do adult things as high school students. Then they get to university and they still don't know," she said. In her 2017 book iGen, she described "the slow life strategy" — the idea that people live longer, spend more time in school and parents tend to have fewer children but nurture them more carefully. Twenge says the approach typically means kids gain independence later than in previous generations. WATCH | Experts and parents pushing back on 'gentle parenting': Why more parents are ditching the gentle approach 3 months ago Duration 9:20 A more empathetic approach, known as gentle parenting, has been a big trend in recent years, but experts and influencers are starting to push back. CBC's Deana Sumanac Johnson breaks down what's behind the growing resistance toward gentle parenting. And because students are living at home with their parents longer, she says they typically take on fewer tasks while parents handle responsibilities like cooking, laundry or paying bills. "You are just more likely to be financially dependent on your parents for longer. And as a result of that, people get married later, they have children later, they settle into careers later," Twenge said. According to Statistics Canada, the number of Canadians aged 20 to 34 living with at least one parent increased from 31 per cent to 35 per cent from 2001 to 2021. However, the older cohort — those aged 25 to 34 — rose from 38 to 46 per cent over the same time period, signalling that Canadians are living at home longer. Increasing mental health concerns Twenge says she supports universities introducing methods to help students learn important life skills but that, ideally, this education would begin earlier. She encourages parents to move away from the idea held by some parents that it's their job to do everything for their children and instead have them take on tasks like cooking or laundry. She says her biggest concern is the rise of depression among young people. A commentary published in the Journal of Pediatrics in 2023, which reviewed dozens of studies and reports, argues that increases in mental health issues are attributed to declining opportunities for children and teens to engage in activities independently from adults. It says depriving young people of independence can contribute to high levels of anxiety, depression, and suicide among young people. At the University of Waterloo, Charbonneau says Adulting 101's objective is to help students develop as young people, not just as learners. In addition to teaching basic life skills, the resources also prioritize mental and physical health, and help students explore their own personal growth. The university also offers students skill evaluations to help them identify strengths and areas they can improve. Charbonneau says self-advocacy is one of the most important skills students can learn from the programs. "Self-advocacy is probably the most important piece and probably where the gap is right when they come in, if they really haven't had to do much of that before," Charbonneau said. She said students are usually grateful and relieved to have access to these tools.
CNET
22-05-2025
- Business
- CNET
We Learned These 6 Money Lessons the Hard Way. You Don't Have To
Most school curriculums don't dive into money learn a lot in school, but how to manage your money is rarely one of those things. Which is unfortunate, because let's be honest, how often are you likely to use the quadratic formula in your day-to-day life? We have more than 60 years of combined personal finance experience on the CNET Money Team, but we gained most of our knowledge the hard way. We've made money missteps and let opportunities pass us by, and we want to save you from the same stumbling blocks. So we asked our team members to share some of the key things they wish they'd known sooner. Read more: Money Anxiety? Here's the Expert Advice I Followed to Get Smart With My Finances How student loans work "I had no idea what I was signing on for at the time. To me, taking out $10,000 in loans might as well have been $100,000. Sure, I knew the second number was bigger, but they were both abstract figures I couldn't wrap my head around." This one's for the high school graduates specifically. The average student loan balance is almost $40,000. That's a massive debt to shoulder so early in life. Student loans can help make college more affordable, but many of us don't fully grasp what we're getting ourselves into. Before applying for a student loan, make sure you fill out the FASFA -- Free Application for Student Aid -- to learn which federal grants, loans and other financial help you're eligible for. Also, apply for any and all private scholarships and grants you qualify for. The more free funding you can get, the less you'll need to take out in student loans. Next, you should know the difference between federal and private loans. Federal loans, funded by the US government, can be: Direct subsidized loans: The US Department of Education pays the interest on the loan while you're in school at least part time, during the six-month grace period after graduation or if your loans are in deferment. The US Department of Education pays the interest on the loan while you're in school at least part time, during the six-month grace period after graduation or if your loans are in deferment. Direct unsubsidized loans: Loan interest accumulates during all periods, even when you don't have to make loan payments (like while you're in school or during deferment or forbearance). You can choose to pay this interest at any time. Loan interest accumulates during all periods, even when you don't have to make loan payments (like while you're in school or during deferment or forbearance). You can choose to pay this interest at any time. Direct PLUS loans: Your parents (adoptive, biological or stepparents) can apply for these loans to cover your education expenses. They're responsible for repaying them. Private student loans are offered by banks, credit unions and other funding sources. They can help cover any remaining shortfalls, but beware that the terms are often less favorable than federal loans. They may have higher interest rates, and they don't offer repayment assistance like forgiveness or income-based payment plans. If a loan is your best option to pay for college, do your research before applying for one. Look into the degree you want and compare tuition costs at multiple colleges. And don't overlook community college programs. Many of them now offer paths to four-year degrees through partnerships with state schools -- a path CNET Senior Editor Courtney Johnston wishes she'd taken. You should also know the average starting salary for the job you want in your area. Use that figure and your estimated loan amount to determine how much you'll likely pay each month when your student loans come due. Johnston recommends the student loan calculators on Note: Many features of the current student loan program are in limbo. Student loan forgiveness options are tightening, and a GOP proposal to overhaul federal student aid could increase eligibility requirements for Pell Grants, set a limit on how much students can borrow and further change student loan repayment programs. If you're just starting college, these proposals could affect you before you earn your degree. Experts recommend going into college thinking about the total cost, not just the first year. The importance of building a savings habit "When I graduated from high school, I received a decent pot of gifted cash. Had I put all that money in a one-year CD or high-yield savings account, I could have added a few hundred dollars to my savings -- I was saving for a car. By the time I bought a car, I could have paid off a year's worth of car insurance with the earned interest alone. But I wasn't ever educated on these options at that time." Establishing a savings habit -- even if you don't have a ton to put away -- can help you build an emergency fund and cover unexpected expenses without going into debt. Knowing where to keep your savings is equally important. Two great options to start with are: High-yield savings account: HYSAs can offer APYs more than 10 times the national average interest rate. Look for accounts that require a low or no initial deposit and avoid banks that charge monthly fees. Certificates of deposit: A certificate of deposit is a special savings account that offers a fixed rate in exchange for keeping your money in the account for a set period, or term. CDs are best for money you can afford to lock up for a specific time, because if you withdraw your money before the term ends, you'll pay an early withdrawal penalty. How to use credit cards responsibly (and why you should) "Charging $10 here or $20 there didn't seem like much at the time. I didn't realize how compound interest -- and only making minimum payments -- would balloon this amount over time." Credit cards are an easy way to cover costs, especially when you're working with an entry-level income. But they're also an easy way to get locked into a never-ending cycle of high-interest payments that can hamper your finances for years to come. That said, there are ways to use credit cards responsibly. Check out these resources to learn more: How interest works: Only paying the minimum on your credit card will cost you several times over due to interest charges. Only paying the minimum on your credit card will cost you several times over due to interest charges. How your credit score works: Your credit score -- the three-digit number lenders use to determine your creditworthiness -- can affect everything from your ability to get a loan to the rate you pay on one. Your credit score -- the three-digit number lenders use to determine your creditworthiness -- can affect everything from your ability to get a loan to the rate you pay on one. How to boost your credit score: Whether your score is low or you're just starting out, these tips can help you improve it. Student credit cards are an ideal way for grads with limited credit history to establish credit and earn rewards. How much you should keep in your checking account "For a long time, I kept too much money in my checking account because I didn't really understand the purpose of a checking vs. savings account." A checking account is the best place to keep money you'll use for monthly bills and purchases. Look for an account with a competitive APY and no monthly fees, minimum balance requirements or overdraft charges. But even with the right checking account, you can lose out by keeping too much money in it. If you have considerably more money in your checking account than you need for everyday expenses, consider moving some of it to a high-yield savings account or CD. Most checking accounts pay little to no interest, but an HYSA or CD will allow you to maximize the amount of interest you can earn, growing your money faster. How to do your taxes "Figuring out how to file my taxes was scary. I was worried I'd make a mistake and the IRS would show up at my door. It's something we all have to do every year -- you'd think it would be more widely taught." If you're joining the workforce, be prepared to pay taxes on your income. Meeting with a tax professional can help you avoid mistakes and plan for the best outcome, but it also pays to know some basics, including: Why you should contribute to retirement savings now "Prioritize setting up your retirement contribution for each new job. It only takes a few minutes but can make a world of difference to your savings outcomes." Retirement may be in the distant future, but that doesn't mean you should ignore retirement planning. As a recent graduate, time is on your side. Thanks to the power of compound interest, saving even a small amount over time can add up significantly -- and the sooner you get started, the better off you'll be. Once you begin working, open a tax-advantaged retirement savings account to save a portion of your income before it's taxed, reducing your taxable income. Common tax-advantaged retirement savings plans include: 401(k): A retirement savings account established by employers to help employees save for retirement A retirement savings account established by employers to help employees save for retirement 403(b): A retirement account offered to employees of organizations such as schools, charitable organizations and other tax-exempt entities A retirement account offered to employees of organizations such as schools, charitable organizations and other tax-exempt entities Traditional IRA: An individual retirement account not connected to an employer, which you can establish through a bank, broker or robo-advisor Employer-sponsored retirement plans may also match your savings contribution up to a limit. For example, some companies match contributions up to 6% of your income. That's essentially free money. Go forth and prosper Now that you've prepared academically for the next part of your journey, it's time to focus on improving your financial literacy skills. Starting your next phase with a solid financial foundation will help you ease the transition and avoid unnecessary pitfalls. Congratulations on your accomplishment!
Forbes
20-05-2025
- Business
- Forbes
High-Yield Savings Account Rates Today: May 20, 2025
Rates on savings accounts are the same compared to one week ago. You can now earn as much as 5.84% on your savings. Searching for an account where you can save for a rainy day or retirement? Here's a look at some of the best savings rates you can find today. Related: Find the Best High-Yield Savings Accounts Of 2025 Traditional savings accounts, called "statement savings accounts" within the banking industry, were notorious for paying meager interest in the aftermath of the Great Recession. Rates have been on the rise in recent years, and you can earn even more if you know where to look. For instance, online banks and credit unions often pay much higher rates than brick-and-mortar banks. The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with a rate in that ballpark, you've done well for yourself. Today's average APY for a traditional savings account is 0.22%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn during one year. It accounts for compound interest, which is the interest that accrues on the interest in your account. High-yield savings accounts often pay considerably more interest than conventional savings accounts. But the trade-off is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit. On high-yield accounts requiring a minimum deposit of $10,000, today's best interest rate is 4.88%. That's about the same as last week. The average APY for those accounts is now 0.23% APY, unchanged from a week ago. On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 4.40%. You'll be in good shape if you can get an account offering a rate close to that. The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. That's tough to say—it depends on the path of inflation and the overall economy. The highest interest rates in recent history were seen in the early 1980s when the Fed hiked the federal funds rate to over 19%. That was in response to record-breaking inflation that had prices rising at a rate of over 14% annually. In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to Federal Reserve data. Savings rates eventually fell as inflation cooled and the federal funds rate was brought back down. Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation. The best high-yield savings account pays 5.84% now, according to Curinos data, so you'll want to aim for an account that delivers a yield in that ballpark. But rates aren't everything. You want an account that charges few fees, offers great customer service and has a track record of being a stable institution. Savings yields are variable and can change depending on economic conditions or a bank's particular financial need. Usually rates are influenced by the federal funds rate, meaning that a bank tends to raise or lower its rates along with the Fed. Online banks and credit unions tend to offer the best yields because they can pass along savings from low overhead while also striving to attract new customers.
