The younger generation is taking a more cautious approach to college tuition, according to the nonprofit College Savings Foundation. When asked if they would take on debt to cover college bills, only 11 percent of the high school sophomores, juniors and seniors who participated in the survey said yes.
That’s down significantly from 20 percent just last year. Seventy-nine percent of the respondents said costs are a factor on college choice, with 39 percent saying high costs caused them to change their path and enroll in state schools, community colleges and vocational and career schools.
Fifty-four percent have already taken jobs to earn money for higher education, and 85 percent said they would work during college, with 20 percent planning on holding a full-time job. As these kids are well aware, the total amount of student debt stands at $1.4 trillion.
Monday, June 19, 2017
Friday, June 16, 2017
Happy Father's Day!
Americans will spend a record amount on Father’s Day gifts this weekend,
a survey from the trade association National Retail Federation
found, hitting a 15-year high of $14.3 billion. Some 77 percent of Americans
celebrate Father’s Day, and the amount of money
consumers spend on the holiday has increased each year consistently
since at least 2007.
The average American is now spending $134.75 on gifts, up from $125.92 last year. On the other hand, dads would increasingly prefer to spend time with their kids, rather than a pair of socks or the usual tie.
The number of people opting to give a special outing such as dinner or brunch is at 48 percent, up 5 percent from 2007. Now, 27 percent of dads say they would enjoy an “experience” gift, and 25 percent of shoppers plan to buy a ticket to a concert or a sporting event for the holiday, up from 22 percent last year.
The average American is now spending $134.75 on gifts, up from $125.92 last year. On the other hand, dads would increasingly prefer to spend time with their kids, rather than a pair of socks or the usual tie.
The number of people opting to give a special outing such as dinner or brunch is at 48 percent, up 5 percent from 2007. Now, 27 percent of dads say they would enjoy an “experience” gift, and 25 percent of shoppers plan to buy a ticket to a concert or a sporting event for the holiday, up from 22 percent last year.
Thursday, June 15, 2017
The Fed Raises Rates
As expected, the Federal Reserve raised its benchmark Fed Funds rate yesterday, to a range of between 1 percent and 1.25 percent. According to the so-called dot plot of forecasts, released at the same time, they’re still projecting one more increase this year, making three total in 2017.
The Fed also released its updated economic projections, and they are all very slightly better than the last set. The Fed members lifted their projected growth in gross domestic product this year to 2.2 percent at the end of 2017 from March’s forecast of 2.1 percent.
The projected unemployment rate was lowered to 4.3 percent from 4.5 percent. And the Fed’s preferred inflation measure is expected to come in at 1.6 percent at the end of the year, down from 1.9 percent.
The Fed also released its updated economic projections, and they are all very slightly better than the last set. The Fed members lifted their projected growth in gross domestic product this year to 2.2 percent at the end of 2017 from March’s forecast of 2.1 percent.
The projected unemployment rate was lowered to 4.3 percent from 4.5 percent. And the Fed’s preferred inflation measure is expected to come in at 1.6 percent at the end of the year, down from 1.9 percent.
Tuesday, June 13, 2017
What Worries Investors?
Investors are more likely to say they worry about current geopolitical matters harming their investments than worry about harm from the economy, according to the latest Wells Fargo/Gallup Investor and Retirement Optimism Index. When asked about possible threats to the U.S. investment climate in the coming year, three-quarters of investors were very or somewhat worried about the impact of the various military and diplomatic conflicts happening around the world.
The domestic political climate ranked a close second at 69 percent. The overall performance of the economy sparked far less concern, with about half, or 49 percent, saying they are very or somewhat worried.
The latest Investor Optimism index now registers at plus 124, down slightly from plus 126 in February. This marks the first time since the first quarter of 2016 that the index did not improve.
The domestic political climate ranked a close second at 69 percent. The overall performance of the economy sparked far less concern, with about half, or 49 percent, saying they are very or somewhat worried.
The latest Investor Optimism index now registers at plus 124, down slightly from plus 126 in February. This marks the first time since the first quarter of 2016 that the index did not improve.
The FAANG Crash
The so-called FAANG stocks have been leading the market much of the year, but the past two days have been pretty rough for them. While tech stocks have been dropping, Facebook, Apple, Amazon, Netflix and Google parent Alphabet have had the most dramatic falls of all. Over the last two trading days:
- Facebook has dropped 4.1 percent
- Apple has dropped 6.2 percent
- Amazon has dropped 4.5 percent
- Netflix has dropped 8.7 percent
- Alphabet has dropped 4.2 percent
Monday, June 12, 2017
The Charitable Role of Women
One way in which women approach their finances differently from men is in their charitable giving. According to the recent Woman and Giving survey released by Fidelity Charitable, women are more spontaneous, engaged and empathetic. Half of the women
interviewed say they give in the moment rather than as
part of a formal giving strategy, as opposed to just 40 percent of men.
Woman-headed households are more likely to give to charity than male-headed households. At nearly every income level, women donate almost twice as much as men, but women in the top 25 percent of permanent income give 156 percent more than men in that same category.
Boomer women tend to be more confident and strategic in their philanthropy. Seventy-two percent of boomer women are satisfied with their philanthropy, compared with just over half of Millennial women.
Woman-headed households are more likely to give to charity than male-headed households. At nearly every income level, women donate almost twice as much as men, but women in the top 25 percent of permanent income give 156 percent more than men in that same category.
Boomer women tend to be more confident and strategic in their philanthropy. Seventy-two percent of boomer women are satisfied with their philanthropy, compared with just over half of Millennial women.
Friday, June 9, 2017
The Nasdaq's Records Record
The Nasdaq Composite Index finished at another record high on Thursday, marking its 38th all-time closing high in 2017. That's the highest number of records in a single session for the equity gauge since 1999, according to WSJ Market Data Group.
On a year-to-date basis, the Nasdaq has registered its most all-time highs since 1986. Over the first part of that year, the index posted 48 closing records by June 8.
You might think we're on a pace to smash the all-time record of 62 record closes, set way back in 1980. But markets don't work with that much regularity. In 1986, after those 48 closing records by June 8, there were only seven more left the rest of the year..
On a year-to-date basis, the Nasdaq has registered its most all-time highs since 1986. Over the first part of that year, the index posted 48 closing records by June 8.
You might think we're on a pace to smash the all-time record of 62 record closes, set way back in 1980. But markets don't work with that much regularity. In 1986, after those 48 closing records by June 8, there were only seven more left the rest of the year..
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