It’s important for all students to build a solid foundation in managing their finances, said Sara Wilson, director of product innovation at Student Connections, an organization that helps students overcome financial barriers.

“You have to consider the financial decisions you make in college because they impact what your financial security is going to be once you enter your first job,” Wilson said.

If you’re starting college this fall or you’re currently a student, here are some expert recommendations:

Start building your credit

College is the perfect time to start building your credit score, said Courtney Alev, consumer financial advocate at Credit Karma. A credit score is a mathematical formula that helps lenders determine how likely you are to pay back a loan. Credit scores are based on your credit history and range from 300 to 850. A low credit score makes it more complicated or more expensive to obtain car loans, mortgages, credit cards, auto insurance, and other financial services.

“College is an ideal time to start building a credit report, because the earlier you start, the more time you have for that credit to build and then work in your favor when you eventually need it, whether it’s for a loan or an apartment,” Alev said.

Alev recommends starting your credit card journey with secured credit cards. These credit cards are opened with a one-time deposit that serves as collateral. This first deposit is usually returned when the user closes the account with zero balance or when they move to an unsecured credit card with the same bank. Another starting option is student credit cards, which are easier to qualify for and tend to come with lower credit limits.

Regardless of the type of credit card you open, the No. 1 goal is to only spend what you can afford to pay off each month, Alev said.

Budget as much as you can

During college, you might have multiple sources of income, whether from a part-time job, a financial aid stipend or family support. Having multiple or irregular streams of income might make it difficult to manage your finances, but budgeting is still a crucial step toward achieving financial stability.

You can budget by using an app, creating a spreadsheet or simply writing your expenses down on paper. No matter the format, it’s important for your budget to include your earnings and spending each month. Having a specific financial goal in mind can help you stay motivated to budget.

“Budgeting is simply creating a plan to get what you want with your money,” Wilson said. “Figuring out what you want, then the plan that you need to follow to get there.”

To help juggle multiple sources of income, students should divide their monthly bills by four so they have a target for the amount they need to set aside each week, said Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance, a financial wellness service.

For example, if rent is due on the first of the month and it’s $1,000, that means you need to save $250 each week. Dividing your bills can help you manage your money when your income is inconsistent throughout the semester.

Start saving

While it might be difficult to earn extra income while you’re in college, creating an emergency fund can save you a headache down the road. Many students can get excited about the idea of investing, but before diving fully into it, Alev recommends that you have a savings cushion.

“The power of that compounding interest and the growth of the economy can really pay off over time, and it’s so important, but an emergency fund is going to serve your immediate needs,” Alev said. She suggests that you aim to have enough savings to cover rent and other essentials for a few months before starting to invest.

Talk about money with your friends

One of the most exciting aspects of college is the new friends you meet. As you’re building new friendships, Bryan-Podvin recommends that you practice open communication about your financial journey.

“It can feel really hard to say ‘I can’t afford that or that’s not a priority for me,’” Bryan-Podvin said.

Being transparent about your finances can help you avoid feeling pressured to spend above your means.

Bryan-Podvin recommends that you clarify your spending priorities to make it easier to avoid overspending. For example, if you pay for a gym membership because it makes you feel better, keep thi

s expense in mind when you have to say no to ordering takeout with your roommates.

Have a plan for your student loans

While paying back student loans begins after graduation, it’s crucial that you have a plan while you’re still in college. Having a plan includes knowing how much you’re borrowing each semester, what your expected total repayment amount is and how much your monthly payments will be once you graduate.

“As long as you understand what you’re getting into and you’re making a plan for how to navigate and manage it, you’re an informed consumer of that debt,” Wilson said.

How much you borrow in student loans will affect your financial life after graduation, so it’s crucial that you don’t put off understanding the cost of the loans.

Take advantage of the resources that your school provides

Universities typically have a number of resources, so it’s best to take advantage of them while you’re in school, said Phil Schuman, executive director at the Higher Education Financial Wellness Alliance.

“The nice thing about the system that you have on your campus is the people aren’t going to judge you,” Schuman said. “Their job is to help you figure out what the solution is to your question, and they’re going to point you in the right direction.”

Whether your question is about financial aid or budgeting, making sure you’re tapping into the free resources on campus can help smooth your financial journey. You can typically find resources at your school’s library, student life office or recreation center.

Don’t panic if you make a mistake on your financial journey

Mistakes happen to everyone, not only students. But what is important is that you know how to cope when you make a mistake, Schuman said.

Managing your finances is a learning process that will continue well beyond your college years. But starting your journey in college can help you kickstart that learning process.

“Mistakes will happen,” Schuman said. “Give yourself grace. Nobody is perfect when it comes to their finances, so don’t feel like you have to be as well. Talk to somebody, acknowledge it, and then figure out what you can do moving forward to right the wrong next time.”

Those who receive Supplemental Security Income checks can expect two checks in July instead of one, but that will mean no checks in the month of August. This is because Aug. 1, the day the check would usually be scheduled, falls on a Saturday.

Rules state that if the first of the month falls on a holiday or weekend, the Supplemental Security Income checks are delivered the previous weekday.

Therefore, SSI recipients will get their August check on July 31. This also means they will not receive a check in the actual month of August.

The next check will come in Sept. 1 for that month.

For Social Security recipients who do not receive SSI, the payment date depends on your date of birth:

• If you were born between the 1st and 10th of the month, you will receive your payment on the second Wednesday of the month.
• If you were born between the 11th and 20th of the month, you will get your payment on the third Wednesday of the month.
• If you were born between the 21st and 31st, you will receive your money on the fourth Wednesday of the month.

The calendar quirk comes amid a number of changes for recipients this year.

Among the key adjustments are increases in monthly payments as well as Medicare Part B premiums, and higher income limits for those working while receiving benefits.

The order is intended to help more people gain access to retirement plans before next year, when the federal government will start matching retirement contributions made by lower-income workers.

That new matching contribution, known as the Saver’s Match, comes from 2022 legislation passed under Democratic President Joe Biden. Starting in January, it will offer a match of up to $1,000 for workers who make less than $35,000 a year.

Trump’s order is meant to help make the match available to roughly 50 million people who do not have retirement plans offered by their employers. The Republican president directed the Treasury Department to launch TrumpIRA.gov, where workers will be able to compare private-sector retirement plans.

“For millions of Americans who lack employer-sponsored plans, this will be really revolutionary, because they’ll be covered,” Trump said at an Oval Office signing ceremony.

He is not offering a new government retirement plan but helping match workers with existing plans from private companies.

Details of the order were first reported by the news outlet Semafor.

Trump discussed the idea during his State of the Union address in February, when he noted that about half the people in the country do not have access to employer-provided retirement plans with matching contributions.

“To remedy this gross disparity, I’m announcing that next year my administration will give these often-forgotten American workers — great people, the people that built our country — access to the same type of retirement plan offered to every federal worker,” Trump said.

The Saver’s Match program will offer a maximum match of $1,000 for single filers and $2,000 for married couples who file jointly. The maximum will be limited to single filers earning less than $20,500, with smaller matches offered for those earning up to $35,500. It applies to contributions made toward 401(k) plans, IRAs and Roth IRAs.

Trump said he wants to take the match “to the next level” by asking Congress to expand it to those with incomes higher than $35,000 a year. Kevin Hassett, director of the White House’s National Economic Council, said many middle-income earners also lack access to employer retirement plans.

“We’re working with Congress to significantly expand this program and are looking forward to legislation this year,” Hassett said at the ceremony.

When enhanced federal subsidies expired at the end of 2025, a lot of people buying their own health insurance on the state and federal exchanges saw their expected monthly rates jump. To keep costs down, many switched to a high-deductible health plan. These plans offer lower monthly payments, but in exchange, patients can face steep out-of-pocket costs when they need care.

The plans are pretty common. In 2023, 30% of people who got insurance through their employer had a high-deductible plan, up from only 4% in 2006.

Madison Burgess, a teacher in San Diego, gets health insurance through her teaching job. But when she investigated adding her husband to her plan, it was just too expensive, so she started shopping on the exchange for a cheaper option for him.

The longer she scrolled through the plan options, the more overwhelming it felt. Insurance jargon made it hard to tell what her family would owe if her husband got sick.

“I didn’t know what a deductible was, so I just went with what was cheap, and now I have regret,” she said.

In exchange for that lower monthly premium payment, her husband’s coverage won’t kick in for most care until they’ve paid $5,800 in medical bills. Burgess didn’t know that the deductible must be met before insurance picks up part of the tab.

Deductible:

The amount you as the patient have to pay before insurance picks up part of the tab

Premium:

The monthly bill for your policy, paid to the insurance company

How do you prepare for thousands of dollars in upfront costs? One option is a health savings account, or HSA, which lets you save pretax money and is now available to people enrolled in lower-tier state and federal exchange plans, including bronze and catastrophic coverage. These plans generally have the lowest premiums on the exchange but the highest out-of-pocket costs when you need care.

Burgess had chosen a bronze plan and didn’t know HSAs were an option.

“I’ve never thought about having to put money away for a deductible,” she said.

Burgess and others are often more worried about socking away money for unexpected car and house repairs or vet bills.

If, like Burgess, you chose cheaper health coverage for this year only to discover you’re on the hook for meeting a high deductible, these tips can help you prepare.

1. You might qualify for an HSA and not know it.

If you’re enrolled in a bronze or catastrophic plan, you qualify to open a health savings account. Think of it as a medical piggy bank with tax perks. You put in pretax money, which lowers your taxable income. The money grows tax-free, and when you spend it on qualified medical expenses, those transactions are also tax-free. That’s what people call a “triple tax advantage.”

These accounts build a cushion for future health costs, such as doctor visits, prescriptions, and even products like over-the-counter medicine, tampons, and sunscreen.

The money typically can’t be used for monthly premiums, but the account is yours to use for qualified medical expenses for yourself, your spouse, or your dependents anytime in the future. The money in the account is yours, even if you change jobs or health plans.

An HSA is not the same as a flexible spending account, or FSA. FSAs are tax-advantaged, too, but are offered only through employers. The money expires annually and you lose any remaining money when you leave that job.

2. HSA-curious? Here’s how to open one.

You open a health savings account through a bank or other financial institution. The institution will issue you a debit card so you can make purchases from the HSA.

You can open an HSA at any point during the year as long as you’re covered by an eligible plan. You can choose where to open the account, but be sure to check for any fees financial institutions charge and shop around.

If you get insurance through your job, your employer may require you to use a specific IRS-approved company.

Many people decide they can’t afford to contribute to an HSA. For some households, the desire to set aside money for medical expenses competes with the need to pay rent and buy groceries.

But there’s a detail that can make it feel more manageable. Contributions don’t have to be large. Just a few dollars a month can get you started.

There is, however, a limit. The IRS sets an annual cap on how much you’re allowed to contribute to an HSA. In 2026, an individual is limited to $4,400, or $8,750 for a family plan. Under that ceiling, the amount is up to you.

3. Preventive services should be covered at no cost to you.

All plans sold on marketplaces must cover certain preventive services at no cost to the patient as long as the care is provided in-network. Those services include routine immunizations and cancer screenings.

Beyond preventive care, understanding what different services cost can help you decide which type of medical appointment works best for your health needs and your wallet. For example, some plans charge less for a telehealth visit than to see your primary care doctor in person.

Check out your summary of benefits for more details.

4. Seek care early in the year.

Most deductibles reset on Jan. 1. Scheduling appointments or surgeries early in the year can be strategic if you discover a condition that requires ongoing care. If you can afford it, meeting your deductible sooner can make the rest of the year significantly cheaper, said Caitlin Donovan, a senior director at the Patient Advocate Foundation.

5. Consider paying cash instead of spending down your deductible.

Some hospitals, clinics, or other providers offer cheaper prices if you pay cash. You have the right to an itemized estimate and explanation of how much a health service would cost if you paid out-of-pocket. Ask for the estimate before you get care. Then, compare that price with what your insurance company tells you it would cost if you used your insurance. If you decide to go with a cash payment, you’ll need to pay while you’re still at the doctor’s office, before charges get submitted to your insurance company.

Paying cash may save you money, but the amount you pay generally won’t count toward your deductible or out-of-pocket maximum.

“If you don’t think you’re ever going to hit your deductible — you’re that young invincible, and your deductible is $10,000 — negotiate the cash price,” Donovan said.

6. On an ACA plan? Update your income and use an HSA to avoid a tax surprise.

If you’re on an ACA plan and you’re eligible for subsidies, be aware: If your earnings change and you don’t update your marketplace application, you could owe thousands of dollars at tax time. The fix is simple. Report raises, new jobs, or side gigs as they happen. If your income goes up, stashing money in an HSA can help because the money you put in the account doesn’t count toward your taxable income.

As soon as you report an increase in your income, that could mean higher premiums (if you no longer qualify for the same subsidy), but experts say it’s better to pay now than owe a big bill that you have to pay all at once.

“One of the biggest problems I see is someone is newly unemployed and they sign up for coverage, they say that they’re not making any money, and then eventually they get a job and don’t report it, and then they have this huge tax bill at the end,” Donovan said.

She advises updating your marketplace profile as soon as your income changes, which could newly qualify you for Medicaid or a plan that contributes more toward your medical bills.

Taylor Cook contributed to this report.

Health Care Helpline helps you navigate the health system hurdles between you and good care. Send us your tricky question and we may tap a policy sleuth to puzzle it out. Share your story. The crowdsourced project is a joint production of NPR and KFF Health News.

Cynthia Chen is the founder and CEO of Kikoff, a credit building app. After years working in public finance, Chen founded Kikoff out of frustration with the existing credit solutions on the market.

“Working in consumer’s public finance allowed me to witness firsthand how many people got declined for loans and insurances because of poor credit,” Chen said. “One out of three American adults did not have a credit score above 600 — and life would be very expensive and difficult without a decent credit score.”

Chen and her team at Kikoff created an app that provides a full suite of credit building solutions to users who purchase a monthly subscription plan, with plans starting at $5 a month. Kikoff’s services include credit monitoring, debt negotiation, subscription management and more. Chen says Kikoff has helped over 2 million Americans build credit, cumulatively raising credit scores by almost 100 million points.

“We very often come across stories from users where they say, ‘oh, I’m so glad that I got a higher score and got a good credit card or got my auto loan approved,'” Chen said.

With tax day approaching, Kikoff is encouraging Americans to dive deeper and “spring-clean” their credit.

“This is the time of the year where people do [spring] cleaning, and also where people get their tax refunds, if you have a refund due,” Chen said. “It is a smart idea to use the tax refund to build a brighter future, including financial wellness by doing things like credit building.”

While combing through your credit may sound daunting, it doesn’t have to be.

How to “spring-clean” your credit

Chen advises to start by doing a full scan of your credit reports from Equifax, Experian, and TransUnion to see whether information is accurate and consistent, or if there are any accounts you don’t recognize. It’s not uncommon for an account that’s not yours to appear on your credit, usually due to sharing a name with someone.

“It had happened to me — I saw a credit card on my credit report that belonged to another person with the same name,” Chen said. “Thank God the person was not delinquent on the credit card. Otherwise, that person could have ruined my credit.”

After making sure everything checks out, look into and address any “problem” accounts like collections, Chen says.

“Try to find out whether the collection agency will be amenable to a settlement at a much smaller amount than what you were usually owed. They often are, because they buy your bad debts from your lenders at a deep discount. So you may want to use some money to settle some of the collections so that you have a much cleaner report.”

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After tackling any marks on your credit that you can, Chen says to focus on building positive credit.

“Invest in something like rent reporting, if you are a renter, and then have that continuous positive payment history help improve your credit over time. That’s how I would do it,” she said.

Rent and bill reporting, which allows users to earn credit for the monthly rent and bills they would be paying anyway, is available through Kikoff and many other credit building apps.

Building good credit is beneficial for reasons other than raising your chances of loan approval. It’s also a great way to stand out when trying to appeal to a potential landlord, employer, or in Chen’s words, even a partner.

“Some people during dating, before they go into a deeper relationship, may ask the person they’re dating about their credit. Because even in a romantic relationship, people care about how financially responsible the other person is. Some of our customers mentioned that to us.”

The wealth gap in the U.S. is at a modern-day high.

The richest households have been rapidly multiplying their wealth over the past year. They’re buying real estate and plowing money into the stock market, including high-risk, high-reward investments. The returns have them sitting comfortably, as new tax benefits help protect their gains.

People with a tighter budget, on the other hand, have been struggling to get ahead. Prices for grocery store staples are going up, job opportunities are decreasing and once-stable careers, like those in manufacturing, are shrinking. The idea of doing better than your parents, for many, feels increasingly out of reach.

Here’s a picture of what’s going on:

The rich are getting richer … and others can’t keep up

How is the 1% growing its wealth? By investing heavily in the stock market

One reason many people feel squeezed: A dollar doesn’t go as far as it used to

“I went through all the savings I had when I wasn’t working, and what I’m doing now, it just really doesn’t leave us much room to save. We can’t really take our son out to go to the movies or family trips.”

– Jessica Miranda, a high school nurse who lives in El Paso, Texas

Costs are rising everywhere, from the grocery store…

…to the housing market…

…to electric bills

“I’ve got an MBA, I’ve got 20 years of experience across my resume, and I’m being told that I need to submit my resume to ChatGPT for optimization to get an interview. It’s like this ‘Black Mirror’ environment.”

– Gary Keffer, a freelancer in Nashville, Tennessee, who was laid off as a VP of strategic marketing

Unemployment is on the rise, too…

…while job openings nationwide are falling…

…and hiring is strong in health care, but not everywhere else

“I grew up in a relatively middle-class family. Things that I did growing up, I can’t do them now. My daughter’s asking, ‘Are we going to Cape Cod again this summer, Mommy?’ I’m like, not this summer. I don’t think I can afford it.”

– Elizabeth Ostendorp, a teacher in Morristown, New Jersey

All of that adds up to concern about the economy

This story originally appeared on NBC News. See the full story with additional assets here.

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Thomas Nitzsche, a financial educator at Money Management International, said the increase in reports of harassment from debt collectors could be linked to the new administration, which has tried to gut the federal government’s consumer watchdog agency since President Donald Trump took office in January 2025.

“Debt collectors may feel that the current administration is softer on regulations,” he said. “The Consumer Financial Protection Bureau has been virtually eliminated, so third-party debt collectors might feel more emboldened for bad behavior.”

To protect yourself from scammers and make the most informed financial decisions, it’s essential to know what to expect when you answer a call from a debt collector and how to tell if it’s real.

Here’s what you need to know:

What to do if you get a call from someone claiming to be a debt collector

Getting a call from someone claiming you owe money can feel overwhelming. But, Nitzsche said the first thing to do when a debt collector calls is simple: Stay calm.

If the person on the other end of the phone refuses to provide written verification of the debt, demands payment via wire transfer or pre-paid cards, threatens arrest or legal action or is asking about debt you don’t recognize or owe, the call could be a scam.

Be sure to always ask the caller to send written proof of the debt, and contact your original creditor to verify the information. With scams on the rise, it’s important to double check all details and even if the call is legitimate, be sure to understand your rights to avoid feeling pressured or misled.

Here’s what information debt collectors must provide

Debt collectors are required to give you information about the debt they are calling about during the first communication or within five days of the first contact. This information must include:

• The collector’s name and mailing address.
• The name of the creditor you owe to.
• The amount you owe including interest, fees, payments and credits.
• Information on what to do if you believe the debt is not yours.
• Information about your debt collection rights.

What debt collectors cannot do

Federal rules limit how and when debt collectors can contact you. In general, collectors cannot:

• Contact you before 8 a.m. or after 9 p.m. unless you agree.
• Contact you at work if you tell them you’re not allowed to get calls there.
• Email or text you if you ask them to stop.
• Call you more than seven times within a seven-day period.
• Call you again within seven days after speaking with you about a particular debt.
• Private message you on social media if you ask them to stop.

A rise in reports of collectors violating the rules may stem from weaker government oversight.

Sen. Elizabeth Warren, the senior Democrat on the Senate Banking Committee, has accused the Trump administration of costing families billions of dollars as it tried to dismantle the Consumer Financial Protection Bureau.

According to a report released by Warren’s office in February, the bureau has ended enforcement actions, dropped settlements and rescinded rules. The changes cost Americans at least $19 billion, the report charges.

The Consumer Financial Protection Bureau did not respond when asked about the rise in the number of debt collectors disregarding rules and regulations, as well as the increase in harassment claims.

Your debt repayment options

The key to handling debt collector calls, according to Nitzsche, is to become an expert on your personal financial situation.

“There’s a lot of misinformation around debt solutions, what’s possible and what’s not,” he said. Seeking help from experts can help you better understand your options.

Often, if you reach out to your creditor, it may lower your interest rate or help you create a manageable payment plan. Many nonprofit credit counseling agencies like Money Management International, American Consumer Credit Counseling, and GreenPath Financial Wellness offer free or low-cost advice that can assist you in budgeting or making a debt management plan.

If you prefer a more private option, Nitzsche suggests anonymous debt groups on platforms like Reddit or even asking for advice from ChatGPT.

Most 401(k) and similar retirement savings plans like Individual Retirement Accounts (IRAs) allow homebuyers to withdraw or borrow a limited portion of their nest egg for making a cash payment toward the final purchase price, but there can be hefty tax penalties and other short- and long-term financial impacts to consider.

“Planning is the name of the game here,” Stephen Kates, a financial analyst at personal finance website Bankrate, said. “Running the numbers, having a solid understanding of what you can financially cover and financially manage is going to be really important before you step into this.”

Years of inflation, high mortgage rates and skyrocketing home prices have made buying a home a major hurdle for many Americans. At the same time, the S&P 500 stock market index has had only five down years between 2005 and 2025, which has helped juice the value of retirement savings accounts.

At Fidelity Investments, the average 401(k) balance based on 24.8 million accounts was $146,400 as of Dec. 31, a whopping 66% gain over a 10-year period, according to the company. And the average IRA balance based on 18.9 million accounts stood at $137,095 at the end of December, a 51% gain since the last day of 2015.

Still, many savers may have a ways to go before their accounts grow enough to fund a home down payment. The median U.S. down payment on a home in December stood at $64,000 , according to an analysis by Redfin.

Compare that to the median balance for 401(k) plans and IRAs as of Dec. 31: $34,400 and $10,476, respectively, Fidelity said. (Median figures tend to skew lower than the average because workers who recently enrolled in a retirement savings plan haven’t had time to build up a balance.)

Balancing between homeownership and saving for retirement

Last year, it took the typical U.S. household seven years to save for a down payment on a home, down from a peak of 12 years in 2022 but still roughly double the time it took before the coronavirus pandemic, according to an analysis by Realtor.com.

Some 46% of all homebuyers between July 2024 and June 2025 relied on savings to fund their down payment, according to the National Association of Realtors. That includes 59% of first-time buyers. Others got financial help from friends or relatives, or used money from an inheritance, proceeds from selling stocks or bonds.

Raiding one’s retirement savings, however, wasn’t a popular choice. All told, 6% of all homebuyers and 11% of first-time buyers tapped their 401(k) or pension to fund their down payment, while another 3% took funds from an IRA account.

Those who elect to take some of their retirement savings to buy a home need to consider how it would affect their finances once they retire.

“Most likely, somebody who’s taking money out of the 401(k), they’re going to have to retire later than they otherwise would have, especially if they’re taking a relatively large portion of their balance,” Kates said.

Know your plan’s rules and limits

Most 401(k) plans allow participants to take out a loan toward the purchase of a primary residence, but there may be different requirements, for example, on how long the borrower has to pay it back.

The IRS also has rules that govern 401(k) plans. The agency limits loans to 50% of a borrower’s vested account balance or $50,000, whichever is less.

Savers with less than $10,000 in their plan can borrow the full amount, if their plan sponsor allows it.

Other factors to consider

Weigh the tradeoffs before taking out a loan against your retirement savings.

The funds you borrow need to be paid back, so you’ll have to budget for that payment, in addition to the costs that come with homeownership: mortgage payment, homeowners’ insurance, taxes, and so on.

However, the biggest risk with a 401(k) loan is what happens if you lose your job before paying it off.

In such a scenario, the unpaid balance becomes a distribution that the borrower has to report as taxable income. It’s also subject to an additional tax of 10%, unless the borrower is at least 59 years and six months old.

And, if that wasn’t painful enough, your retirement savings takes a hit because the loan isn’t getting paid back.

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The hardship withdrawal option

The IRS permits 401(k) savers to make what’s known as a hardship withdrawal to help them cover specific financial needs, such as medical or funeral expenses, tuition and buying a principal residence.

This isn’t a loan, so you don’t have to pay it back, but it comes at a cost to your retirement savings. And if you are more than six months away from turning 60, you will face a 10% tax penalty on the funds, which are also taxable as regular income.

“The best option of the two that are available — either the loan or the hardship withdrawal — the loan is the more preferable option, because you can borrow from yourself, you’re going to pay yourself back with interest,” Kates said.

What about IRAs?

IRAs operate differently than 401(k) plans. They don’t allow loans but do permit savers to withdraw up to $10,000 without a 10% tax penalty, even if they’re younger than 59 and a half, as long as the funds are going toward buying a home and the saver is a first-time homebuyer.

As with 401(k) withdrawals, one must weigh the benefits of accessing the funds against the impact it will have on how much they have to live on when they retire.

Regardless of the type of retirement plan, aspiring homebuyers should consult with a financial planner and their retirement plan sponsor before making any decisions.

A provision of Trump’s tax legislation, Trump Accounts are meant to give $1,000 to every newborn, so long as their parents open an account. That money is then invested in the stock market by private firms, and the child can access the money when they turn 18.

A U.S. Treasury event Wednesday brings together an assortment of politicians and celebrities — from Texas Republican Sen. Ted Cruz to rapper Nicki Minaj — to discuss the program and its potential impact on the economy. Backers of Trump Accounts have said they’re a way to help children from low-income households build wealth.

Here’s what you need to know about Trump Accounts and how to claim them.

What is a Trump Account?

It’s a new savings tool where money is invested in the stock market on behalf of a child. The child can’t access the money until they turn 18 and can only use it for specific purposes, such as paying tuition, starting a business or making a down payment on a home.

After a parent opens an account, the U.S. Treasury will contribute $1,000 for newborns. Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees.

Parents can contribute up to $2,500 annually in pretax income, much like they do for retirement accounts. Parents’ employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, but contributions from governments and charities don’t count toward that total.

Who gets $1,000?

As part of the initiative’s launch, parents of older children are also encouraged to open accounts, but they won’t get the $1,000 bonus. That money is only reserved for babies born during the calendar years of the Trump administration.

To qualify for the $1,000 seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. Any parent can open an account for a qualifying child, regardless of the parent’s immigration status.

It’s important to note that the child won’t be able to access the money until they turn 18, except in rare circumstances, so it can’t help with immediate expenses. And disbursements from the accounts will be subject to taxes.

What about older children?

Children born before 2025 won’t qualify for the $1,000 incentive, but parents can still open accounts for them as long as they’re under 18. Parents can still invest up to $2,500 pretax for those kids.

In December, billionaires Michael and Susan Dell announced a $6.25 billion donation that will allow some children who are 10 and under to receive $250 in seed money if their parents open an account. That money is reserved for kids who live in ZIP codes with a median family income of $150,000 or less and who won’t get the $1,000 seed money from the Treasury.

A few weeks later, hedge fund founder Ray Dalio and his wife Barbara pledged $75 million for kids under 10 in Connecticut, where Dalio lives. That would amount to $250 for 300,000 children in qualifying ZIP codes. Those large contributions are part of an effort by the U.S. Treasury — dubbed the “50 State Challenge” by Secretary Scott Bessent — to encourage wealthy philanthropic donors to pitch in.

Other corporations participating in the program include Uber, MasterCard, BlackRock, Visa and Charles Schwab, according to the Trump Accounts website.

How do I open a Trump Account for my kids?

The accounts won’t be open for contributions until July 2026, but parents of eligible kids can sign up using Form 4547 from the Internal Revenue Service. Parents can fill out the form when filing taxes this year or when the administration opens an online portal this summer, according to the Trump Accounts website.

Registering for a Trump Account is required for a child to receive the money. In May, parents who sign up will get information about how to finish opening the accounts.

What’s the idea behind the accounts?

Backers of the accounts say they want to introduce more people to the stock market and give even children born into poverty a chance to benefit from it. Supporters also say the accounts bolster capitalism at a time when openly socialist candidates are growing more popular.

About 58% of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned almost half the value of stocks in that same year.

Before Trump created the accounts, California, Connecticut and the District of Columbia were piloting “baby bonds” programs that are similar to Trump Accounts in some ways. Several other states, including Maryland, are weighing programs.

But those programs are targeted for youth growing up in poverty or foster care, plus children who lost a parent to COVID-19. Wealthier children don’t benefit. They’re also managed by the state, not private investment firms.

What do critics say?

Critics point out the accounts do little to help children in their early years, when they’re most vulnerable and most likely to be in poverty. The accounts, they say, also fail to offset cuts the Trump administration and congressional Republicans have made to other programs that benefit young people and their families, including food assistance and Medicaid. Republicans created the accounts in the same Trump tax bill that reduced spending for some of those programs.

And even with the contribution from the government, critics say the Trump Accounts will widen the wealth gap. Affluent families that can afford to make the maximum pretax contribution to the accounts will realize the greatest benefits. Poor families who can’t afford to set aside money for the accounts will benefit the least. Assuming a 7% return, the $1,000 in seed money would grow to roughly $3,570 over 18 years.

Tax deductions decrease the amount of taxable income you report, while tax credits lower your tax bill dollar for dollar. Both are valuable tools for minimizing what you owe.

When filing your return, you have the option to choose between taking the standard deduction or itemizing your deductions. To determine which benefits you most, calculate your total itemized deductions. Compare that amount to the standard deduction available to you. Selecting the higher of the two will result in the greatest tax savings.

If you are eligible for tax credits, you can claim them regardless of whether you itemize your deductions or take the standard deduction.

The IRS will start accepting returns on Jan. 26, and the filing deadline is April 15.

Standard tax deductions

Standard tax deductions have increased for the 2026 filing season, lowering the amount of taxable income for filers.

Here are the standard deductions under President Donald Trump’s tax and spending law, which he signed on July 4, 2025.

Taxpayers 65 and older can qualify for even larger deductions:

SALT deductions

The state and local tax deduction quadrupled from $10,000 to $40,000 for tax years 2025 through 2029 for incomes under $500,000.

Filers in high-tax states may be more likely to switch from standard to itemize deductions with this increase.

Itemized deductions also include:

• Medical and dental expenses, if expenses exceed 7.5% of adjusted gross income for the year. This applies only to expenses not compensated by insurance
• Interest on mortgage loans up to $750,000 ($375,000 for married filing separately)
• Casualty or theft losses in the case of a federally declared disaster

Child tax credit

Child tax credits for this year increased from $2,000 to $2,200 per qualifying child. It is available to all eligible taxpayers, whether they take the standard deduction or itemize their deductions.

To qualify for this tax credit, the child must:

• Be under 17 at the end of the tax year.
• Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or a descendant of one of these (for example, a grandchild, niece or nephew).
• Not provide more than half of his or her own support for the tax year.
• Have lived with you for more than half the tax year.
• Be claimed as a dependent on your return.
• Child must not have filed a joint return with another person (for example, their husband or wife) to claim any credits. Your child can file a joint tax return only to get a tax refund on tax withheld from their paycheck or estimated tax paid..
• Be a U.S. citizen, a U.S. national such as an American Samoan, or what the IRS defines as a U.S. resident alien, where you meet the tests for a green card or the substantial presence in the United States for the year.

To qualify for the full amount of the child tax credit for each qualifying child, your annual income cannot exceed $200,000 or $400,000 if filing jointly. If your income exceeds this, you may be able to apply for a partial credit.

Did you earn overtime or tips?

Income tax deductions for qualified tips and overtime are available for all eligible taxpayers. They are also available for self-employed individuals.

Tip deductions:

Overtime deductions:

If a typical wage is $10 and overtime is $15, only the additional $5 can be added to the overtime deduction.

Did you buy an American-made car in 2025?

A new tax deduction allows taxpayers to deduct up to $10,000 in interest paid on a qualifying auto loan for vehicles assembled in the United States.

To qualify, your income muse be less than $100,000 a year as a single filer or $200,000 a year for joint filers. This deduction is available whether you itemize deductions or take the standard deduction. .

A qualifying vehicle includes a car, minivan, van, SUV, pickup truck or motorcycle that underwent final assembly in the United States and has a gross vehicle weight rating of less than 14,000 pounds.

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Did you sell or trade crypto?

For tax purposes, digital assets are considered property and not currency. Any income from digital assets, like cryptocurrency or NFTs, nonfungible tokens, is taxable.

Reporting requirements have changed this tax season. The IRS now requires brokers to file a new form, Form 1099-DA, which is designed to help ensure that investors are accurately reporting crypto-related transactions.

Did you sell items on eBay, Etsy or Poshmark?

If you earn income through third-party apps or online marketplaces, those platforms are now required to issue Form 1099-K only if your total payments are over $20,000 and you completed more than 200 transactions on a single platform during the year.

However, even if you do not receive or are eligible for the 1099-K form, you are still required to report all taxable income earned on the platform.

Trump was not clear in his social media post Friday night whether a cap might take effect through executive action or legislation, though one Republican senator said he had spoken with the president and would work on a bill with his “full support.” Trump said he hoped it would be in place Jan. 20, one year after he took office.

Strong opposition is certain from Wall Street in addition to the credit card companies, which donated heavily to his 2024 campaign and have supported Trump’s second-term agenda. Banks are making the argument that such a plan would most hurt poor people, at a time of economic concern, by curtailing or eliminating credit lines, driving them to high-cost alternatives like payday loans or pawnshops.

“We will no longer let the American Public be ripped off by Credit Card Companies that are charging Interest Rates of 20 to 30%,” Trump wrote on his Truth Social platform.

Researchers who studied Trump’s campaign pledge after it was first announced found that Americans would save roughly $100 billion in interest a year if credit card rates were capped at 10%. The same researchers found that while the credit card industry would take a major hit, it would still be profitable, although credit card rewards and other perks might be scaled back.

About 195 million people in the United States had credit cards in 2024 and were assessed $160 billion in interest charges, the Consumer Financial Protection Bureau says. Americans are now carrying more credit card debt than ever, to the tune of about $1.23 trillion, according to figures from the New York Federal Reserve for the third quarter last year.

Further, Americans are paying, on average, between 19.65% and 21.5% in interest on credit cards according to the Federal Reserve and other industry tracking sources. That has come down in the past year as the central bank lowered benchmark rates, but is near the highs since federal regulators started tracking credit card rates in the mid-1990s. That’s significantly higher than a decade ago, when the average credit card interest rate was roughly 12%.

The Republican administration has proved particularly friendly until now to the credit card industry.

Capital One got little resistance from the White House when it finalized its purchase and merger with Discover Financial in early 2025, a deal that created the nation’s largest credit card company. The Consumer Financial Protection Bureau, which is largely tasked with going after credit card companies for alleged wrongdoing, has been largely nonfunctional since Trump took office.

In a joint statement, the banking industry was opposed to Trump’s proposal.

“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” the American Bankers Association and allied groups said.

Bank lobbyists have long argued that lowering interest rates on their credit card products would require the banks to lend less to high-risk borrowers. When Congress enacted a cap on the fee that stores pay large banks when customers use a debit card, banks responded by removing all rewards and perks from those cards. Debit card rewards only recently have trickled back into consumers’ hands. For example, United Airlines now has a debit card that gives miles with purchases.

The U.S. already places interest rate caps on some financial products and for some demographics. The Military Lending Act makes it illegal to charge active-duty service members more than 36% for any financial product. The national regulator for credit unions has capped interest rates on credit union credit cards at 18%.

Credit card companies earn three streams of revenue from their products: fees charged to merchants, fees charged to customers and the interest charged on balances. The argument from some researchers and left-leaning policymakers is that the banks earn enough revenue from merchants to keep them profitable if interest rates were capped.

“A 10% credit card interest cap would save Americans $100 billion a year without causing massive account closures, as banks claim. That’s because the few large banks that dominate the credit card market are making absolutely massive profits on customers at all income levels,” said Brian Shearer, director of competition and regulatory policy at the Vanderbilt Policy Accelerator, who wrote the research on the industry’s impact of Trump’s proposal last year.

There are some historic examples that interest rate caps do cut off the less creditworthy to financial products because banks are not able to price risk correctly. Arkansas has a strictly enforced interest rate cap of 17% and evidence points to the poor and less creditworthy being cut out of consumer credit markets in the state. Shearer’s research showed that an interest rate cap of 10% would likely result in banks lending less to those with credit scores below 600.

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The White House did not respond to questions about how the president seeks to cap the rate or whether he has spoken with credit card companies about the idea.

Sen. Roger Marshall, R-Kan., who said he talked with Trump on Friday night, said the effort is meant to “lower costs for American families and to reign in greedy credit card companies who have been ripping off hardworking Americans for too long.”

Legislation in both the House and the Senate would do what Trump is seeking.

Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., released a plan in February that would immediately cap interest rates at 10% for five years, hoping to use Trump’s campaign promise to build momentum for their measure.

Hours before Trump’s post, Sanders said that the president, rather than working to cap interest rates, had taken steps to deregulate big banks that allowed them to charge much higher credit card fees.

Reps. Alexandria Ocasio-Cortez, D-N.Y., and Anna Paulina Luna, R-Fla., have proposed similar legislation. Ocasio-Cortez is a frequent political target of Trump, while Luna is a close ally of the president.

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Seung Min Kim reported from West Palm Beach, Fla.

Early and routine home maintenance goes beyond fixing visible damage. It helps ensure a healthy living environment, extends the life of a home and can protect its long-term value, according to real estate professionals. Planning ahead for regular upkeep and for unexpected emergencies can reduce the risk of costly repairs later and help spread expenses more evenly throughout the year.

According to research by the U.S. Department of Energy and the Environmental Protection Agency, about three-quarters of existing homes are expected to still be in use in 2050.

“Maintaining the homes that we have is really essential to protecting our health and our well-being,” said Amanda Reddy, executive director of the National Center for Healthy Housing, an organization that researches and advocates for reducing housing-related health disparities.

Despite who owns the property, Reddy says, keeping residences dry, clean, pest-free, well-ventilated and safe is the goal, which can mean different types of maintenance depending on the type of home, where someone lives and the time of year. Here’s what experts say about home care and what tasks to put on the checklist this year:

Home care includes the big projects and the everyday decisions

On average, Americans spend about 90% of their time indoors, 70% of that time inside of a residence, according to the National Human Activity Pattern Survey.

“It’s not just that we spend time indoors, but at home. If you are older, very young, have health concerns, or work from home, it is likely more than that,” Reddy said, emphasizing the reason why home care is a valuable investment.

What many people think of maintenance includes addressing water and gas leaks, pest infestations, cracks and other major repairs, but home builders say not everything needs a professional and can include actions as simple as wiping counters and sweeping floors of food debris, opening windows for better ventilation or clearing out clogged filters and drains.

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Residents should also consider the needs of those living in the home, commonly used spaces such as kitchens, bathrooms and bedrooms, and typically neglected areas like attics and basements. Reddy says “anywhere we’re spending time” or often ignoring and possibly missing necessary repairs should be prioritized.

“At the end of the day, doing any preventative maintenance at all matters more than doing it perfectly or at exactly the right time,” Reddy said. “But timing can make a big difference. A lot of these tasks are seasonal or annual, and you’re not just going to do it one time. Homes are stressed differently by different times of the year, so seasonal maintenance helps us catch problems before they’re made worse by environmental stressors.”

Seasonal maintenance to plan for throughout the year

When it comes to maintenance, planning and preparing for anticipated and routine changes in the environment can help mitigate natural wear and tear on the exterior of homes and also create healthy conditions inside — where most people shelter from extreme weather events.

“What happens outside the house rarely stays outside the house. What’s outside gets inside, what’s inside builds up,” Reddy said, adding that fluctuating outdoor conditions put stress on appliances and systems at different times of the year. “For most people, the seasonal rhythm not only makes sense because of those stressors, it also just is more realistic and effective than trying to tackle a long, overwhelming checklist all at once.”

For example, experts say the best time to prepare for cold and wet climate, storms and other natural disasters is to address concerns before temperatures drop. Similarly, it is recommended that residents address systems in homes that work to reduce the effects of extreme high temperatures, dry and drought conditions and associated risks like wildfires and air quality in the offseason.

Professional guidance from home inspectors, builders and real estate agents says spring and summer tasks should focus on preparing for warmer weather. Experts recommend checking air conditioning systems, cleaning dryer vents to prevent fire hazards, testing sprinkler systems, tending to gardens and plants around homes’ exterior and inspecting appliances, electrical equipment and plumbing fixtures. Experts also say spring is a good time to clean and do any house projects that involve painting or remodeling since rain is unlikely to cause delays during that time.

In the fall and winter months, experts suggest focusing on temperature control and air quality measures as people tend to shelter indoors during incoming colder weather. American Home Inspectors Training guidance says check heating systems, clean air filters, make sure carbon monoxide detectors are working, seal air leaks, prioritize pest control, clean and repair roofs and chimneys, and inspecting drainage options in and around homes.

“New Year’s is a really good time to review and realign your financial goals overall,” said Erica Grundza, certified financial planner at Betterment, an investing and savings app.

When building your goals for 2026, Grundza recommends focusing less on the past and more on an optimistic, yet realistic, vision for the future. She recommends that you focus on reestablishing the “why” behind your approach to money and how you want to make it work for your life. This can be as simple as saving $10 each week in a savings account, or a bigger goal like saving to buy a house in the coming years. It’s all about your own journey.

The Associated Press spoke with people who are making financial resolutions for 2026. Here’s a look at what they’re planning and how you can draw inspiration for your own resolutions:

Making achievable plans

Resolutions can easily turn into unattainable goals that feel more like a dream, said MarieYolaine Toms, a coach and founder of Focused Fire, a financial coaching company. To avoid setting unrealistic expectations, Toms follows a “no resolutions” mindset and instead focuses on making an actionable plan.

“What I say every year is that I am not making resolutions, I’m making plans that can be tracked forward, traced back, and tweaked until completion,” Toms said.

Recently, Toms encouraged her clients to check their credit report with the three credit bureaus and, based on their credit reports, make an attainable plan to start a savings account. For example, adding $25 to their savings account every week.

Whether you’re trying to pay off debt or save for a vacation abroad, the first step towards making a plan can be creating a budget. When making a budget, it’s best to find a technique that works for you, whether it’s the classic 50/30/20 plan or another budgeting style.

If you’re building a budget for the first time, you can find some expert recommendations here.

Paying off debt

After losing her job as a magazine editor in September, Rachel Pelovitz, 33, had to take a closer look at her finances. Having acquired a significant amount of debt over the last few years due to her husband’s year-and-a-half-long unemployment, Pelovitz explored several options to pay it off. Ultimately, Pelovitz and her husband chose to sell their house and work with a debt consolidation organization.

“Rather than rely on getting more debt, we are currently selling our house,” Pelovitz said.

Pelovitz’s main goal for 2026 is to pay off half of her credit card debt. And, with some of the money from selling the house, start investing moderately.

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Building a savings account

For Jenni Lee, 27, this is going to be the year when she gets strict about building her savings account. While Lee considers herself generally good with money, over the last six months she has overspent and wants to rein it in. The long-term goal for her savings journey is for Lee to buy a house.

“I’m now in my late 20s, I’m starting to really think about where I pinch now so it won’t hurt later when I finally decide to purchase and own a place,” said Lee, a tech worker and lifestyle TikTok creator based in Chicago.

As she saves for her future home and possibly a trip to South Korea, Lee wants to cut unnecessary spending on clothing items and eating out.

Social media microtrends are a common influence on people’s shopping decisions, and this can lead to overspending. If you’re looking to avoid spending money on microtrends, you can find experts’ recommendations here.

Building an emergency fund

If you are in a position to do so, having multiple financial goals you’re working towards at the same time can be a great way to speed up your progress. For Worcester resident Melanie Duarte, 23, her New Year’s money goals include paying off her student loans and credit card debt while building an emergency fund.

“I made sure to include it in my budget, even if it’s something as small as like $50. I just want to make sure I still put something in (my emergency fund) so that it eventually multiplies,” said Duarte, who owns a marketing agency.

Duarte’s family didn’t speak openly about finances when she was growing up. But, since she opened her own business, Duarte has been slowly working on rewriting her relationship with money.

If you’re looking to start an emergency fund or create better habits while you save, you can read some experts’ recommendations here.

Finding balance

Finding a balance between saving for your long-term goals while also making sure you enjoy your money is important, but it can also be challenging. After the death of her grandfather just a few years after retirement, Tiana Stewart, 26, felt that he didn’t get to enjoy the fruits of his labor. So, this past year, Stewart decided to enjoy her life and travel.

“I do understand saving for retirement is important, but I also want to enjoy my life and the money that I work for at this time, especially being in my 20s,” said Stewart, who lives in Maryland.

But now, as she reflects on her financial future, Stewart wants to focus on paying off debt, saving, and investing. Having a healthy balance between enjoying life and saving for the future is what she wants to work toward.

For some, participating in budgeting challenges such as the no-buy year can be a great way to set boundaries on your spending and set aside money towards your financial goals. Many people start such challenges at the beginning of the year and commit to keep going until the end, but others start with a no-buy month.

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The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

During the holiday season, it’s common to set expectations high, which can easily lead to emotional spending.

Tariffs and persistent inflation are taking bigger bites out of budgets this year, with roughly 4 in 10 Americans dipping into their savings while shopping, according to an AP-NORC poll.

If you went a bit overboard this year and racked up some major credit-card debt, you’re not alone. The National Retail Federation projects holiday spending to hit an all time, surpassing $1 trillion.

Lynnette Khalfani-Cox, a personal finance adviser and founder of the Financial Influencer Network, says roughly 75% of Americans are living paycheck to paycheck and almost everyone has some form of debt — whether it’s credit card debt, student loans, auto loans, mortgages, or buy-now pay-later obligations.

“Frankly, as a nation, we’re up to our eyeballs in debt,” she said.

Known as the “Money Coach,” Khalfani-Cox understands that burden firsthand. Early in her career, she found herself with over $100,000 in credit-card debt, which she managed to pay off in just three years.

“The debt problem in America has only gotten worse,” said Khalfani-Cox, and even though most people have the best of intentions for paying off their debt, life gets in the way and the struggle is only growing.

If you found yourself overspending this holiday season, here are some steps to take to best manage your debt and put your best financial foot forward in the new year.

Ask for help

According to Khalfani-Cox, the first step when navigating debt is simple: don’t suffer alone.

“Don’t let shame, guilt, or negative emotions keep you from getting help,” she says. “You can go reach out to nonprofits, to professionals, to experts who can help you to manage it.”

Nonprofit organizations like Savvy Ladies offer no-cost guidance from certified financial planners. Khalfani-Cox also recommends reaching out to professionals or financial experts who can provide guidance throughout your process.

Take inventory of all your debt

Taking a comprehensive look at all your accounts to figure out just how much you owe can be daunting, but it’s necessary.

Khalfani-Cox compares paying off debt to losing weight. Sure, you can say in the new year you’re going to lose 5 pounds, but you can’t be successful until you step on the scale; otherwise, you’d never know when you’ve hit your goal. The same goes for paying off debt.

Knowing exactly what you owe – across credit cards, loans, and especially buy-now, pay-later plans — gives you a clear starting point. It also ensures you don’t miss due dates or get hit with added fees and interest.

Negotiate

According to a survey from Lending Tree, more than three in every four consumers receive a lower interest rate from their credit card issuer just by asking.

“They’re going to say yes, because they want to keep you as a customer rather than have you do a balance transfer and go to the next credit card issuer,” says Khalfani-Cox.

Asking costs nothing, but it can save you valuable money and help pay off your debt faster.

Choose a debt repayment plan

Financial experts often recommend paying off the debt with the highest interest rate first because it saves the most money long-term. While on paper that makes sense, Khalfani-Cox says it doesn’t always work.

“The reality is psychologically, a lot of us resist doing that strategy over the long term. So what I tell people to do is pick your pain point, work with the debt that is bothering you the most,” she says.

That might be a nearly maxed-out credit card, or maybe it’s the one with the highest interest rate. Either way, paying off the debt that causes the most stress will help build momentum and motivation.

The common debt payoff strategies are the “snowball” or “avalanche” methods, both of which focus on paying off one debt at a time.

• Snowball method: Pay off the smallest balance first to build momentum and motivation.
• Avalanche method: Pay off the debt with the highest interest rate first to save money over the long-term.

With either method, you make at least the minimum payments on all debts in order to avoid any late fees and to keep a good credit. Whichever debt you deemed most stressful you contribute a little extra to. Once that debt is paid off you apply the same process to the next debt on your “high stress” list. This continues until all debts are paid off.

Consider a balance transfer

If you are carrying high-interest debt, a balance transfer may help.

A balance transfer is when you move debt from one credit card or loan to another in order to take advantage of a lower interest rate. Some cards will offer a 0% introductory APR for a set period of time. This can help you save money on interest and pay down debt faster.

If you decide to explore this, there are a few things Khalfani-Cox advises to pay attention to:

• Transfer Fee:
  • Take a look at the fee that’s charged. The lower the fee, the better. Sometimes cards will have special offers where there’s no balance transfer fees, but most of the time, it will be anywhere from 2% to 3% and even as high as 5%.
• Introductory APR period:
  • Make sure you take a look at the low APR term length to determine if it fits your needs. Some balance transfers will last 12 months, and others may last 6 months or 15 months. When choosing a plan, you want to give yourself as much breathing room as possible to account for any bumps in the road. Khalfani-Cox recommends that even if you think you can knock the debt out in 12 months, if there’s an option for 18 months, do the 18 months.
• Read the fine print
  • Understand what happens if you don’t pay off the debt in full in your set amount of time. Does the interest that would have been accruing otherwise come into play once the 0% APR period ends? You want to make sure you fully understand all terms to make sure you are setting yourself and your finances up for success.

One word of caution: If having available credit might tempt you to spend more, a balance transfer may not be the right choice, Khalfani-Cox warns. But if your focus is paying down debt without added interest, it can be an effective tool — as long as it wont lead to new balances elsewhere.

Find a way to make some extra money

Paying extra bills will be a lot easier if you find a way to bring in a little extra cash.

An easy way to do this is by looking around your home and finding items to return, resell or repurpose.

Consider returning that extra sweater you bought for yourself while holiday shopping. If you don’t have anything to return, try selling some extra belongings like old technology, books, clothes, toys, jewelry or even furniture. We all have things lying around the house that we no longer need, and this is one of the easiest ways to make a few extra dollars.

Have a tag sale, use an online marketplace, or sell old jewelry to a local pawnshop.

“If the goal is to raise money to be able to pay off your debts, selling those items that you aren’t really using and don’t need is a quick and fast way to get that done,” says Khalfani-Cox.

Turning that extra clutter into cash is a great way to get started paying off that unwanted debt.

Cut back on discretionary spending

One of the biggest ways to avoid debt is knowing exactly how much you’re willing to spend before you start. That means before you click “buy” on that new gadget or sneakers, set up a meeting with your wallet.

How do you actually make a solid spending plan for next year?

First, review what money you have available. Take a look at your budget, see what you’ve spent so far, and where you want to spend more.

Holiday costs go beyond presents. Outfits for special events, dinners, drinks, extra childcare, travel and hosting expenses — they all add up. If you don’t account for all these categories, you’ll be overspending before you know it.

That being said, there are plenty of ways to cut back on spending in the future. Consider skipping out on pricey gift exchanges. Office gift swaps can be fun, but everyone often ends up with unused items. Suggesting a strict low-cost limit or homemade gifts only rule can be a fun way to switch things up, and also gives your wallet a break.

Big party coming up? Instead of buying a new outfit that you’re only going to wear once, try renting your festive attire on sites like Nuuly, Rent The Runway or Pickle.

If you have a big family or a lot of adult family members, instead of exchanging presents with everyone individually, suggest doing a White Elephant or a Secret Santa. This can help you save money by buying only one gift and can also be a fun way to spice up the family get-together.

Holiday debt isn’t from one big purchase — it’s the small, emotional buys throughout the season that add up before you know it. Shopping with a list and a plan is simple, but it’s an easy way to keep track of your finances all year long.

The going price for New York spot closed at a record $4,326 per troy ounce on Thursday. Futures also traded as high at more than $4,344 per troy ounce Thursday, before falling below the $4,300 mark Friday morning. Still, gold is up 6.7% over the last week, marking one of its best weeks to date.

Gold sales can rise sharply when anxious investors seek a “safe haven” for their money. For the U.S., the latest gains arrive amid the now weekslong government shutdown and ongoing trade wars abroad — with President Donald Trump most recently threatening to place much higher tariffs on China, before appearing to walk back those potential new levies as unsustainable. Still, his barrage of other import taxes has already strained economies worldwide. Meanwhile, the prospect of lower interest rates is also making gold a more attractive investment.

How much have gold prices climbed this year? What about silver?

Gold futures are up nearly 60% since the start of 2025 — trading at about $4,268 per troy ounce, the standard for measuring precious metals, as of around 11:45 a.m. Friday. That’s up from around $2,670 at the beginning of January.

Silver has seen an even bigger percentage jump year to date. Silver futures are up about 70%, trading at over $50 per troy ounce Friday morning.

Why are prices going up?

A lot of it boils down to uncertainty. Interest in buying metals like gold typically spikes when investors become anxious.

Much of this year’s economic turmoil has spanned from Trump’s trade wars. Since the start of 2025, steep new tariffs the president has imposed on goods coming into the U.S. from around the world have strained businesses and consumers alike — pushing costs higher and helping to weaken the job market. As a result, hiring has plunged while inflation has inched back up. And more and more consumers are expressing pessimism about the road ahead.

The U.S. government shutdown adds to those anxieties. Key economic data has been delayed — and scores of federal employees are already feeling the effects of furloughs and working without pay as long as the shutdown lasts, which has no immediate end in sight. The Trump administration also moved to use the shutdown to conduct mass firings, although a judge temporarily blocked such action.

Separately, analysts have pointed to continued weakness of the U.S. dollar and renewed rate cuts from the Federal Reserve. Last month, the Fed cut its key interest rate by a quarter-point — and projected it would do so twice more this year.

Investments in gold have also been driven by other factors over time. Over recent years, there’s been strong gold demand from central banks around the world — particularly amid heightened geopolitical tensions, such as the ongoing wars in Gaza and Ukraine.

And on Wall Street this week, several regional banks saw sharp losses amid scrunity over quality of loans, although recovery seemed to be steadying the market on Friday. Meanwhile, investors appeared to be distancing themselves from riskier assets like cryptocurrency — with bitcoin, for example, down 2.67%.

What about jewelry?

Many jewelry merchants and dealers have increasingly reported surges in customers looking to check the value of gold they own — sometimes opting to melt or sell family heirlooms to cash in on the precious metal’s rising price.

At the same time, those in the market for gold jewelry may be feeling “sticker shock” if they can’t afford certain products anymore — particularly if it’s something impacted by both rising material costs and tariffs.

Larger retailers like Pandora and Signet have acknowledged these headwinds in recent earnings calls.

Is gold worth the investment?

Advocates of investing in gold call it a safe haven — arguing that the commodity can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road as a hedge against rising inflation. Some also take comfort in buying something tangible that has the potential to increase in value over time.

Still, experts caution against putting all your eggs in one basket. And not everyone agrees gold is a good investment. Critics say gold isn’t always the inflation hedge many claim — and that there are more efficient ways to protect against potential loss of capital, such as derivative-based investments.

The Commodity Futures Trade Commission has also previously warned people to be wary of investing in gold. Precious metals can be highly volatile, and prices rise as demand goes up — meaning “when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers,” the commission noted.

Gold demand escalates mercury poisoning warnings

The frenzy for gold has also resulted in health and environmental consequences — with officials pointing to rising demand for mercury, a toxic metal that is key in illegal gold mining worldwide.

Mercury is widely used to separate gold during artisanal or small-scale mining. But it pollutes water, accumulates in fish, makes its way into food and builds up in people’s bodies, leading to neurological and developmental harm. Even small-scale exposure can carry serious risks — putting in danger workers who rely on the industry, as well as residents in affected areas more broadly.

The Associated Press has reported about the effects of mercury poisoning tied to gold mining in countries like Senegal, Mexico and Peru, among other parts of the world.

If so, that’s coming to end on Sept. 30.

Earlier this year, President Donald Trump signed an executive order mandating that all federal agencies switch to electronic payments. The Treasury Department announced last month that the federal government will stop issuing paper checks for most payments, including benefits and tax refunds, on Sept. 30, 2025.

“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” said Secretary of the Treasury Scott Bessent in a statement. “Thanks to President Trump, this will help reduce fraud and theft. It will also remove delays that prevent hardworking Americans from receiving their vital payments.”

The administration cited cost and security among the reasons for the change. According to the Treasury Department, issuing a check costs about 50 cents, whereas an Electronic Funds Transfer costs less than 15 cents. Paper checks are also more likely to be stolen or lost, increasing the risk of fraud.

While the vast majority of Americans already receive their federal benefits electronically, some 400,000 Social Security recipients and about 5 million taxpayers receive payments via paper checks.

Tax experts have expressed concerns about the change. Kathleen Bryant, a policy advisor at the Tax Law Center at NYU Law, a public interest tax law organization, said the administration’s rushed implementation of the executive order jeopardizes millions of taxpayers’ access to their refunds.

“Taxpayers without bank accounts and those who are elderly, disabled and living in rural areas with limited access to broadband may struggle to navigate electronic payment options,” Bryant said.

One in six households in the U.S. headed by someone over the age of 65 is considered “unbanked,” meaning they don’t have access to traditional bank accounts because they either don’t have enough money to maintain an account or cite concerns about fees and privacy, according the AARP.

After announcing it was phasing out all paper checks beginning in October, the Social Security Administration reversed course and said it could continue to do for recipients of retirement and disability benefits, who have no other means of getting payments. However, it was not clear if the IRS and Treasury Department would also provide exceptions to their “no paper checks” policy.

Here’s what to know about the changes and how to receive payments electronically:

Who does this affect?

The Treasury Department announced the following agencies paying out benefits would be impacted by the change:

• Social Security Administration
• Department of Labor’s Division of Coal Mine Workers’ Compensation
• Department of Veterans Affairs
• Railroad Retirement Board
• Defense Finance and Accounting Service
• Office of Personnel Management (Civil Service)

How to enroll in direct deposit

If you are still receiving a paper check for any of the above mentioned federal benefits, enroll in direct deposit using one of the following options:

• You can enroll in direct deposit with your bank or credit union at GoDirect.gov or call the Federal agency that pays your benefits and follow their instructions for enrolling in direct deposit. A list of the paying agencies’ contact information can be found here.
• If you don’t have a bank account, you can access resources to open an account at FDIC: GetBanked or MyCreditUnion.gov. 
• You can also receive benefit payments on a pre-paid debit Mastercard known as Direct Express. Individuals without a bank account can enroll by calling the Treasury’s Electronic Payment Solution Center at 800-967-6857, Monday – Friday 9 a.m. ET – 7 p.m. ET.

A bit more unexpected? Podcasters and social media influencers will also be excluded from forking over a portion of their tips, according to the list released Tuesday by the Treasury Department.

The provision in the law signed by President Donald Trump in July eliminates federal income taxes on tips for people working in jobs that have traditionally received them. It’s temporary and runs from 2025 until 2028. It applies to people who make less than $160,000 in 2025.

The Yale Budget Lab estimates that there were roughly 4 million workers in tipped occupations in 2023, which amounts to roughly 2.5% of all jobs.

The administration was required to publish a list of qualifying occupations within 90 days of the bill’s signing. The full list of occupations is located on the Treasury Department website.

They are broken down into eight categories, including beverage and food service; entertainment and events; hospitality and guest services; home services; personal services; personal appearance and wellness; recreation and instruction; and transportation and delivery.

Among other jobs exempted from tax on tips are sommeliers, cocktail waiters, pastry chefs, cake bakers, bingo workers, club dancers, DJs, clowns, streamers, online video creators, ushers, maids, gardeners, electricians, house cleaners, tow truck drivers, wedding planners, personal care aides, tutors, au pairs, massage therapists, yoga instructors, cobblers, skydiving pilots, ski instructors, parking garage attendants, delivery drivers and movers.

Scroll below to see the full list of occupations.

A report from the Budget Lab shows that the effects of the law would be small, given that tipped workers tend to be lower income. More than 37% of tipped workers, or over one third, earned income low enough that they faced no federal income tax in 2022.

“The larger and far more uncertain effect would stem from behavioral changes incentivized by the bill, such as substitution into tipped employment and tipped income, which would increase the bill’s overall cost,” states the report, which was written by Ernie Tedeschi, the director of economics at the Budget Lab.

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Congressional budget analysts project the “No Tax on Tips” provision would increase the deficit by $40 billion through 2028. The nonpartisan Joint Committee on Taxation estimated in June that the tips deduction will cost $32 billion over 10 years.

Only tips reported to the employer and noted on a worker’s W-2, their end-of-year tax summary, will qualify. Payroll taxes, which pay for Social Security and Medicare, would still be collected along with state and local taxes.

Polling shows Americans have panned the big bill. Half U.S. adults expect the new tax law will help the rich, according to the poll from The Associated Press-NORC Center for Public Affairs Research. Most — about 6 in 10 — think it will do more to hurt than help low-income people.

Here are the occupations on Treasury’s list:

Beverage & Food Service

• Bartender
• Wait staff
• Food servers (non-restaurant)
• Dining room and cafeteria attendants and bartender helpers
• Chefs and cooks
• Food preparation workers
• Fast food and counter workers
• Dishwashers
• Host staff, restaurant, lounge, and coffee shop
• Bakers

Entertainment & Events

• Gambling dealers
• Gambling change persons and booth cashiers
• Gambling cage workers
• Gambling and sports book writers and runners
• Dancers
• Musicians and singers
• Disc jockeys (except radio)
• Entertainers and performers
• Digital content creators
• Ushers, lobby attendants and ticket takers
• Locker Room, coatroom and dressing room attendants

Hospitality & Guest Services

• Baggage porters and bellhops
• Concierges
• Hotel, motel and resort desk clerks
• Maids and housekeeping cleaners

Home Services

• Home maintenance and repair workers
• Home landscaping and groundskeeping workers
• Home electricians
• Home plumbers
• Home heating and air conditioning mechanics and installers
• Home appliance installers and repairers
• Home cleaning service workers
• Locksmiths
• Roadside assistance workers

Personal Services

• Personal care and service workers
• Private event planners
• Private event and portrait photographers
• Private event videographers
• Event officiants
• Pet caretakers
• Tutors
• Nannies and babysitters

Personal Appearance & Wellness

• Skincare specialists
• Massage therapists
• Barbers, hairdressers, hairstylists and cosmetologists
• Shampooers
• Manicurists and pedicurists
• Eyebrow threading and waxing technicians
• Makeup artists
• Exercise trainers and group fitness instructors
• Tattoo artists and piercers
• Tailors
• Shoe and leather workers and repairers

Recreation & Instruction

• Golf caddies
• Self-enrichment teachers
• Recreational and tour pilots
• Tour guides and escorts
• Travel guides
• Sports and recreation instructors

Transportation & Delivery

• Parking and valet attendants
• Taxi and rideshare drivers and chauffeurs
• Shuttle drivers
• Goods delivery people
• Personal vehicle and equipment cleaners
• Private and charter bus drivers
• Water taxi operators and charter boat workers
• Rickshaw, pedicab and carriage drivers
• Home movers

“The short answer is don’t do it,” said Clint Henderson, a travel expert at The Points Guy. “All the airlines offer some form of ‘buy now, pay later’ now, so they’re all getting in on the act. You know, this is free money for them.”

These point-of-sale loans give consumers the ability to make installment payments over a fixed period of time. But as simple as it sounds, the drawbacks can be costly.

“Even though some of these buy now, pay later loans don’t have interest rates, or high interest rates, some of them do, and some of their fees can actually translate into roughly on par with the interest rates credit cards charge,” said John Kiernan, a managing editor at WalletHub. “You shouldn’t assume that there are going to be no repercussions for your credit score.”

As much as these loans feel like a way to spread out travel, “stacking” them can add up. And they don’t always come with the same consumer protections.

“It’s a slippery slope when you start doing buy now, pay later for food delivery orders, or even a vacation,” Kiernan said. “It makes it really hard to keep track of it all and figure out where your money’s going and how much you have left.”

Travel experts recommend saving money by setting up price alerts for flights and taking advantage of any summer offers.

“People are generally kind of stressed about their finances, but really in need of a vacation anyway,” said Kiernan.

“This is the first time in about five years that prices are actually down year over year for the peak summer travel season,” explained Henderson. “Usually, this is the time when I tell people, ‘you sort of missed the window for booking summer trips,’ but I’m seeing a lot of deals out there, and it is because of softening demand. The airlines have warned that they’re selling fewer seats, and so that means prices are lower for consumers.”

Instead of doing a buy now, pay later plan, both Henderson and Kiernan agree that using a travel credit card could unlock more value and benefits, when used responsibly.

“You’re much better off opening a credit card that’s going to give you a statement credit and a big signup bonus,” said Henderson.

“You can save, easily, $1,000 per year with those rewards,” explained Kiernan. “If you don’t need to borrow, go for credit card rewards. If you need just a little time to pay, buy now, pay later is great. And if you need longer [time], several months, go for a 0% credit card.”

That’s according to The Campbell’s Co., whose iconic cans are synonymous with it. The food maker said Monday that customers are increasingly snatching up its condensed soups and mac-and-cheese offerings while shying away from snacks, a spending shift that partly echoes the depths of the pandemic.

“Consumers are cooking at home at the highest levels since early 2020,” Campbell’s CEO Mick Beekhuizen said in a statement to NBC News.

The company — whose snack brands include Goldfish, Snyder’s of Hanover pretzels and Cape Cod chips — saw snack sales slip 5% in the last three months. Meanwhile, sales of its meals and beverages rose 6%, mainly driven by Rao’s pasta sauces and soup sales in the United States.

While consumers’ outlooks have improved somewhat in recent weeks, many remain deeply pessimistic about the direction of the economy under President Donald Trump’s ever-shifting trade war and are looking for bargains.

Households continue to “focus their spending on products that help them stretch their food budgets, and they’re increasingly intentional about their discretionary snack purchases,” Beekhuizen told Campbell’s investors on its earnings call.

“Snacks are losing ground as consumers, squeezed by inflation, shift spending toward essentials and more purposeful food choices,” analysts at the market research firm NIQ wrote in a recent note. “The era of indulgent, impulsive snacking is giving way to a demand for value, quality, and health.”

In a recent NIQ survey, 42% of consumers reported buying snacks less, and 37% said they’re searching harder for deals. Many indicated they’ve been thinking twice about pricier name-brand snacks, opting instead for more generic alternatives at convenience stores or those sold under supermarkets’ own private labels.

The tightening snack market has seen some friction, with Oreo maker Mondelēz recently suing Aldi, alleging the supermarket operator had “blatantly” mimicked some of its packaging designs for cheaper riffs on iconic snack brands.

While Mondelēz says snack demand remains sturdy, PepsiCo — which makes Lay’s and Doritos chips — has said it’s finding success catering to customers at lower price points. “Relative to where we were three months ago, we probably aren’t feeling as good about the consumer now as we were a few months ago,” PepsiCo CFO Jamie Caulfield said in April. The snack foods giant also lowered its financial forecast for the year.

Food shoppers’ hunt for value is also boosting Dollar General, which Tuesday increased its sales outlook for the year and said it picked up market share in food products. The dollar store operator notched those gains even as other retail giants, such as Target, that sell groceries have struggled to lure budget-conscious shoppers.

The growing focus on home cooking comes as costs of dining out are rising nearly twice as fast as grocery prices. Meals out were up 3.9% in April from a year earlier, federal data show, while at-home food prices rose just 2% over the same period, slower than inflation overall.

That divergence helps explain why many restaurant chains are seeing weaker sales. McDonald’s last month reported its biggest same-store sales decline since the pandemic, with that measure falling 3.6% during the first quarter. Darden Restaurants, which owns Olive Garden, also flagged weaker-than-expected sales around the start of the year, and Chipotle reported its same-store sales contracted for the first time since 2020.

McDonald’s CEO Chris Kempczinski said all but its most affluent diners are increasingly staying away from the burger chain, despite the past year’s efforts to counter its earlier menu price hikes with value meals. Traffic from low-income consumers was down “nearly double digits” compared to a year ago, with middle-income diners’ visits slowing “nearly as much,” he said.

Kempczinski said the split illustrated a “divided” economy in which moderately and less well-off consumers “are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook.”

In the meantime, restaurant operators are doing what they can to try to juice sales. Some are leaning into customers’ growing appetite for chicken, refreshing their locations with sleek new looks, or both.

These efforts could prove an uphill battle against the grocery aisle, where the costs of some key purchases, like eggs, are finally easing. But there are still signs of strain at supermarket checkouts as shoppers adjust to higher overall costs for many of the fridge and pantry basics they can’t easily do without. More shoppers are both financing their grocery purchases with installment loans and falling behind on those bills, a recent LendingTree survey found.

One such “buy now, pay later” service, Klarna, said recently that its borrowers are having a tougher time clearing their debts on the platform. Months earlier, the company became Walmart’s exclusive BNPL provider and teamed up with DoorDash to offer installment loans for takeout meals.

This story originally appeared on NBCNews.com. Read more from NBC News:

• McDonald’s Snack Wrap is officially returning. Here’s when.
• Some restaurant chains are leaning into ’90s nostalgia to appeal to a new generation
• Tomato recall affecting 3 states elevated to risk of death by FDA

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A growing number of Americans are using buy now, pay later loans to buy groceries, and more people are paying those bills late, according to new Lending Tree data released Friday. 

The figures are the latest indicator that some consumers are cracking under the pressure of an uncertain economy and are having trouble affording essentials such as groceries as they contend with persistent inflation, high interest rates and concerns around tariffs. 

In a survey conducted April 2-3 of 2,000 U.S. consumers ages 18 to 79, around half reported having used buy now, pay later services. Of those consumers, 25% of respondents said they were using BNPL loans to buy groceries, up from 14% in 2024 and 21% in 2023, the firm said.

Meanwhile, 41% of respondents said they made a late payment on a BNPL loan in the past year, up from 34% in the year prior, the survey found.

Lending Tree’s chief consumer finance analyst, Matt Schulz, said that of those respondents who said they paid a BNPL bill late, most said it was by no more than a week or so.

“A lot of people are struggling and looking for ways to extend their budget,” Schulz said. “Inflation is still a problem. Interest rates are still really high. There’s a lot of uncertainty around tariffs and other economic issues, and it’s all going to add up to a lot of people looking for ways to extend their budget however they can.”

“For an awful lot of people, that’s going to mean leaning on buy now, pay later loans, for better or for worse,” he said. 

He stopped short of calling the results a recession indicator but said conditions are expected to decline further before they get better.  

“I do think it’s going to get worse, at least in the short term,” said Schulz. “I don’t know that there’s a whole lot of reason to expect these numbers to get better in the near term.”

The loans, which allow consumers to split up purchases into several smaller payments, are a popular alternative to credit cards because they often don’t charge interest. But consumers can see high fees if they pay late, and they can run into problems if they stack up multiple loans. In Lending Tree’s survey, 60% of BNPL users said they’ve had multiple loans at once, with nearly a fourth saying they have held three or more at once. 

“It’s just really important for people to be cautious when they use these things, because even though they can be a really good interest-free tool to help you kind of make it from one paycheck to the next, there’s also a lot of risk in mismanaging it,” said Schulz. “So people should tread lightly.” 

Lending Tree’s findings come after Billboard revealed that about 60% of general admission Coachella attendees funded their concert tickets with buy now, pay later loans, sparking a debate on the state of the economy and how consumers are using debt to keep up their lifestyles. A recent announcement from DoorDash that it would begin accepting BNPL financing from Klarna for food deliveries led to widespread mockery and jokes that Americans were struggling so much that they were now being forced to finance cheeseburgers and burritos.

Over the last few years, consumers have held up relatively well, even in the face of persistent inflation and high interest rates, because the job market was strong and wage growth had kept up with inflation — at least for some workers. 

Earlier this year, however, large companies including Walmart and Delta Airlines began warning that the dynamic had begun to shift and they were seeing cracks in demand, which was leading to worse-than-expected sales forecasts. 

Capital One Financial‘s application to acquire Discover Financial Services in a $35.3 billion all-stock deal has officially been approved by the Federal Reserve and the Office of the Comptroller of the Currency, the regulators announced on Friday.

“The Board evaluated the application under the statutory factors it is required to consider, including the financial and managerial resources of the companies, the convenience and needs of the communities to be served by the combined organization, and the competitive and financial stability impacts of the proposal,” the Fed said in a release.

Capital One first announced it had entered into a definitive agreement to acquire Discover in February 2024. It will also indirectly acquire Discover Bank through the transaction, which was approved by the Office of the Comptroller of the Currency on Friday.

Under the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share or about a 26% premium from Discover’s closing price of $110.49 at the time, Capital One said in a release.

Capital One and Discover are among the largest credit card issuers in the U.S., and the merger will expand Capital One’s deposit base and its credit card offerings. 

As a condition of the merger, Capital One said it will comply with the Fed’s action against Discover, according to the release. The Fed fined Discover $100 million for overcharging certain interchange fees from 2007 through 2023, and the company is repaying those fees to affected customers.

The OCC said it approved Capital One’s application on the condition that it would take “corrective actions” to remediate harm and address the “root causes” of outstanding enforcement actions against Discover.

After the deal closes, Capital One shareholders will hold 60% of the combined company, while Discover shareholders own 40%, according to the February 2024 release.

In a joint statement, Capital One and Discover said they expect to close the deal on May 18.

WATCH: Jamie Dimon on Capital One’s $35.3 billion Discover acquisition: ‘Let them compete’

The Trump administration’s plan to slap steep tariffs on goods from dozens of countries is expected to spike prices for consumers. Some items, like leather goods, will see a bigger jump than others.

The overall impact on households will vary based on their purchasing habits. But most families — especially lower earners — are likely to feel the pain to some degree, economists said.

According to an analysis by the Budget Lab at Yale University, the average household will lose $3,800 of purchasing power per year as a result of all President Donald Trump’s tariff policies — and retaliatory trade actions by other nations — announced as of Wednesday.

That’s a “meaningful amount,” said Ernie Tedeschi, the lab’s director of economics and former chief economist at the White House Council of Economic Advisers during the Biden administration.

The analysis doesn’t include the 34% retaliatory tariff China announced Friday on all U.S. exports, set to take effect April 10. The U.S. exported nearly $144 billion worth of goods to China in 2024, the third-largest market for U.S. goods behind Canada and Mexico, according to the Census Bureau.

Clothing prices poised to spike

The garment industry is among the most susceptible to tariff-related price shocks.

Prices for clothing and shoes, gloves and handbags, and wool and silk products will all increase by between 10% and 20% due to the tariffs Trump has so far imposed, according to the Yale Budget Lab analysis. Tedeschi noted that some of these price increases could take 5 years or more to unfold.

The bulk of apparel and shoes sold in the U.S. is manufactured in China, Vietnam, Sri Lanka and Bangladesh, said Denise Green, an associate professor at Cornell University and director of the Cornell Fashion + Textile Collection.

Under the “reciprocal tariffs” Trump announced Wednesday, Chinese imports will face a 34% duty. Goods from Vietnam, Sri Lanka and Bangladesh face tariffs of 46%, 44% and 37%, respectively.

Taking into account the pre-existing tariffs on China totaling 20%, Beijing now faces an effective tariff rate of at least 54%.

“The tariffs are disastrous for the apparel industry worldwide, but especially for smaller countries with highly specialized garment manufacturing,” Green said.

A lot of clothing production has moved overseas over the last 50 years, Tedeschi said, but it’s “very unlikely” clothing and textile manufacturing will return to the U.S. from Asia in the wake of the new tariffs.

“People will still import clothing to a large extent, and they’ll have to eat the price increase,” he said.

Car prices are another pain point

The duties announced Wednesday are on top of other tariffs Trump has imposed since his second inauguration, including duties on automobiles and car parts; copper, steel and aluminum; and certain imports from Canada and Mexico.

The cost of motor vehicles and car parts could swell by over 8% according to the Yale Budget Lab analysis.

Bank of America estimated that new vehicle prices could increase as much as $10,000 if automakers pass the full impact of tariffs on to consumers.

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“Rising car prices are already a major pain point for the vast majority of Americans who live in an area where they need a car to get to work, school, their kids’ activities, and medical appointments,” said Erin Witte, director of consumer protection for the Consumer Federation of America.

“These tariffs will make it much worse, and will significantly reduce Americans’ choices about what car they want to buy,” she said.

Tariffs on specific commodities like aluminum and steel affect consumers indirectly, since the materials are used to manufacture a swath of consumer goods.

White House spokesman Kush Desai pushed back on analyses that prices will spike because of Trump’s tariff policy.

“Chicken Little ‘expert’ predictions didn’t quite pan out during President Trump’s first term, and they’re not going to pan out during his second term when President Trump again restores American Greatness from Main Street to Wall Street,” Desai said in an e-mailed statement.

Trump’s second-term tariffs are orders of magnitude larger than his first term, however.

The first Trump administration put tariffs on about $380 billion worth of goods in 2018 and 2019, according to the Tax Foundation. The tariffs so far imposed in Trump’s second term affect more than $2.5 trillion of U.S. imports, it said.

There’s also evidence that the first-term tariffs raised prices for some consumers.

Retail prices for the typical washing machine and clothing dryer rose by about 12% each — about $86 and $92 per unit, respectively — due to 2018 tariffs on imports of washing machines, according to a study by economists at the Federal Reserve Board and University of Chicago. The increased cost to consumers totaled $1.5 billion a year, the study found.

Tariffs are expected to raise the U.S. inflation rate

Economists also expect the overall U.S. inflation rate to jump due to tariffs.

American businesses that import goods from abroad will be the ones on the hook for paying the cost of tariffs, and economists anticipate that companies will pass at least some of those costs on to consumers.

An environment of rising prices for foreign goods may give U.S. businesses cover to somewhat raise their prices, too.

As a result, the consumer price index could jump to 4.5% later in 2025, Capital Economics estimated Thursday. That’s up from 2.8% in February, and roughly double the Federal Reserve’s long-term inflation target.

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Shoppers will likely pay more for coffee, bananas, vanilla and toilet paper over the coming weeks as the Trump administration’s new tariffs go into effect.

The U.S. plans to hike tariff rates on goods imported from more than 180 countries and territories in the hopes of bringing jobs back stateside. However, some “critical” ingredients and materials found in food, drinks and goods used daily by U.S. consumers are not available domestically, according to the Consumer Brands Association, an industry trade group that represents Coca-Cola, Procter & Gamble, Target and other consumer giants.

“However well intended, the success of the President’s America First Trade Policy, must recognize the U.S. companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically,” Tom Madrecki, vice president of supply chain resiliency for the CBA, said in a statement. “Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers.”

On CNBC’s “Squawk Box” on Thursday morning, Commerce Secretary Howard Lutnick brushed off the idea that countries could win exemptions for specific goods. But the CBA is seeking exemptions for key ingredients and materials slapped with tariffs to keep prices down for its members and their customers.

For one, the U.S. climate limits the production of some staples of the U.S. diet, such as coffee, cocoa and tropical fruits, according to the CBA. The U.S. was the top global importer of bananas in 2023, based on Observatory of Economic Complexity data. Nearly 40% of those bananas came from Guatemala, which will face a 10% tariff on goods exported to the U.S.

Spices will also become pricier for home cooks and bakers because of climate limitations, the CBA said. For example, Madagascar accounts for more than three-quarters of U.S. imports of vanilla, which is already the second-most expensive spice in the world. Exports from Madagascar will be subject to tariffs of 47%.

Shares of spice purveyor McCormick were down less than 1% in afternoon trading on Thursday. The company plans to offset tariffs through “some very targeted price adjustments” and a broader cost-savings program, McCormick executives said in late March.

In other cases, decadeslong shifts in the U.S. agricultural system mean domestic supply will not be able to meet demand easily.

For example, more than 90% of oats milled for food in the U.S. come from Canada to be turned into cereal, the CBA said. But U.S. oat acreage peaked more than a century ago and has been declining in the decades since then, according to the U.S. Department of Agriculture. The domestic food system can no longer grow, store or transport U.S. oats at the scale necessary to meet demand, the CBA said.

Shoppers will likely also find themselves paying more for inedible household staples. Toilet paper, diapers, lotions and shampoo could become more expensive as manufacturers pass on the increased costs for wood pulp, bamboo fibers, shea butter and palm oil, according to the CBA. For example, the U.S. imports most of its palm oil supply from Indonesia, which now faces a 32% duty.

Markets plunged on Thursday in response to the tariff announcement. However, stocks in the consumer staples sector, which includes many of the CBA’s members, rose in afternoon trading as investors ditched riskier bets for the relative safety of household necessities.

Shares of Procter & Gamble climbed more than 1%, while Coke’s stock was up 2%. General Mills’ shares ticked up 3%.

Fintech lender Affirm said Tuesday that it’s reached an agreement with JPMorgan Chase to offer its buy now, pay later loan services to merchants on the bank’s payments network.

U.S. merchants who use JPMorgan to handle payments can now add Affirm to their checkout pages, according to a release. Consumers will have access to loans ranging from 30 days to 60 months, according to Affirm.

The deal follows a similar announcement from rival Klarna last month, in which the Swedish fintech said it would be available to JPMorgan’s merchants. Affirm and Klarna are increasingly going head to head as the buy now, pay later field matures in the U.S.; Affirm is publicly traded and seeking to reliably grow profits, while Klarna recently filed for a U.S. IPO.

“The demand for diverse payment options, flexibility, and seamless transactions from both merchants and their customers is at an all-time high,” Michael Lozanoff, global head of merchant services at J.P. Morgan Payments, said in the release.

“By incorporating Affirm as a payment method into our Commerce Platform, we are empowering businesses to deliver the services they need and the experiences that customers increasingly expect as part of their retail journey,” he said.

Affirm said the deal was an expansion of existing banking and processing relationships with JPMorgan, the largest U.S. bank by assets.

The upper bound of what’s considered middle class for households exceeds $100,000 in every U.S. state, according to a SmartAsset analysis of 2023 income data, the most recent available from the U.S. Census Bureau.

The report, which crunched the numbers for all 50 states, is based on Pew Research’s definition of middle class: two-thirds to double the median household income.

On that measure, Massachusetts has the highest threshold for middle-class salaries, overtaking New Jersey from last year’s rankings. A household there needs between $66,565 and $199,716 to be considered middle class, with the upper boundary increasing by nearly $11,000 from the previous report.

A six-figure income doesn’t go as far as it used to

Even as more households earn six-figure salaries, many middle-class earners are feeling the squeeze. While inflation-adjusted wages have risen since 2022, those gains have been largely offset by increasing costs since the start of the Covid-19 pandemic in 2020.

Housing and food, in particular, have become more expensive. From January 2020 to December 2024, home prices climbed 52%, according to the Case-Shiller U.S. National Home Price Index, while food prices rose 30%, based on Consumer Price Index data. Over the same period, overall inflation grew 25%.

Rising costs help explain why two-thirds of middle-class Americans said they were struggling financially and didn’t expect their situation to improve in a 2024 survey from the National True Cost of Living Coalition.

Since then, year-over-year inflation has hovered around 3%, still above the Federal Reserve’s 2% target but far below its June 2022 peak of 9.1%. But although price increases have slowed, the cumulative effect of the past few years has eroded many Americans’ spending power. As a result, a six-figure income may not stretch as far as it once did.

Below, see what’s considered middle class in your state.

Alabama

• Low end of middle class: $41,471 
• High end of middle class: $124,424 
• Median household income: $62,212 

Alaska

• Low end of middle class: $57,748 
• High end of middle class: $173,262 
• Median household income: $86,631 

Arizona

• Low end of middle class: $51,538 
• High end of middle class: $154,630 
• Median household income: $77,315 

Arkansas

• Low end of middle class: $39,129 
• High end of middle class: $117,400 
• Median household income: $58,700 

California

• Low end of middle class: $63,674 
• High end of middle class: $191,042 
• Median household income: $95,521 

Colorado

• Low end of middle class: $61,934 
• High end of middle class: $185,822 
• Median household income: $92,911 

Connecticut

• Low end of middle class: $61,104
• High end of middle class: $183,330 
• Median household income: $91,665 

Delaware

• Low end of middle class: $54,235 
• High end of middle class: $162,722 
• Median household income: $81,361 

Florida

• Low end of middle class: $48,869 
• High end of middle class: $146,622 
• Median household income: $73,311 

Georgia

• Low end of middle class: $49,750 
• High end of middle class: $149,264 
• Median household income: $74,632 

Hawaii

• Low end of middle class: $63,542 
• High end of middle class: $190,644 
• Median household income: $95,322 

Idaho

• Low end of middle class: $49,956 
• High end of middle class: $149,884 
• Median household income: $74,942 

Illinois

• Low end of middle class: $53,532 
• High end of middle class: $160,612 
• Median household income: $80,306 

Indiana

• Low end of middle class: $46,313 
• High end of middle class: $138,954 
• Median household income: $69,477 

Iowa

• Low end of middle class: $47,617 
• High end of middle class: $142,866 
• Median household income: $71,433 

Kansas

• Low end of middle class: $46,884
• High end of middle class: $140,666
• Median household income: $70,333

Kentucky

• Low end of middle class: $40,741
• High end of middle class: $122,236
• Median household income: $61,118 

Louisiana

• Low end of middle class: $38,815
• High end of middle class: $116,458
• Median household income: $58,229 

Maine

• Low end of middle class: $49,150
• High end of middle class: $147,466
• Median household income: $73,733

Maryland

• Low end of middle class: $65,779
• High end of middle class: $197,356
• Median household income: $98,678 

Massachusetts

• Low end of middle class: $66,565
• High end of middle class: $199,716 
• Median household income: $99,858 

Michigan

• Low end of middle class: $46,117
• High end of middle class: $138,366
• Median household income: $69,183 

Minnesota

• Low end of middle class: $56,718
• High end of middle class: $170,172
• Median household income: $85,086 

Mississippi

• Low end of middle class: $36,132
• High end of middle class: $108,406
• Median household income: $54,203 

Missouri

• Low end of middle class: $45,692
• High end of middle class: $137,090
• Median household income: $68,545 

Montana

• Low end of middle class: $47,198
• High end of middle class: $141,608
• Median household income: $70,804

Nebraska

• Low end of middle class: $49,722
• High end of middle class: $149,180 
• Median household income: $74,590 

Nevada

• Low end of middle class: $50,904
• High end of middle class: $152,728 
• Median household income: $76,364 

New Hampshire

• Low end of middle class: $64,552
• High end of middle class: $193,676 
• Median household income: $96,838 

New Jersey

• Low end of middle class: $66,514
• High end of middle class: $199,562
• Median household income: $99,781 

New Mexico

• Low end of middle class: $41,508
• High end of middle class: $124,536
• Median household income: $62,268 

New York

• Low end of middle class: $54,725
• High end of middle class: $164,190 
• Median household income: $82,095 

North Carolina

• Low end of middle class: $47,198
• High end of middle class: $141,608
• Median household income: $70,804

North Dakota

• Low end of middle class: $51,012
• High end of middle class: $153,050 
• Median household income: $76,525 

Ohio

• Low end of middle class: $45,175
• High end of middle class: $135,538
• Median household income: $67,769

Oklahoma

• Low end of middle class: $41,421
• High end of middle class: $124,276
• Median household income: $62,138

Oregon

• Low end of middle class: $53,435
• High end of middle class: $160,320
• Median household income: $80,160

Pennsylvania

• Low end of middle class: $49,211
• High end of middle class: $147,648
• Median household income: $73,824

Rhode Island

• Low end of middle class: $56,642
• High end of middle class: $169,944
• Median household income: $84,972

South Carolina

• Low end of middle class: $45,198
• High end of middle class: $135,608
• Median household income: $67,804

South Dakota

• Low end of middle class: $47,869
• High end of middle class: $143,620
• Median household income: $71,810

Tennessee

• Low end of middle class: $45,083
• High end of middle class: $135,262
• Median household income: $67,631

Texas

• Low end of middle class: $50,515
• High end of middle class: $151,560
• Median household income: $75,780

Utah

• Low end of middle class: $62,274
• High end of middle class: $186,842
• Median household income: $93,421

Vermont

• Low end of middle class: $54,135
• High end of middle class: $162,422
• Median household income: $81,211

Virginia

• Low end of middle class: $59,948
• High end of middle class: $179,862
• Median household income: $89,931

Washington

• Low end of middle class: $63,064
• High end of middle class: $189,210
• Median household income: $94,605

West Virginia

• Low end of middle class: $37,295
• High end of middle class: $111,896
• Median household income: $55,948

Wisconsin

• Low end of middle class: $49,749
• High end of middle class: $149,262
• Median household income: $74,631

Wyoming

• Low end of middle class: $48,272
• High end of middle class: $144,830
• Median household income: $72,415

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As part of the ‘great wealth transfer,’ more than $100 trillion is projected to change hands in the coming decades.

A recent report from Cerulli Associates puts the total tally being passed to family members by 2048 at an estimated $124 trillion.

Whether husbands are leaving money to their wives, or couples are passing a nest egg down to their children, “women will receive most of it,” said Kay Hope, research analyst at Bank of America Global Research. 

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Roughly $54 trillion will go to surviving spouses — a shift also referred to as the “horizontal wealth transfer.” Among this group, 95% are women, according to Bank of America Institute’s recent women and wealth report.

Another $47 trillion is expected to be passed down to women in younger generations as inherited wealth. 

“The result: women will soon control more money than ever before,” the report said.

Women’s prosperity is on the rise

Women have historically lagged in financial resources and opportunity, largely due to a persistent gender wage gap. Women today still earn only 80% of what their male counterparts do. 

However, women are achieving increasing levels of education and working as much, if not more, than their male counterparts, which has resulted in rising wages and greater representation in senior leadership positions.

“Increased wage gains, coupled with the ‘great wealth transfer,’ position women to be key drivers of economic growth,” Bank of America Institute’s report said. And, “as wealth increases, women’s prosperity will help to ‘grow the pie’ of total affluence.”

By 2030, roughly two-thirds of the private wealth in the U.S. will be held by women — which will be the largest wealth transfer by gender in history, according to a separate research report by McKinsey.  

For that reason, the money that is being passed down can create a safety net that didn’t previously exist for women, according to Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida.

“You can’t bank on it 100%, but that can ease the pressure,” said McClanahan, who also is a member of CNBC’s Advisor Council.

How to navigate the wealth transfer

There are a few key considerations to help women better prepare for the greatest generational wealth transfer in history, according to Christa O’Brien, a financial advisor at Northwestern Mutual.

Have the conversation: “Many often forget to consider the downsides that are associated with wealth transfers if they don’t have a plan in place,” O’Brien said. For example, if the individual who passed did not have life insurance, long-term care or supplemental disability insurance, there may also be debts left behind that can erode the inheritance.

“That’s why it’s important to plan early and make sure all beneficiaries are part of financial planning conversations with trusted advisors,” she said.

Where you live matters: “Whether it’s an inherited 401(k), a life insurance payout or liquid assets transferring to your name, there are implications on how much you should take out, and when,” O’Brien said. Everyone’s situation and the way they plan is different, she said, but the common goal is to lessen the future tax liability and spare your own heirs much larger bills. 

Plan for longevity: Women live almost six years longer than men, on average, and given longer life expectancies, women should consider strategies that ensure their savings last longer, such as delaying Social Security benefits to increase monthly payouts. 

That makes it even more important to start working with a financial advisor on a long-term investment strategy as well as buying long-term care insurance for yourself, O’Brien said. By doing so, “when the next wealth transfer takes place, you’re setting that beneficiary up for greater financial success,” she said.

Build financial security: Not only do women have smaller nest eggs than men, but they also tend to invest more conservatively. Think about ways you may be able to grow cash or assets through options like a high-yield savings account, Roth individual retirement account or money market account, O’Brien said, depending on your time frame.

“As important as it is to invest to grow your money, consider being a little more aggressive with money you don’t need right now and less aggressive with money you might need,” O’Brien said. 

Be aware of financial scams: Financial scams are a grave and growing threat to consumers’ financial security, and more often older adults and women are targeted. For them, the financial blow can be especially devastating.

“To protect yourself from fraud, be cautious when sharing information with unknown sources and verify credibility before making financial decisions,” O’Brien said. 

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More couples are saying “yes” to lab-grown diamonds.

In 2024, 52% of couples surveyed said their engagement ring featured a lab-grown diamond, according to the 2025 Real Weddings Study by The Knot. The popularity of lab-grown diamonds increased by 6% from last year and by 40% since 2019, the bridal site found.

In addition to data from prior reports, the Knot 2025 Real Weddings Study includes insights from nearly 17,000 couples in the U.S. who got married in 2024 and data from couples getting married in 2025.

Many couples end up buying a lab-grown diamond ring because of the lower price tag, according to experts. On average, a proposer looking to buy a lab-grown engagement ring could expect to spend about $4,900 compared with $7,600 for a mined diamond ring, the Knot found.

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In general, lab-grown diamonds can sell for around one-tenth the price of a comparable natural diamond, according to Paul Zimnisky, a global diamond industry analyst and founder of Paul Zimnisky Diamond Analytics.

In the first quarter of 2025, an unbranded, round, 1-carat lab-grown diamond costs about $845, according to Zimnisky’s proprietary data and analysis. A similar natural diamond would cost about $3,895.

Lab-grown diamonds possess the same chemical properties and hardness as naturally mined diamonds, and thus are subject to the same “four C’s” — cut, color, clarity and carat — grading system as natural gems.

The big question — can you tell if a diamond was human-made or mined?

Both stones are optically the same, meaning they will look the same to the naked eye, experts say. However, under the proper testing conditions, scientists and jewelers with the expertise can tell them apart, according to Ulrika F.S. D’Haenens-Johansson, a research scientist and senior manager of diamond research at the Gemological Institute of America.

If you’re in the market for an engagement ring this year, here are some key factors you should consider about lab-grown diamonds versus a natural diamond, according to experts.

Pros and cons to a lab-grown diamond

A major advantage to lab-grown diamonds over natural diamonds is the lower cost. Prices for lab-grown diamonds have been dropping as manufacturers increase the supply.

“The price has become enticing for a lot of people,” said Amanda Gizzi, director of public relations and events at the Jewelers of America, a trade organization.

However, there are other factors to consider when it comes to lab-grown diamonds:

• Ethics: For some shoppers, lab-grown stones helped provide an option for those concerned about “blood diamonds,” or diamonds mined in war zones and used to fund conflict and human rights abuses. However, experts noted that the diamond industry has come a long way from how diamonds are sourced. The Kimberley Process is an international trade regime created in 2003 to add oversight to the diamond supply chain and eliminate the trade of diamonds sold by rebel groups or their allies.

• Environmental impact: While lab-grown diamonds have gained a reputation for being a “greener” way to purchase diamonds, it’s uncertain how truly sustainable they are. “Lab-grown [diamonds] require higher energy consumption because they’re growing in a laboratory that [is] powered by fossil fuels,” Gizzi said. If sustainability is important, Zimnisky said, consider a second-hand or repurposed diamond for “the lowest environmental impact.”

• Value over time: Engagement rings are typically purchased for sentimental reasons and are not considered investments. But it’s worth noting that lab-grown diamonds do not hold their value and will likely sell for less than what you initially paid for, Gizzi said. A high-quality natural diamond or gemstone may hold its value, or even appreciate.

What to consider when ring shopping

The first thing you should do is set a realistic budget, said Lauren Kay, executive editor at The Knot.

“You should determine what price you’re comfortable with,” she said.

The rule of thumb about spending “three months’ salary” on a diamond ring is an outdated myth, she said.

Gizzi agreed: “I haven’t used that in a decade.” 

Whether you pick a lab-grown diamond or a natural one, “buy the best diamond that your budget can afford,” as the ring is a piece of jewelry your significant other will appreciate for a long time, Gizzi said.

“It’s not something that you’re going to upgrade a year later,” Gizzi said.

If you’re in the process of buying a ring, here are two more things to consider when shopping for engagement rings:

1. The four C’s

The four C’s, the color, carat, clarity and cut, can influence the overall cost of the diamond. Knowing which of the qualities matters most to you and your significant other can help you bring down the overall cost, The Knot’s Kay said.

2. The metal

The metal of the ring you choose can also influence the price, Kay said. For example, while platinum and white gold look similar, platinum is “rarer and stronger” and can cost more, she said.

But you also want to consider the longevity of the jewelry piece, she said. Even though white gold can be a cheaper metal and can lower upfront costs, you may want to consider long-term maintenance into the price, she said.

For instance, a durable metal like platinum is unlikely to change color over time, Gizzi said. White gold, on the other hand, will require you to periodically re-plate the ring to restore the original finish.

USAA, an American financial services company that provides insurance and banking products to members of the military, veterans and their families, agreed to a nationwide class action lawsuit settlement following claims that the company failed to prevent a May 2021 data breach that compromised personal information.

Who is eligible to file a claim?

Those whose personal information was accessed, stolen or compromised as a result of the breach should have been notified after the settlement was reached in December 2024.

If a person impacted by the breach does not file a claim, they may not receive a payment from the settlement. Anyone impacted is advised to file the settlement payment election to ensure payment.

When is the deadline to file a claim?

Individuals who do not exclude themselves from the lawsuit must file a settlement payment election by April 7.

The deadline to be excluded from or object to the settlement is also April 7.

How much money will I receive from the USAA data breach settlement?

Class members would receive an equal share of the net settlement fund, which is $3.25 million. Exact payments would depend on how many people participate in the lawsuit, as well as deductions from the fund for various fees.

USAA, which serves military members and their families, has not admitted to any wrongdoing. The over $3 million settlement, however, is an agreement to resolve security breach allegations.

When can I expect payment from the USAA data breach settlement?

It is unclear when payments will be issued in the USAA data breach settlement. The final approval hearing for the settlement is set for May 21, 2025.

For more information on the settlement and how to file your claim before deadline, click here. 

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