The Daily Money: Why is tipping so controversial?
Good morning and happy Friday! This is Betty Lin-Fisher with Friday's consumer-focused edition of The Daily Money.
Admit it: When you're checking out at a coffee shop or picking up some food and the cashier flips the display around to include the tip screen, do you grumble a bit inside?
Nearly 2 out of 3 people asked in a recent Bankrate survey said they have negative feelings about tipping. Another study by LendingTree examined government data to identify which states had the highest and lowest tipping rates.
How much are people tipping, and what state residents are the most generous?
Shopping habits are changing
Have you heard of valuespending? It's a term that Lightspeed Commerce, a point-of-sale commerce platform that serves a variety of retail and hospitality clients, came up with to describe shoppers who are choosing to shop brands and retailers that align with their values.
According to a survey of 2,000 shoppers aged 18 and older by Lightspeed, 92% of respondents said they are somewhat intentional in their shopping habits these days. And Gen Z shoppers are leading the charge.
Say no to an inheritance?
The so-called great wealth transfer has begun, reports my colleague Medora Lee. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates.
However, if you have a big inheritance coming, you may want to consider refusing it. Here's why.
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Los Angeles Times
an hour ago
- Los Angeles Times
As Gen Z and millennial women look to get money-smart, Dow Janes is trending upward
After Britt Baker graduated from Harvard Business School in 2016, her friends back in California begged for a souvenir: the best investment advice she'd learned. Baker, 37, indulged them, starting out of her Fairfax, Calif., living room a finance club that eventually became her present-day financial education startup, Dow Janes — which boasts an Instagram following of nearly half a million. But the wisdom she doled out at those early club meetings didn't actually come from business school, she said. It came from her parents and grandparents, who instilled in her from childhood the importance and mechanics of managing money wisely. Not all of Baker's peers were so fortunate, she said. Indeed, research has shown that many parents in the U.S. are unlikely to teach their children, particularly their daughters, about managing money beyond packing a piggy bank. More than half of Americans said their parents never discussed money with them in a 2024 Fidelity survey. Additionally, a 2021 survey revealed a significant gender gap when it came to early financial education, with 22% of female respondents never having received such education from their parents compared with 15% of male respondents. A 2024 PNC Investments survey similarly found that at a young age, female respondents received less instruction about wealth-building strategies than their male counterparts. These education gaps have led to low financial literacy rates among women in the U.S., especially those belonging to Gen Z. But social media-savvy money experts like Baker in recent years have aimed to change that with accessible financial education content. Their engagement has surged as a volatile stock market and global turmoil surrounding Trump's tariffs have left American consumers, especially those new to managing their money, desperate for guidance. On Instagram, finance education accounts like Dow Janes use anything from infographics to trending meme formats to repackage complex economics concepts for public consumption. In recent months, special interest topics like Trump's tariffs and recession threat have gotten more attention. The goal, Baker said, is to get more finance-related content in front of more eyes. 'The more people are talking about money, the better, because it gets less serious,' Baker said. 'It's like, 'Oh, I've heard about a high-yield savings account because of some influencer, so now I'm going to look it up.' 'It's less scary because [they've] heard it mentioned so many times,' she said. Dow Janes' YouTube and social media posts consist mainly of what Baker called 'building block content,' covering finance essentials from creating a budget to improving a credit score. Anyone can access those materials for free. But for those looking for more personalized coaching and guided learning, the startup offers a 12-month financial literacy course, Million Dollar Year. Priced at $4,000 — discounted 50% for those who opt to join after attending a Dow Janes webinar — the program is a self-study video curriculum, Baker said, with corresponding fill-in-the-blank workbooks covering financial concepts 'broken down into bite-sized pieces.' Million Dollar Year is Dow Janes' primary revenue stream, supplemented by occasional live events and Zoom retreats throughout the year. Baker declined to disclose financial details about the company, but she said Dow Janes is a full-time gig for both herself and co-founder Laurie-Anne King. 'We really hold your hand through the whole process,' Baker said. On top of completing their solo homework, participants attend weekly office hours and coaching calls as well as a monthly 'mindset call,' wherein participants practice positive thinking and self-compassion when they've failed to meet certain financial goals. 'It's not just, 'How to save an emergency fund and where to save it,'' Baker said. Instead, Dow Janes encourages its members to shift their long-term habits by healing their relationship with money. For program participant Meg Collins, 72, that psychologically informed approach was the thing she felt was missing from the series of financial courses she completed before finding Dow Janes. Collins is no longer just tracking her spending, she said, 'but I'm understanding why I'm purchasing things, what the triggers are for me.' During a program exercise wherein Collins wrote a letter to 'Mr. Money,' she discovered she blamed her father for not teaching her everything he knew about saving and investing, which was a lot. Then, she blamed the education system for failing to catch her up. 'Somehow or other, the guys will get together and talk about investments,' Collins said, but young women are rarely included in those conversations, and they fall behind. This pattern of women not having agency over their finances is rooted in history, said financial educator Berna Anat. A self-professed 'financial hype woman' and the author of 'Money Out Loud: All the Financial Stuff No One Taught Us,' Anat, 35, said she aims with her beginner-friendly financial content to empower people, especially first-generation women, to build sustainable wealth. Anat makes anywhere from $65,000 to $125,000 per year as a 'finfluencer,' or finance influencer, primarily through speaking engagements and brand partnerships. The Bay Area-based creator doesn't have any finance certifications or a business degree, a fact she's transparent about on social media. But over the years, she's built a following of more than 100,000 on Instagram and brought finance content to a younger demographic than most finance gurus typically reach. As a first-generation daughter of Filipino immigrants, Anat said she is familiar with the obstacles women like her have historically faced in their pursuit of financial freedom. 'It was, like, a generation and a half ago that we couldn't even get our own credit cards,' she said. 'So there's so much catching up that women have to do, not because we're worse at money or we're worse at logistics or math, [but] because we were structurally, purposefully held back from understanding money, accessing our own money and becoming empowered with our own money.' Yet women tend to internalize that knowledge gap, leading them to adopt the identity of being 'bad at money,' Anat said. 'We blame ourselves for not being as good at money as some of our male peers,' Anat said, 'not remembering that a lot of these men have had generations of financial confidence and generations of secrets and knowledge being passed [down] in boys clubs, from father to son, grandpa to whoever.' Anat acknowledged that 'finfluencers' alone cannot and should not close that gap, given they are not held to the same legal and ethical standards as accredited financial planners, certified public accountants or tax attorneys. Regulatory bodies including the Securities and Exchange Commission Investor Advisory Committee in recent years have pushed for broader classification of 'finfluencers' as statutory sellers and investment advisors, which would in turn subject them to higher codes of conduct. However, many are still protected via regulatory loopholes, such as exemptions for those providing only impersonal advice not tailored to any particular client or issuing such advice for free. Even 'finfluencers' who are technically subject to Federal Trade Commission and SEC guidelines, Baker said, often simply don't follow them and benefit from regulatory bodies lacking the bandwidth to rectify that. After graduating from Cal State Fullerton in 2022, Alice Samoylovich, 25, felt she had a decent handle on her savings. But when she began hearing 'finfluencers' like Tori Dunlap of @HerFirst100K talk about wealth-building strategies and investing, she thought, 'Oh s—, I need to catch up.' That feeling of panic worsened when she and her peers recently began seeing sharp drops in their 401k plans due to fluctuations in the stock market. Everyone was thinking, 'Why is that so much lower than it was before?' Samoylovich said. As the daughter of immigrants growing up in Orange County, Samoylovich said she wasn't taught much about money management: 'It was only the kids of, like, the uber-rich get to get that education.' Even now, her friends rarely speak about finances. But with the current administration 'getting more and more into heated situations internationally,' and Gen Z falling further into debt with little prospects for home ownership or sustainable retirement, Samoylovich is fearful about the economic future of the U.S. In a recent Advisor Authority study, 40% of surveyed Gen Z investors said they felt worried about their ability to pay their bills in the next 12 months, citing loans and debts as a competing financial priority. Additionally, 77% of the GenZers reported being concerned about a U.S. economic recession in the same time frame. Anat said people have even started leaving comments on her years-old videos asking her to explain what stagflation is or how to prepare for a recession. Given the widespread panic, she said it's 'all hands on deck' for online finance educators. Baker has also seen increased traffic on Dow Janes' socials, with the Million Dollar Year program's enrollment on the rise and skewing younger than in previous years. (The startup's typical demographic is women between 30 and 50 years old.) Among Dow Janes' 8,000 current program members, Baker said anxiety is mounting. As for what they should do in the face of all this economic uncertainty, Baker said, 'What we always come back to is, control what you can control.' Maybe tariffs do upend the market, she said, but 'if you're investing for a long enough time horizon, generally, historically, the market is up over time.'
Yahoo
a day ago
- Yahoo
Generation Z employees say they rely on AI for emotional intelligence
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. Generation Z employees are increasingly using artificial intelligence tools for emotional intelligence concerns in the workplace, such as understanding a manager's tone in an email and drafting an appropriate reply, according to a June report from In a survey, 76% of Gen Z workers said they use AI chatbots. Among those, 94% said they've used AI to navigate workplace issues. Nearly 3 in 10 said they do so 'all the time,' while 40% do it often. 'Gen Z workers often feel more validated and confident after consulting AI because these tools offer immediate, judgment-free feedback in a format that feels safe and familiar to this generation raised in a digital world,' said Kara Dennison, head of career advising at In the survey of more than 1,000 full-time U.S. Gen Z workers, nearly half said they change how they communicate with others after using AI; a third respond more assertively than usual, and 26% apologize or take responsibility. Gen Z workers said they most commonly use AI chatbots to interpret tone, with 75% saying they've asked a chatbot to analyze an email, Slack message or other digital communication. They've also used AI for emotionally charged, sensitive situations that involve miscommunication or direct conflicts with managers or co-workers. Although many Gen Z workers say AI chatbots help them process workplace conflicts, it isn't always positive. Forty-three percent said AI reinforced their biased reaction or beliefs, and 17% said AI has made them less likely to take personal responsibility. 'One of the biggest risks is the elimination of personal responsibility,' Dennison explains. 'If an AI tool consistently validates a user's perspective without challenging it, it can reinforce a fixed mindset, enabling blame-shifting rather than self-reflection.' Dennison noted the potential upsides of AI use but emphasized that chatbots can't address the nuances or empathy needed in sensitive situations. For instance, AI can't interpret body language, understand power imbalances or navigate organizational context, she said, adding that AI users may miss out on professional development or real-world feedback from workplace conflicts. 'Healthy workplace communication depends on empathy, active listening and accountability,' Dennison said. 'AI can complement that process, but it cannot replace it.' More than half of Gen Z workers see AI tools as a co-worker or even a friend, and nearly half said they'd rather ask a chatbot a question than consult their boss, according to another report from Workers said they use AI to complete tasks, make tough decisions, seek advice and find mental health support. In the midst of AI use and workplace conflicts, HR pros can help create an emotionally healthy culture, according to a report from McLean & Co. Instead of avoiding emotions at work, employers can be 'proactive about how emotions and work can coexist to enable workplaces where everyone can thrive,' McLean advised. Recommended Reading AI job postings are on the rise, notably in software development, Indeed says
Entrepreneur
a day ago
- Entrepreneur
How India's Digital Natives are Redefining Financial Services
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Ask a 20-year-old today about their money goals; chances are, they'll offer a detailed perspective on why financial literacy and independence are essential. Younger generations—particularly Gen Z and Millennials—engage with financial services earlier and more actively than previous generations, showing increased seriousness about financial planning, savings, and investment. Delhi-based financial analyst Ayush Dawar shares, "I aspire for financial freedom, having enough passive in come or resources to cover life's needs to lead a life full of adventure, creativ ity, and generosity." Gen Z is a significant and rapidly growing segment of the customer base for BFSI (Banking, Financial Services, and Insurance). From a barter system to the Unified Payments Interface (UPI), India's financial transformation is a noteworthy one, one that leverages technology to its finest. "As the first truly tech-native generation, Gen Z's financial habits are deeply intertwined with technology. They're app-first for everything – payments, expense tracking, and even diving into invest ments early," shares Adarsh Agarwal, chief actuary and product officer, Go Digit General Insurance. From mobile applications and e-signature capabilities to offering alternative investments and gamification, financial services providers are constantly evolving with new offerings. Digital Over Physical Kadence International reports that 67 per cent of Indian youth are now using neo-banking services, moving away from traditional physical banks. Reserve Bank Innovation Hub observed that most of the Gen Z participants hadn't visited a physical bank branch or ATM over the last three years (at a minimum). Convenience, speed, and accessibility are the reasons. However, those preferring the tradi tional route hold human interaction and relationship managers integral. "Gen Z thinks about money very differently. They have grown up in a digital world where they expect things to be instant, transpar ent, and intuitive. Unlike millennials who often lean on traditional banking, Gen Z questions everything from hidden fees to outdated processes," shares Vinay Bagri, CEO and Co-founder, Niyo. Hence, financial institutions must adopt a digital-first approach with a simple and cool UI/UX. "We also integrate visa and flight booking, insurance, and rewards in one seamless app because Gen Z doesn't want ten apps for ten purposes," adds Bagri. In order to stay abreast, Indian banks are working to improve their user interface (UI) and user experience (UX) to enhance customer satisfaction and en gagement. Case in point, with the iMobile app, ICICI Bank is providing personalised offers and alerts based on spending pat terns and account behaviour, i.e. receiving targeted promotions for credit cards or in surance plans that align with a customer's financial habits Tailored offerings Agarwal feels tailoring products ac cording to the needs and trends of the hour is crucial to align with the values and needs of a target market like Gen Z. A 2024 Redseer report stated that personal loans made up 40 per cent of Gen Z's borrowing, followed by credit card spending at 27 per cent. Pratik Shah, partner and national leader – Financial Services, EY India, earlier noted that credit cards are a growing trend with 46 per cent of Gen Z choosing them for rewards and discounts, and 36 per cent for convenience. Education and healthcare are key cat egories under financing. Akshay Mehrotra, co-founder and CEO of Fibe, shares that the startup identified the shift in the mindset of Gen Z early in its journey. "Gen Z doesn't want to live paycheck to paycheck—they seek financial flexibility and the ability to access their earnings when needed," he shares. Great Learning's 2024 report stated that 83 per cent of freshers intended to upskill in FY25. "With upskilling essential in today's fast-paced world, our education financing solutions support young professionals to up grade their careers and stay ahead in an ever evolving job market," Fibe's chief shares. It is also enabling customers to tap into their mutual funds. "We also offer Loan Against Mutual Funds, enabling users to unlock val ue from their investments without redemp tion… We see Loan Against Mutual Fund a hit with Gen Z, and they love the idea of Interest only product, and we have high demand coming in from them," Mehrotra notes. A loan against mutual funds lets investors use their mutual fund units as security to borrow money. The lender checks the value of these units and of fers a loan based on a percentage of that value. This is a good option for those who need money but don't want to sell their investments, allowing them to keep earning potential returns. Building Ecosystems Fintech players are levelling their game by going the extra mile to attract and retain existing and potential customers, particularly Gen Z. For instance, Go Digit, to encourage a shift to a more environ mentally friendly transportation mode, offers EV Motor add-on with competitive premium rates. Beyond the product, Niyo is creating an ecosystem that speaks the Gen Z language. "Our community platform helps them connect with like minded peers across the country, share knowledge, and feel empowered. We share educational content and collabo rate with influential voices in travel. Gen Z doesn't seek complexity, they want clarity, speed, and rewards," shares Bagri. The Finfluencers Landscape The rise of financial influencers (finflu encers) and content has made youngsters comfortable with topics related to money matters. As of December 2024, India had approximately 232,000 finfluencers. This connection is being tapped by institu tions, startups, and corporations. Eighty two per cent of retail investors in India have acted on financial advice from influ encers. "The relatability and authenticity of the influencer are the primary factors that drive their trust. Insurance compa nies are also leveraging brand ambassa dors who embody the values and beliefs of Gen Z," says Agarwal. Calling social media today is what word-of-mouth was two decades ago, but effective, Bagri shares, "Gen Z is constantly learning from people they trust online. Whether it's a finance creator explaining forex charges or a travel vlogger talking about our card benefits abroad, authenticity matters." India's private banks, such as HDFC Bank, are collaborating with influencers on social media to promote and establish their products. "Whether it's busting forex myths on a travel vlog or showing real-time currency savings on a trip to Bali, we meet Gen Z where they scroll," Bagri adds. By 2030, Gen Z is expected to make up 36 per cent of India's workforce and con tribute nearly USD 730 billion in direct spending. This growing economic influ ence means financial institutions must continuously adapt, offering smarter, simpler, and more intuitive services that speak Gen Z's language.
