Latest news with #AmericanHouseholds
Forbes
03-07-2025
- Business
- Forbes
Vet Bills Are Soaring in 2025 — These Tips Could Help You Save Thousands
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. A generational uptick in spending for pet parenthood, driven in part by Gen Z, means that millions are being hit with vet bills, including unexpected emergency costs. A March 2025 Colliers report cites data that 66% of American households now own at least one pet. The Rover pet site's recently released 'True Cost of Pet Parenthood Report for 2025' reveals that dog parents can expect to spend around $34,550 for lifetime care over a decade, and cat owners roughly $32,170 over 16 years. Veterinary expenses are expected to surge 11% this year alone, with prices of treats rising 85% and costs of cleaning products skyrocketing 183%. It's no surprise, then, that pet parents are feeling squeezed. Rover reports that 48% of owners stress over the rising cost of pet care over their loved ones' lifetime, and 28% are already worried about affording their pets' needs right now. In order to make do, 33% of pet owners have cut back on groceries, entertainment or other essentials to prioritize pet costs, prompting concerns about the financial burden of pet ownership. Faced with these costs, pet owners may find that tools such as a CareCredit card are viable options to help finance pet insurance and unexpected emergency expenses. Living paycheck to paycheck has become an unfortunate reality for the majority of Americans. A 2023 study revealed that over three quarters of Americans (78%) live paycheck to paycheck, a worrying phenomenon that increased 6% from the previous year. The study highlighted that around the same percentage of Americans (71.93%) in this precarious financial situation have less than $2,000 in savings and that the generation most likely to be pet owners—members of Gen Z— are also the least likely to have a substantial safety net, with nearly 69% having less than $2,000 in savings. Worse, a study conducted by Symphony revealed that pet owners frequently underestimate the cost of lifetime care, with almost three out of four (74%) pet owners having faced unexpected pet care costs exceeding $250. Meanwhile only 31% of pet owners said they could comfortably manage a huge pet expense. Financial precarity can render pet owners vulnerable to emergencies, especially when impromptu surgery can cost anywhere from $300 to $10,000, according to MarketWatch. Routine care, such as vaccinations, dental cleanings and preventative treatments, also contributes to the increasing financial strain, but with some budgeting and tools like CareCredit and pet insurance, owners can secure medical treatment for their nonhuman loved ones, and get help with financing options that section expensive procedures down to manageable payment plans. Easy application: Pet owners can apply for CareCredit quickly, either online or in-person at participating vet offices. Payment flexibility: CareCredit offers various payment plans, some with no interest for promotional periods (from six to 24 months). Wide acceptance: CareCredit is accepted within a large network of veterinary clinics and hospitals, making it accessible for pet owners. Versatility: The card can be used for a spectrum of medical needs and services, including but not limited to: medical specialists like dentists and eye doctors, medical imaging and lab work, pet insurance, funeral and cremation services, and drugstores and prescriptions. Best of all, you can use the CareCredit card account the moment your application is approved, without having to wait for the card to come in the mail. It's truly a card built for emergencies, where you can apply from the veterinary office and use it in seconds. While CareCredit is a stellar option for emergencies, it's important to stress that a solid plan to finance care for the entirety of your pet's life is critical. Here are a few options pet owners should look into: Pet insurance: Many pet owners opt for pet insurance, which can help cover large portions of medical bills including surgeries, prescription medications and emergency care. Some insurance providers even offer wellness plans and behavioral therapy, which can cover routine care such as vaccinations and checkups. A variety of plans are available across providers tailored to different needs, ranging from basic accident coverage to comprehensive health plans. Emergency savings fund: Setting aside a portion of your budget each month for emergency pet expenses can alleviate the stress of covering surprise vet bills. Although it takes time to build up a nest, having a cushion for your pet's care will reduce reliance on credit cards and loans. Payment plans with veterinary clinics: Some veterinary offices provide in-house financing or payment plans. These plans may offer more flexibility than traditional financing options and could have lower interest rates. Source: Forbes Advisor research. Costs are based on plans with unlimited annual coverage ($100,000 for Lemonade), a $250 deductible and 80% reimbursement level. Chewy's Essential Plus plan does not offer 80% reimbursement, rates are based on 90% reimbursement. Source: Forbes Advisor research. Costs are based on plans with unlimited annual coverage ($100,000 for Lemonade), a $250 deductible and 80% reimbursement level. Chewy's Essential Plus plan does not offer 80% reimbursement, rates are based on 90% reimbursement. Being proactive about your pet's health and finances can help mitigate unwanted surgeries and costs. Taking your pet for regular checkups can help catch health issues before they become a debt quicksand. Estimate your pet's average health care costs and set aside funds each month to prepare for inevitable expenses. And always research providers and shop around for competitive pricing to make sure you're getting the best services for your dollar.
Yahoo
23-06-2025
- Business
- Yahoo
Should You Use Your 401(k) To Pay Off Your House?
Saving for retirement, whether it's through an individual retirement account (IRA) or 401(k), is typically top of the list for everyone's financial goals. However, when it comes to long-term personal finances, how can your 401(k) contributions combat your real estate woes? For You: Learn More: Using your 401(k) plan is not generally the best way to pay off your mortgage early or even subsidize your monthly payments. Still, if you're thinking of going in that direction, you should know what the pros and cons are of using your retirement money to get your mortgage paid, along with the steps you should take to do it. Here are the things you should factor into your decision, along with consequences you won't want to overlook. The main benefit to using your traditional 401(k) to pay off your house is that you'll no longer have to worry about making mortgage payments. If you're like most American households, this will provide a significant boost to your monthly cash flow, possibly in the thousands of dollars. You'll also avoid paying potentially tens of thousands of dollars in interest over the life of your mortgage. This alone could make the idea of paying off your home early make sense. Another factor that many overlook when it comes to paying off your mortgage is that it can make the transfer of wealth to your heirs easier and less costly. If you pass on a 401(k) to your heirs, all of the money in the account becomes taxable as your heirs withdraw it. But in a house, your money can potentially pass to your heirs tax-free. This is because upon your death, the cost basis in your house 'steps up' to the current market valuation. If your heirs sell the house, they will likely pay only small or even nonexistent capital gains. That could amount to tax savings of tens or even hundreds of thousands of dollars for your beneficiaries. Read Next: In most cases, taking money out of your 401(k) plan to pay off your mortgage is a bad idea. From just a strictly mathematical perspective, you're likely earning more in your 401(k) plan than you are paying in interest on your mortgage. Even if you have a relatively conservative 401(k) allocation, for example, you're likely earning at least 5% on your money. Considering that most existing mortgages are costing homeowners less than 5%, the math doesn't make sense. Another huge drawback is that you'll owe ordinary income tax on any money you withdraw from your 401(k). If you're in a high tax bracket, the combined hit to your nest egg can approach 50%, meaning your $100,000 withdrawal to pay off your mortgage is really only worth $50,000. The last significant drawback to paying off your mortgage this way is that it will wreak havoc on your retirement savings plan. When you take money out of your 401(k), you not only lose the actual amount you withdraw, but you also miss out on its future growth. If you take $100,000 out of your 401(k) at age 40, for example, you'll be missing out on 25 years of growth, assuming you plan to retire at 65. At even just a 6% annual rate of return, that money could have grown to nearly $450,000 by age 65. If you're looking to analyze the real damage that a withdrawal can cause to your retirement plan, look at the total amount you'll be losing in the future, not just the amount you're planning to withdraw today. The bottom line is that if you're considering drawing down your 401(k) plan to pay off your house, keep these dos and don'ts in mind: Compare the interest rate you're earning in your 401(k) with the rate you're paying on your mortgage. Have a plan for what to do with the excess cash flow if you pay off your home. Factor in the tax ramifications of withdrawing from your 401(k), including any penalties. Replace the money you withdrew from your 401(k) plan as rapidly as possible by maxing out your contributions. Fritter away the extra money in your monthly budget after paying off your mortgage. Pay off your home with your retirement money if you have a low-rate mortgage. Decimate your nest egg if you have no plan to restore it. Forget that the real amount you're withdrawing from your 401(k) should include potential future gains as well. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Cities You Need To Consider If You're Retiring in 2025 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Should You Use Your 401(k) To Pay Off Your House? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
16-06-2025
- Business
- Bloomberg
US Households Will Keep Supporting Stocks, Goldman's Kostin Says
US households will provide key support for the stock market through the growing influence of their retirement savings, according to Goldman Sachs Group Inc. strategists. The team led by David Kostin expect American households to directly purchase $425 billion worth of US equities this year, trailing only corporates at $675 billion as a source of demand for stocks.
New York Times
12-06-2025
- Business
- New York Times
Trump Steel Tariffs Expanded to Hit Home Appliances
Washing machines, dishwashers, refrigerators and other common household appliances made with steel parts will soon be subject to new tariffs, the Commerce Department said Thursday. The department said in a notice that levies would take effect on so-called steel derivative products on June 23 and will be set at 50 percent. While many products have become subject to higher import taxes since Mr. Trump began implementing his aggressive trade policy this year, Thursday's announcement marked one of the first times that everyday consumer goods were specifically targeted. The result will likely mean higher costs for American households. The new tariffs will be assessed based on the level of steel content in each import, the government said. Thursday's move came one week after the Trump administration doubled tariffs on steel and aluminum imports to 50 percent. They follow wave after wave of similar moves that have targeted cars, auto parts and a host of other goods from many of America's trading partners. The government said that the action was necessary to address 'trade practices that undermine national security.' Note: Goods from Canada and Mexico that fall under the U.S.M.C.A. trade pact — the agreement that replaced NAFTA — are not subject to tariffs that took effect in March targeting those countries. The higher metal levies have already rankled close allies that sell to the United States, including Canada, Mexico and Europe. They have also sent alarms to automakers, plane manufacturers, home builders, oil drillers and other companies that rely on buying metals. Despite Mr. Trump's tariffs, measures of inflation have so far remained muted. Price increases were relatively stable last month, government data showed on Wednesday, and the costs of appliances in particular have increased more slowly than overall inflation did last month. Economists caution, however, that the growing list of tariffs could begin to push up prices more noticeably later this year. Mr. Trump's economic advisers have tried to downplay the economic toll their trade actions take on American consumers. At a Senate hearing on Thursday, Treasury Secretary Scott Bessent noted that many companies are opting against passing the costs of tariffs onto their consumers and said that inflation remains under control. 'Inflation in the U.S. is at its slowest pace since 2021 on decelerating cost increases for shelter, food, and energy,' Mr. Bessent said. 'After four years of price increases diminishing the U.S. standard of living, inflation is showing substantial improvement due to the administration's policies.' Colby Smith contributed reporting.
Globe and Mail
04-06-2025
- Business
- Globe and Mail
Trump's tariffs would shrink U.S. economy, raise inflation despite cutting deficits, CBO says
U.S. President Donald Trump's sweeping tariff plan would cut deficits by US$2.8-trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall, according to an analysis released Wednesday by the Congressional Budget Office. The numbers were revealed in a letter sent to Democratic congressional leadership outlining how the Trump administration's plan to impose wide-ranging tariffs on countries around the world will affect American households. Baked into the CBO analysis is a prediction that households would ultimately buy less from the countries hit with added tariffs. The budget office estimates that the tariffs would increase the average annual rate of inflation by 0.4 percentage points in 2025 and 2026. Opinion: Tariff turmoil could continue for months. Here are five suggestions for what to do with your money The budget office's model also assumes that the tariffs, announced through executive action between January and May, will be in place permanently. Since the analysis was conducted, a federal court struck down sweeping tariffs that Trump invoked under an emergency-powers law. An appeals court allowed the Trump administration to continue collecting the tariffs while the case goes through appeals. Largely confirming what other economic models have predicted, the CBO's estimations show that the tradeoff for a US$2.8-trillion deficit reduction over 10 years would be an overall reduction in household wealth. In addition, the tariffs would shrink the economy, or reduce the rate of the gross domestic product by 0.06 percentage points per year. The Penn-Wharton Budget Model's April report predicted that the Republican president's tariffs would reduce long-run GDP by about 6 per cent and wages by 5 per cent. A major caveat of the CBO's estimates is written into the report – its estimates are 'subject to significant uncertainty, in part because the Administration could change how the tariff policies are administered.' Trump has often announced changes and pauses to his tariff plans on his social media platform. In April, he posted that he was backing off his tariffs on most nations for 90 days and jacking up the tax rate on Chinese imports to 125 per cent. Last week, he announced plans to hike the tariffs on steel and aluminum imports to a punishing 50 per cent, a move that's set to hammer businesses and likely push up prices for consumers even further. The 50 per cent tariffs went into effect Wednesday. The Organization for Economic Cooperation and Development forecast Tuesday that the U.S. economy, the world's largest, will slow growth to just 1.5 per cent in 2026. A representative from the White House did not respond to an Associated Press request for comment
