Latest news with #Rossman
CNBC
22-07-2025
- Business
- CNBC
Is the side hustle boom over? Fewer Americans have side gigs for the first time since 2017
For the first time in eight years, the number of Americans with side hustles is shrinking, a new survey shows. Twenty-seven percent of working Americans report having a second stream of income, according to a survey published by financial services company Bankrate on July 9. That's a decrease of nine percentage points from 2024 — when 36% of Americans held side hustles — and the lowest percentage observed since 2017, Bankrate data shows. "I would attribute the drop [to the fact that] the job market has been solid," says Bankrate senior industry analyst Ted Rossman. "I know it still feels like everything is expensive, but we've had wage growth outpacing inflation for a few years now, which has given people time to catch up a bit." Just two years ago, American side hustles were at an all-time high, the report says. Many U.S. adults used their second gigs — from walking dogs or driving Ubers to running Etsy shops — to cover their regular living expenses during an unpredictable post-pandemic economic environment with record-high inflation. Now, more Americans with side hustles are using their extra cash for discretionary purposes, the Bankrate survey found. The shift shows that people are feeling less economically anxious, says Rossman — even amid cost-of-living uncertainty around U.S. President Donald Trump's tariff policies and a difficult labor market for many job seekers. If the economy turns further downward, some Americans could return to their side hustles, Rossman says — particularly those between the ages of 18 and 44, who are already comfortable balancing multiple income streams and are earlier in their careers than other demographics. Bankrate's survey was conducted between June 2 and June 4, and as recently as May, unemployment and layoff rates were relatively low. Since then, however, inflation has crept upward: The consumer price index rose 2.7% over the last year through June, slightly higher than the 2.4% rate in May, the Bureau of Labor Statistics reported on July 15. In recent years, Americans felt incentivized to take on side hustles when inflation was high and the labor market was friendly to job-seekers, says Kayla Bruun, a lead economist at business intelligence firm Morning Consult who's also studied side hustles in the U.S. Launching a side hustle alongside a full-time job can be difficult, and employed people in a cooling labor market tend to be somewhat risk-averse, she says. But a rise in inflation could create more "urgency for side gigs," she notes. The country's side hustle culture in 2023 may have been a "once-in-a-generation" peak, adds Rossman — but he still forecasts a rebound in the percentage of Americans with side gigs. "I don't think the decline will continue," he says.
USA Today
27-06-2025
- Business
- USA Today
To tip or not and how much? Here's how people feel about tipping.
Tipping – how much to tip or whether to do it – has always been a controversial topic. A new Bankrate survey found that 63% of Americans had at least one negative view toward tipping, but most are leaving a gratuity. That's up from 59% in last year's survey. "A lot of people complain about tipping but tip anyway — the 'guilt tipping' phenomenon," Ted Rossman, Bankrate senior industry analyst told USA TODAY. Added Matt Schulz, chief consumer finance analyst with Lending Tree, which released a separate study looking at tipping levels in different states: 'I don't think there's any question that there's some tipping fatigue going on right now.' Tipping is a surcharge Forty-one percent of those surveyed felt businesses should pay their employees better rather than relying so much on tips, another 41% felt that tipping culture has gotten out of control and 38% were annoyed with the pre-entered amounts for tips on checkout screens. "Yet Starbucks has said that nearly half of customers who pay with a credit or debit card leave a tip," Rossman said. "That has to be way more than the percentage who used to put bills or coins in the old-fashioned tip jar. These electronic tip prompts work, even if customers grumble about them." Tipping has become a surcharge of sorts, said Rossman. "Tipping is a way for employers to funnel more money to their employees without having to foot the bill. It's a way to raise prices without raising prices," he said. Many businesses and customers are sensitive to price hikes, given how much prices have increased in recent years. Technology is enabling more businesses to ask for tips at the point of sale. "We're being asked for more tips in more places, and I believe the trend will continue," said Rossman. Sixteen percent of those surveyed said they'd be willing to pay higher prices if we could do away with tipping, while 14% said they are confused about who and how much to tip. Ten percent said they always tip the same amount regardless of quality of service. How much are people tipping? Thirty-five percent of people who responded in the Bankrate survey said they tip at least 20% at sit-down restaurants. That's down from 37% last year. Fifty-eight percent said the amount they tip is most influenced by the quality of service. Another 26% said they feel good when they leave a generous tip. Tipping differs by generations The likelihood of tipping seems to increase with age, with Gen Zers and millennials offering tips less often than their older counterparts. Twenty-five percent of Gen Zers and 45% of millennials said they tip their hair stylist/barber, compared to 67% of Gen Xers and 71% of boomers. At sit-down restaurants, 43% of Gen Zers always tipped and 61% of millennials did the same compared to 83% of Gen Xers and 84% of boomers. And 23% of Gen Zers and 36% of millennials always tipped taxi/ride share drivers versus 59% of Gen Xers and 61% of boomers. Asking for high tips can turn off customers 'Technology has made it so easy to tip everybody for everything, in any amount you can think of, and businesses are definitely taking advantage of that.' Schulz of Lending Tree told USA TODAY. But businesses run the risk of overplaying their hand, he said. 'If a restaurant is asking for a 30% or 35% tip on the main screen, they run the risk of running off potential repeat customers,' Schulz said. Lending Tree took U.S. Department of Agriculture data looking at money spent on food away from home, including tax and tip, and removed each state's sales tax figures to come up with tip data in a new study. Americans spent $77.6 billion on tips for food purchases in 2023, the latest year in which data is available, according to Lending Tree. On average, full-service restaurant patrons tipped 15.02%. When including limited-service restaurants, drinking establishments and other similar venues, that percentage falls to 6.75% Americans are also increasingly dining out. In 2000, spending on food away from home accounted for 49.4% of Americans' food budgets. In 2023, that share had risen to 55.7%, the highest percentage going back to at least 1997, said Lending Tree. Which states have the best, worst tippers? Tips in New Hampshire averaged 16.07%, leading the nation in tips, according to Lending Tree. The District of Columbia came in second at 12.65% and South Carolina came in third at 11.17%. Rounding out the bottom for tip percentages was Idaho (5.10%), Mississippi (4.91%) and Utah (4.09%). One caveat that Schulz points out on that data: the state tip rankings are based on the percentage of spending on tips at all places where food is purchased. So if people in a state tend to dine at full-service restaurants, it stands to reason that their overall percentage spent on tips would be higher. The same is true for the opposite, said Schulz, if people in a state tend to go to fast food or quick service establishments, the total percent they spend on tipping may be less. 'So it's not necessarily a judgment on people's generosity when it comes to tips,' he said. Where do people spend the most on dining out? Washington, D.C. diners are spending the most per-capita on eating out, according to the study. People spent more than $3,500 more dining out than any other state in 2023: $10,291 compared to second-place Nevada, which was $6,752. Three of the four top states in per-capita spending on dining were in the west, with Hawaii ($6,628) and California ($5,072) ranking third and fourth. Northeastern states made up much of the rest of the top 10, including Massachusetts ($4,626), New York ($4,424), Rhode Island ($4,412) and New Hampshire ($4,224). Midwestern and Southern states spent the least per-capita on eating out. West Virginia residents spent the least at $2,597, followed by Iowa ($2,760), Wisconsin ($2,848), Arkansas ($2,877) and Alabama ($2,898). Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
Yahoo
24-06-2025
- Business
- Yahoo
Can you pay college tuition with a credit card?
Given the potentially massive expense associated with college tuition, it's understandable that students and parents want to squeeze every possible benefit out of their payments. Paying for college tuition with a credit card to earn rewards — or to earn a welcome bonus with a sizable spending requirement — is one such strategy that comes up frequently. Yes, you can technically pay your college tuition with a credit card. However, this payment option is unlikely to make financial sense in most cases. Earning a college degree is one way to advance your education and broaden job opportunities. It can also put you into some of the most costly debt you will take on in your lifetime. College tuition is expensive. College Board estimates that it costs $43,350 on average to earn a bachelor's degree at a private university and $11,610 to earn a four-year degree at an in-state university. Perhaps unsurprisingly, Americans today carry a staggering 1.7 trillion dollars in college debt. So, can you pay tuition with a credit card? Some colleges allow this, and if you're spending the money either way, shouldn't you get some rewards back in the process? The short answer is yes, you might get rewards, says Bankrate credit card senior industry analyst Ted Rossman, but they can come at a steep price. The only time it might make sense to pay for tuition with a credit card is: If you're able to produce rewards that outweigh the fees. If you're able to responsibly earn a credit card's welcome offer. If you have a long promotional APR offer. However, outweighing the cons of using a credit card to pay for tuition is no small feat. The key to making this work, though, is to pay the balance in full. 'I think even going for a zero percent promotional rate is too risky because this could be a big charge, and the interest rate would skyrocket at the end of the term,' says Rossman. 'Student loans have much more favorable interest rates and repayment terms than credit cards.' To be clear, paying college tuition with a credit card almost never makes sense. Here are some common reasons: You will be subject to a high APR — on average over 20 percent — if you don't pay your tuition payment off in full and on time. Your credit score is at risk. Your college simply may not accept credit cards as a payment method. On top of these reasons, you may get hit with fees. Colleges that accept credit cards will often charge a processing fee to complete your payment. These fees are typically 2.5 percent or more of the tuition charge, which can add up quickly. To put that into perspective, if you're charging $12,000 in tuition, you will pay an additional $300 in fees. To apply for financial aid you will need to complete the Free Application for Federal Student Aid (FAFSA) every year to see how much aid you are eligible for. FAFSA allows the Department of Education to see how much aid you qualify for. Scholarships and financial aid can come in the form of grants, work-study programs, low-interest loans and scholarships. FAFSA is not the only way to qualify for a scholarship. Many students can obtain partial or even full scholarships for academic success, athletics, extenuating circumstances such as a disability, being part of a protected minority class or falling below the federal poverty line, just to name a few. There are scholarships available from a variety of institutions, so do your research before paying your tuition in full. The U.S. Department of Education offers tools to help you find and apply for scholarships you may qualify for. If you can't find a scholarship that fits your needs, consider reaching out to your university directly. Many institutions offer installment plans to pay for your tuition in more manageable installments, rather than all at once. While paying your tuition with a credit card is possible, it's rarely the smartest financial move. Although you can earn decent rewards by having one of the best student credit cards, those will disappear fast if you carry a balance. On top of the interest you'll pay on that balance, colleges that allow card payments tend to charge processing fees for each payment, further negating the value of your rewards. It's also important to be aware that many college students end up in credit card debt, as well as student loan debt, before leaving school. In the long run, you'll likely be much better off exploring scholarships and types of financial aid that are not subject to high interest rates when paying your tuition.
NBC News
17-06-2025
- Business
- NBC News
JPMorgan Chase unveils new Sapphire Reserve card perks and $795 annual fee
JPMorgan Chase is betting that a long list of new perks will keep affluent Americans hooked on its Sapphire Reserve card, despite a hefty bump in its annual fee. The bank on Tuesday unveiled an update to its premium credit card, which will now carry a $795 annual fee. That is a 45% jump from its previous level and the card issuer's largest price increase for the Sapphire since its 2016 launch. But JPMorgan says users will now get more than $2,700 in annual benefits when the updated card launches on Monday. That includes most of its previous benefits, along with new ones tied to how customers earn and spend points on travel and dining. For instance, the bank is touting a new redemption program that doubles the value of points used for select travel offers and a new $500 annual credit at its collection of hotels and resorts. There is also a new $300 dining credit at restaurants that are part of the Sapphire Reserve Exclusive Tables network, a $300 credit for purchases at StubHub or Viagogo, and free subscriptions to Apple TV+ and Apple Music, worth $250 per year, JPMorgan said. Customers who spend at least $75,000 annually on their cards unlock other perks, including top-tier status at Southwest Airlines and IHG Hotels and Resorts. JPMorgan also introduced a new Sapphire Reserve business card with a $795 annual fee and similar perks as the consumer card, along with credits for ZipRecruiter and Google Workspace. That positions the bank squarely against American Express, which has had a business version of its comparable Platinum card for decades. Upscale ambitions JPMorgan, the biggest U.S. bank by assets, shook up the card industry with the launch of the Sapphire Reserve almost a decade ago. The bank cribbed from a playbook established by AmEx by bundling perks around travel and dining, and later opened its own network of luxurious airport lounges. But JPMorgan introduced its premium card with signing bonuses and credits that almost made getting one a financial no-brainer, forcing other issuers to boost their card offers in response. Now, with JPMorgan heading upmarket with the Sapphire Reserve, the bank is at risk of alienating customers who may opt to downgrade to a Sapphire Preferred card or offerings from AmEx or Capital One, said senior Bankrate analyst Ted Rossman. 'When the Sapphire Reserve first came out, it was a solid middle-class play that offered champagne travel on a beer budget,' Rossman said. 'These premium cards are going more luxury, and I wonder if the $800 fees are becoming too much for some to stomach.' That could be by design, according to Rossman. AmEx and Capital One have had to rein in access to airport lounges because of overcrowding, and some users have complained that their premium cards no longer feel as special. Whether cards like the Sapphire Reserve still make sense at $795 in annual fees depends on if customers will take advantage of enough of the new perks, Rossman said. Later this year, AmEx will introduce updates to its Platinum cards, which currently have a $695 annual fee. AmEx will likely also raise its annual fee while adding more perks, Rossman said. 'These high-rate cards are not for everyone, that's for sure,' said KBW analyst Sanjay Sakhrani. But AmEx and JPMorgan have pursued a subscription-type business model where an ever-rising level of perks make a compelling value proposition for certain customers, he said. 'They feel that it creates a flywheel around keeping people engaged and spending in the system,' Sakhrani said. 'Even at $800 in annual fees, I don't think just anyone can provide the breadth of perks that you get on those cards.'
CNBC
17-06-2025
- Business
- CNBC
JPMorgan Chase unveils new Sapphire Reserve card perks and $795 annual fee
JPMorgan Chase is betting that a long list of new perks will keep affluent Americans hooked on its Sapphire Reserve card, despite a hefty bump in its annual fee. The bank on Tuesday unveiled an update to its premium credit card, which will now carry a $795 annual fee. That is a 45% jump from its previous level and the card issuer's largest price increase for the Sapphire since its 2016 launch. But JPMorgan says users will now get more than $2,700 in annual benefits when the new perks launch on June 23. That includes most of its previous benefits, along with new ones tied to how customers earn and spend points on travel and dining. For instance, the bank is touting a new redemption program that doubles the value of points used for select travel offers and a new $500 annual credit at its collection of hotels and resorts. There is also a new $300 dining credit at restaurants that are part of the Sapphire Reserve Exclusive Tables network, a $300 credit for purchases at StubHub or Viagogo and free subscriptions to Apple TV+ and Apple Music, worth $250 per year, JPMorgan said. Customers who spend at least $75,000 annually on their cards unlock other perks, including top-tier status at Southwest Airlines and IHG Hotels and Resorts. JPMorgan also introduced a new Sapphire Reserve business card with a $795 annual fee and similar perks as the consumer card, along with credits for ZipRecruiter and Google Workspace. That positions the bank squarely against American Express, which has had a business version of its comparable Platinum card for decades. JPMorgan, the biggest U.S. bank by assets, shook up the card industry with the launch of the Sapphire Reserve almost a decade ago. The bank cribbed from a playbook established by Amex by bundling perks around travel and dining, and later opening its own network of luxurious airport lounges. But JPMorgan introduced its premium card with signing bonuses and credits that almost made getting one a financial no-brainer, forcing other issuers to boost their card offers in response. Now, with JPMorgan heading upmarket with the Sapphire Reserve, the bank is at risk of alienating customers who may opt to downgrade to a Sapphire Preferred card or offerings from Amex or Capital One, said senior Bankrate analyst Ted Rossman. "When the Sapphire Reserve first came out, it was a solid middle-class play that offered champagne travel on a beer budget," Rossman said. "These premium cards are going more luxury, and I wonder if the $800 fees are becoming too much for some to stomach." That could be by design, according to Rossman. Amex and Capital One have had to rein in access to airport lounges because of overcrowding, and some users have complained that their premium cards no longer feel as special. Whether cards like the Sapphire Reserve still make sense at $795 in annual fees depends on if customers will take advantage of enough of the new perks, Rossman said. Later this year, Amex will introduce updates to its Platinum cards, which currently have a $695 annual fee. Amex will likely also raise its annual fee while adding more perks, Rossman said. "These high-rate cards are not for everyone, that's for sure," said KBW analyst Sanjay Sakhrani. But Amex and JPMorgan have pursued a subscription-type business model where an ever-rising level of perks make a compelling value proposition for certain customers, he said. "They feel that it creates a flywheel around keeping people engaged and spending in the system," Sakhrani said. "Even at $800 in annual fees, I don't think just anyone can provide the breadth of perks that you get on those cards."
