October is when I start scouring the internet for facts and figures and articles exploring trends in personal finance. It’s Halloween season, which means tricks, treats, and scary characters to raise your blood pressure. As always, I want to keep you interested in positive developments with money and salute you for the good work you do.
Let’s go.
10 billion dollars
My daughter’s text message last week — “This can’t be real, right?” about an email purporting to come from the Social Security Administration — was looking for this statistic and sent it to me. According to the Federal Trade Commission, consumer fraud costs exceeded $10 billion in 2023. My response to my daughter was, “Don’t click, don’t call.” This is good advice against smishing, phishing, vishing, and calls that attempt to separate you from your personal information. Don’t be fooled.
2.9%
Numbers can be deceiving or they can reveal the whole picture. It’s clear that this number is low because it reflects the amount of disposable income Americans had saved in July. At the peak of the pandemic, when government relief supplies poured in and fear reigned, that number was more than 30%. I think this reflects the struggle of households across the country dealing with the current economic situation. Mentioning the 10% to 15% savings rate recommended by USAA may seem tone-deaf. However, it is appropriate to encourage them to do all they can and do more when they can. Better times are ahead.
$48,000
Over the past decade, the average transaction cost for a new car has risen from just over $30,000 to nearly $50,000. Vehicle prices will continue to rise, even if they fall slightly in 2024, making things increasingly difficult for consumers. At USAA, we continue to believe that the loan term goal should be 60 months. However, since the average loan interest rate is around 7%, your monthly payment will equate to around $950. It’s probably a big part of your spending plan. I don’t have a perfect answer, but I do know that when you factor in the total cost of ownership, including loans, insurance, taxes, gas, maintenance, etc., that number can quickly become scary. Shop and plan carefully.
88%
The Thrift Savings Plan participation rate for military members eligible for the Blended Retirement System is 88%. This is a solid turnout and definitely something to look forward to. However, even in 2023, more than 15% of BRS participants had not contributed the required 5% to receive the full matching contribution from the service. This is not so sweet. If there’s one constant in the retirement savings game, it’s that you don’t leave any worth of money on the table.
91.2%
According to the Education Data Initiative, 91.2% of outstanding student loans are federal loans. This is a juicy number because federal student loans offer competitive interest rates, flexibility, and the potential to benefit from existing and new forgiveness programs. To ensure a good outcome, always borrow with your future and future ability to repay debt in mind.
As you can see, this is a mixed bag. There are tricks, and there are also fun. Keep saving.
Stay informed of benefit changes
Want to know about changes to military benefits? Sign up for Military.com to get the latest benefits news delivered straight to your inbox.
story continues
Source link
