In a falling rate environment, a different kind of CD can protect your savings

The Federal Reserve is expected to cut interest rates again later this month. High-yield savings accounts, which are generally offered by internet-only banks or subsidiaries, make you more money. Savings account yields have been decreasing as a result, although as an October MagnifyMoney.com report points out, online savings accounts “haven’t yet fallen as far.” This summer, Goldman Sachs’ Marcus and Ally cut their savings rates for the first time, each by 0.1%. In fact, traders are betting with


The Federal Reserve is expected to cut interest rates again later this month. High-yield savings accounts, which are generally offered by internet-only banks or subsidiaries, make you more money. Savings account yields have been decreasing as a result, although as an October MagnifyMoney.com report points out, online savings accounts “haven’t yet fallen as far.” This summer, Goldman Sachs’ Marcus and Ally cut their savings rates for the first time, each by 0.1%. In fact, traders are betting with
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Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: bob sullivan, alizah salario, sam becker, lisa ferber
Keywords: news, cnbc, companies, rates, months, falling, different, environment, interest, accounts, kind, savers, savings, earn, cut, rate, highyield, protect


In a falling rate environment, a different kind of CD can protect your savings

The Federal Reserve is expected to cut interest rates again later this month. As rates fall, securing a steady return through a low-commitment certification of deposit (CD) is becoming a more appealing option for savers. With a traditional CD, you can’t withdraw money for a predetermined length of time – like six months, 12 months, or even five years – without paying for the privilege. But some banks are offering no-penalty CDs that do away with that caveat. Savers benefit from a fixed interest rate for a set period, and you can withdraw without penalty. “In a falling rate environment, it’s a good option,” Ken Tumin, founder of DepositAccounts.com, told Grow earlier this year.

Falling interest rates can affect your savings

Savings accounts don’t usually provide much interest. The average traditional savings account pays roughly 0.09% annually, according to the FDIC. That’s 9 cents for every $100 after one year. High-yield savings accounts, which are generally offered by internet-only banks or subsidiaries, make you more money. Right now, rates hover around 2% at Ally bank, Barclay’s, and Discover, so savers earn about $2 for every $100 annually. If your emergency fund holds $10,000, you’ll earn about $200 each year in a high-yield account.

The Fed has cut rates twice this year, in July and September, however. Savings account yields have been decreasing as a result, although as an October MagnifyMoney.com report points out, online savings accounts “haven’t yet fallen as far.” This summer, Goldman Sachs’ Marcus and Ally cut their savings rates for the first time, each by 0.1%. After further cuts, as of early October, both offer 1.9% yields. Market observers expect more rate cuts in the next few months. In fact, traders are betting with about 83% probability that central bankers will cut interest rates when they meet later this month. That means, even with a high-yield account, you could earn less interest on your savings. That can make CDs a more attractive option.

CDs help you lock in a rate


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: bob sullivan, alizah salario, sam becker, lisa ferber
Keywords: news, cnbc, companies, rates, months, falling, different, environment, interest, accounts, kind, savers, savings, earn, cut, rate, highyield, protect


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3 ways to help your kids make the most of their allowance

If you want your kids to save part or all of their allowance, make it easy for them. But only 3% of parents report that their kids primarily save their allowance, a figure that the AICPA finds “concerning.” “It’s still parents who have the most influence [on kids’ money habits]. Graphic preview What kids earn The top-paying chores for kids in the U.S. kiersten schmidt/grow Rooster MoneyHere are three ways you can use an allowance to teach your kids about money management and help them to make th


If you want your kids to save part or all of their allowance, make it easy for them. But only 3% of parents report that their kids primarily save their allowance, a figure that the AICPA finds “concerning.” “It’s still parents who have the most influence [on kids’ money habits]. Graphic preview What kids earn The top-paying chores for kids in the U.S. kiersten schmidt/grow Rooster MoneyHere are three ways you can use an allowance to teach your kids about money management and help them to make th
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Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: alizah salario, ivana pino, sam becker, lisa ferber
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3 ways to help your kids make the most of their allowance

If you want your kids to save part or all of their allowance, make it easy for them. Consider getting them a savings jar or even opening them a bank account. Two in three parents give their child an allowance. They dole out an average of $30 per week, according to a recent survey of 1,002 adults conducted by The Harris Poll on behalf of the American Institute of Certified Public Accountants, and in many cases the money is linked to the completion of household chores. But only 3% of parents report that their kids primarily save their allowance, a figure that the AICPA finds “concerning.” Nearly all, or 92%, of parents say it’s important for their child to learn how to manage money, and helping your kids become savers early on is a great way to make that happen. By saving a third of a $30 weekly allowance, your child would be able to sock away over $500 every year. “It’s a missed opportunity, generally, if you’re not taking to your kids about money,” says Paul Golden, managing director at the National Endowment for Financial Education. “It’s still parents who have the most influence [on kids’ money habits]. They’re the front line of defense.”

Graphic preview What kids earn The top-paying chores for kids in the U.S. kiersten schmidt/grow Rooster Money

Here are three ways you can use an allowance to teach your kids about money management and help them to make the most of it over time.

1. Set kids up to be savers

Encouraging your kid to save even part of their allowance can help them establish healthy financial habits. Start by conditioning your kids to automatically save a certain amount each month because “then they don’t miss it,” says Golden. With younger children, Golden suggests using a savings jar so they can see the money building up. Then, once your child starts asking about how banks work, consider opening a savings account. Pay attention to their cues and take advantage of their interest, he says. “Once you’ve started with the habit of saving when you’re young, you start seeing what saving [money] actually does for you,” Clark D. Randall, a certified financial planner and the founder of Financial Enlightenment in Dallas, Texas, told Grow earlier this year. Parents are usually the No. 1 money influence on their kids. In a recent survey of “supersavers,” or people who put an impressive share of their income away for retirement, 80% gave credit to their parents for positively influencing their savings habits.

It’s a missed opportunity, generally, if you’re not taking to your kids about money. Paul Golden Managing director, National Endowment for Financial Education

2. Teach them to budget

Instead of saving, kids, like many adults, put money toward the things they want in the moment. In the AICPA’s survey, parents reported that kids spend most of their allowance money on outings with friends (47%) followed by digital devices and downloads (37%) and toys (33%). Learning to budget, though, will allow your child to think about all what they want to prioritize in the coming week, month, or year. If there’s something expensive your child really wants, you can drive home the connection between spending and earning by explaining how budgeting can help them meet their goals. Let’s say they want a $200 tablet but they end up blowing their allowance each week going out with friends. By setting aside, say, $20 of their $30 allowance, they can count on getting what they want in only 10 weeks. If they want it sooner, they can sock away the full $30 each week. And if they continue to splurge instead of save, don’t get mad. “It’s OK to make mistakes,” says Golden. “That starts to condition us as adults. There’s not some fairy that will come down and get you through till the next paycheck” when you’re an adult, either. So the best time for kids to trip up is when parents are there to guide and counsel them, and help them figure out what to do better going forward.

3. Help them differentiate between wants and needs

By helping them learn to budget for short- and long-term goals at a young age, you’re setting your kids up to tell the difference between wants and needs, explains Golden. Older kids may have to cover bills for the first time. “Once you have teens, they have to start prioritizing things they’ve never done [before], like putting gas in the car or paying for auto insurance,” he says. Condition kids to put money aside by encouraging them to save and budget starting at a young age, and they’ll be prepared to put their needs first. That, in turn, can help them avoid certain pitfalls of overspending, like winding up without money for gas.

Bonus advice: How much to give and how to set an example


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: alizah salario, ivana pino, sam becker, lisa ferber
Keywords: news, cnbc, companies, youre, allowance, golden, save, child, financial, ways, parents, help, money, kids


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With Parmesan, pinot noir and more hit by new tariffs, here’s how to save on wine and cheese

The Trump administration is imposing a 25% tariff on European Union products like Spanish, French, and German wines, and Italian cheeses. In this case, starting on October 18, companies will have to pay more to import wine and cheese from certain European countries. WineThe items selected for this round of tariffs are “very specific and targeted,” says Gary Itkin, general manager and buyer at Bottlerocket Wine & Spirit. So while the price of French champagne won’t rise, because it’s a sparkling


The Trump administration is imposing a 25% tariff on European Union products like Spanish, French, and German wines, and Italian cheeses. In this case, starting on October 18, companies will have to pay more to import wine and cheese from certain European countries. WineThe items selected for this round of tariffs are “very specific and targeted,” says Gary Itkin, general manager and buyer at Bottlerocket Wine & Spirit. So while the price of French champagne won’t rise, because it’s a sparkling
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Company: cnbc, Activity: cnbc, Date: 2019-10-07  Authors: aditi shrikant, sam becker, alizah salario
Keywords: news, cnbc, companies, noir, tariffs, hit, wont, pinot, wines, save, parmesan, riesling, prices, itkin, heres, wine, region, products, cheese, youre


With Parmesan, pinot noir and more hit by new tariffs, here's how to save on wine and cheese

The Trump administration is imposing a 25% tariff on European Union products like Spanish, French, and German wines, and Italian cheeses. Tariffs are taxes placed on imported products. In this case, starting on October 18, companies will have to pay more to import wine and cheese from certain European countries. In response, retailers usually charge higher prices in stores, so individual American shoppers get charged more. If you’re a fan of chardonnay or cheese plates, here’s what you need to know about how tariffs could affect you, and how you can still manage to save money on the products you love.

Wine

The items selected for this round of tariffs are “very specific and targeted,” says Gary Itkin, general manager and buyer at Bottlerocket Wine & Spirit. They include any still wine from France, Spain, or Germany. So while the price of French champagne won’t rise, because it’s a sparkling wine, rosé from the Provence region of France will. The tariff will also be applied to still wine from France’s Bordeaux region, known for malbec and cabernet sauvignon, along with wine from the Burgundy region, which includes pinot noir and chardonnay. Other popular, affected wines are Rioja from Spain or riesling from Germany. Consider stocking up on these bottles now, Itkin says, as prices could rise within the next couple weeks. “On an everyday level, people buy so much rosé and so many lovely white wines like Sancerre,” he says. “Those prices will be going up. … These are wines that typically sell in the $15 to $35 range, so add 25% — that’s a big chunk.”

English cheddar and Stilton are two key items that will see price increases coming down the pike. Steve Millard SVP of Merchandising and Operations at Murray’s Cheese

Because the composition of wine is so dependent on the environment and soil, finding a true substitute is impossible, Itkin says. But, he says, there are some good alternatives that won’t be subject to tariffs. If you’re a fan of German riesling, he suggests trying riesling from the Finger Lakes region in New York, like Dr. Frank’s semi-dry riesling, which retails for $15.99. And instead of a Bordeaux malbec, you can try one from Argentina, like Bodega Norton Reserve, which retails for $19.99 at Total Wine.

Cheese


Company: cnbc, Activity: cnbc, Date: 2019-10-07  Authors: aditi shrikant, sam becker, alizah salario
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More tariffs are on the way: Prepare to pay more for cheese, wine, and whisky

The 25% tariffs, which go into effect October 18, will target a range of goods from countries like France, Germany, Spain, and the U.K, on products including aircrafts, alcoholic beverages, cheese, pork products, and frozen meat. Consumers can also expect higher prices due to another round of tariffs on Chinese goods scheduled to begin October 15. These will push the duties from 25% to 30% on products including furniture, handbags, and luggage. Tariffs are taxes placed on imported products. Comp


The 25% tariffs, which go into effect October 18, will target a range of goods from countries like France, Germany, Spain, and the U.K, on products including aircrafts, alcoholic beverages, cheese, pork products, and frozen meat. Consumers can also expect higher prices due to another round of tariffs on Chinese goods scheduled to begin October 15. These will push the duties from 25% to 30% on products including furniture, handbags, and luggage. Tariffs are taxes placed on imported products. Comp
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Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: sam becker, aditi shrikant, alizah salario
Keywords: news, cnbc, companies, whisky, tariffs, cheese, consumers, way, pay, products, higher, goods, taxes, wine, worth, including, trade, prepare


More tariffs are on the way: Prepare to pay more for cheese, wine, and whisky

Ongoing trade disputes between the United States and other countries are likely to mean that consumers will pay more for all kinds of goods in the final months of 2019, including food, cars, and electronics. Two new rounds of tariffs are slated to go into effect in the coming weeks: The U.S. is set to impose new tariffs on $7.5 billion worth of goods from the European Union, after arbitrators from the World Trade Organization (WTO) approved those levies Wednesday. The 25% tariffs, which go into effect October 18, will target a range of goods from countries like France, Germany, Spain, and the U.K, on products including aircrafts, alcoholic beverages, cheese, pork products, and frozen meat. Consumers can also expect higher prices due to another round of tariffs on Chinese goods scheduled to begin October 15. These will push the duties from 25% to 30% on products including furniture, handbags, and luggage. Tariffs are taxes placed on imported products. Companies importing affected products pay the tariff, and in turn must often charge higher prices for the products to cover the higher importing costs. So individual Americans generally end up paying higher prices.

“At the end of the day, the tariffs are eaten by … the American consuming public,” Richard Ebeling, an economics professor at The Citadel in Charleston, South Carolina, told Grow earlier this year, when the U.S. raised existing tariffs from 10% to 25% on $200 billion worth of Chinese goods. There could be still more tariffs on the way, too. The U.S. is still deciding whether or not to implement import taxes on foreign automobiles, which could add an additional 25% to the price of vehicles produced in Europe and Japan.

How tariffs are affecting consumers


Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: sam becker, aditi shrikant, alizah salario
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How a side hustle walking dogs became a business that brings in six figures

Ryan Stewart has always loved dogs. All the same, he says, he fell into his career walking and training dogs “sort of by accident.” Stewart started his business Ryan for Dogs in Long Island City initially as side hustle. “Instead of ‘dance, dance, dance,’ I came out of the hospital like this: ‘Oh look, trees. “I really, really put everything into it, and it paid off,” he says.


Ryan Stewart has always loved dogs. All the same, he says, he fell into his career walking and training dogs “sort of by accident.” Stewart started his business Ryan for Dogs in Long Island City initially as side hustle. “Instead of ‘dance, dance, dance,’ I came out of the hospital like this: ‘Oh look, trees. “I really, really put everything into it, and it paid off,” he says.
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Company: cnbc, Activity: cnbc, Date: 2019-09-24  Authors: alizah salario, anna-louise jackson, myelle lansat
Keywords: news, cnbc, companies, brings, look, city, business, hustle, dogs, dog, ryan, stewart, walking, figures, really, dance


How a side hustle walking dogs became a business that brings in six figures

Ryan Stewart has always loved dogs. All the same, he says, he fell into his career walking and training dogs “sort of by accident.”

Stewart started his business Ryan for Dogs in Long Island City initially as side hustle. It took a year to become profitable, but now, Stewart says, “I’m able to work part time, let’s say 20, maybe 25 hours a week, and make at least six figures a year.”

Stewart, who came to New York City as a teenager with dreams of becoming a professional dancer, was sidelined when he was diagnosed with cancer before starting college. After he underwent chemotherapy, his focus shifted. “Instead of ‘dance, dance, dance,’ I came out of the hospital like this: ‘Oh look, trees. Oh look, people,'” he says.

Needing to earn some money while he pursued acting gigs but “determined not to wait tables,” Stewart decided to try a side hustle first as a dog trainer and then as a walker. He’d always seemed to understand dogs. To develop his skills further, Stewart read books about dog psychology and worked with other trainers.

He had also recognized a growing need for dog walkers, so it made sense to capitalize on the demand. “I really, really put everything into it, and it paid off,” he says.


Company: cnbc, Activity: cnbc, Date: 2019-09-24  Authors: alizah salario, anna-louise jackson, myelle lansat
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Doing this when buying a home can ‘put your future at risk,’ expert says

Bankrate polled 2,582 adults, including 789 millennials ages 23-38, and asked participants how they are funding their down payments and closing costs. Over half, or 53%, of millennials say they’re saving. And 13% of millennial respondents say they’re tapping their retirement accounts, as compared to 8% and 7% of Gen Xers and baby boomers. Putting ‘your future at risk'”Tapping into retirement savings is a risky move that can put your future at risk,” says Deborah Kearns, a mortgage analyst for Ba


Bankrate polled 2,582 adults, including 789 millennials ages 23-38, and asked participants how they are funding their down payments and closing costs. Over half, or 53%, of millennials say they’re saving. And 13% of millennial respondents say they’re tapping their retirement accounts, as compared to 8% and 7% of Gen Xers and baby boomers. Putting ‘your future at risk'”Tapping into retirement savings is a risky move that can put your future at risk,” says Deborah Kearns, a mortgage analyst for Ba
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Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: alizah salario, bob sullivan, ivana pino, myelle lansat
Keywords: news, cnbc, companies, buying, future, say, long, savings, think, financial, retirement, risk, respondents, money, expert, youre, millennials, doing


Doing this when buying a home can 'put your future at risk,' expert says

To save for a down payment on a new home, some millennials are getting creative, according to a recent survey of prospective homebuyers from Bankrate.com. But one of their strategies in particular, experts worry, may be shortsighted, and even risky. Bankrate polled 2,582 adults, including 789 millennials ages 23-38, and asked participants how they are funding their down payments and closing costs. (Respondents could pick multiple answers.) Over half, or 53%, of millennials say they’re saving. Some are taking more drastic steps: 14% say they’ve moved in with family or friends to cut down on expenses, and 12% are selling personal items such as jewelry, cars, or electronics. And 13% of millennial respondents say they’re tapping their retirement accounts, as compared to 8% and 7% of Gen Xers and baby boomers.

Graphic preview How people find the money to buy homes Millennials tend to use more sources to fund the down payment and closing costs on their first homes than other generations. Social chart title Note: Respondents could choose more than one answer. kiersten schmidt/grow Bankrate

Here’s why experts suggest you think twice before dipping into your retirement fund.

Putting ‘your future at risk’

“Tapping into retirement savings is a risky move that can put your future at risk,” says Deborah Kearns, a mortgage analyst for Bankrate. “By and large, homeownership has long been touted as the way you build wealth,” she says. “While that’s still true to some extent, you can’t overextend yourself to make that happen.” Mark LaSpisa, a certified financial planner and president of Vermillion Financial Advisors in South Barrington, Illinois, agrees. While there may be some cases in which putting equity from retirement savings into a home may make sense, the “psychological, habit-forming” component of drawing down from your retirement savings is a concern, too: “It’s easy to think, ‘I broke the seal, and now I can go in and raid my IRA for any reason,'” he says.

By and large, homeownership has long been touted as the way you build wealth. While that’s still true to some extent, you can’t overextend yourself to make that happen. Deborah Kearns mortgage analyst, Bankrate.com

Generally, when you pull from a retirement account before you reach age 59½, your withdrawal is considered an “early” or “premature” distribution. That means the money is subject to taxes and a 10% penalty. Traditional and Roth IRAs make an exception for first-time homebuyers, letting you avoid those consequences. But even if you’re not incurring additional costs in the short-term, you may well be setting yourself back over the long term. Let’s say you decide to take $10,000 out of your retirement account to put toward a first-home purchase, and you’re 32, the average age of first-time buyers. If you instead left that money in the account and it saw average returns of 8% over the next 33 years until you retire at 65, those funds would have grown to more than $126,700. But growing your retirement savings thanks to compounding interest is only part of why experts recommend leaving that $10,000 alone. If you chip away now at what you’ve already saved, you might find it harder to stay on track later with your retirement goals, should you experience a job loss or other financial emergency that affects your ability to save. For all of these reasons, Suze Orman’s advice is to leave the money in your retirement accounts alone. “Do not take a loan, do not make withdrawals, do not touch your retirement accounts,” Orman told CNBC Make It last year. “Because if you think you need that money now, I’m here to tell you you’re going to need it even more later on in life when you no longer have a paycheck coming in.”

Taking the long view


Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: alizah salario, bob sullivan, ivana pino, myelle lansat
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