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Roughly 3 in 5 unmarried millennial and Gen Z couples live together, according to a new report.
Half those couples don’t split the mortgage or rent equally, and 37% feel like their relationship is financially unequal.
“You’re not going to have an answer that’s going to be the same for each couple about what is fair,” said a social psychologist.

Zamrznutitonovi | Istock | Getty Images

Many Gen Z and millennial couples are moving in together before tying the knot to save money, but that doesn’t often mean a 50-50 split when it comes to expenses.
Roughly 3 in 5 unmarried couples in the U.S. live with their partners, according to a report by the Thriving Center of Psychology, which surveyed 906 unmarried Gen Z and millennial pairs in June.

Millennial couples are more likely to live together, with 65%, versus 37% of Gen Z couples.
More than half of couples, 54%, said finances were part of their decision to move in together. But that doesn’t mean they are splitting expenses right down the middle. Half of couples don’t split the mortgage or rent equally, and 39% do not split pet costs equally, the survey found.
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What is possibly more concerning is 37% feel like their relationship is financially unequal.
Experts say the survey results underscore that when it comes to sharing expenses, equal isn’t always equitable, or fair. However, the definition of fairness is likely to vary by couple.

“You’re not going to have an answer that’s going to be the same for each couple about what is fair,” said social psychologist Michael Kraus, an associate professor of organizational behavior at Yale University.

‘Seriously consider’ splitting bills by income

“I advise young couples to seriously consider splitting the household bills according to income and then revisiting it every year as incomes change,” said certified financial planner Cathy Curtis, founder and CEO of Curtis Financial Planning in Oakland, California.
For example, if your salary represents one-third of your household income, you might be responsible for a third of the rent. Couples should list all the household expenses, including fixed costs and an average for the variable costs, then split those costs according to income and deposit their allotted amounts monthly in a joint account, said Curtis.

This method can allow both people to have money left over after key expenses for goals such as retirement, especially the person with the lower income, she added.
“When I bring it up, I see relief in the face of the person making less money,” said Curtis, who is also a member of the CNBC Financial Advisor Council. “I think it’s totally fair [and] I think it makes for greater equity, less resentment and also creates more communication around money,” she said. 

‘It’s almost not fair to split finances 50-50’

People come into partnerships from different financial situations, and that affects how they divide household expenses, said certified financial planner Sophia Bera Daigle, who is also the founder of virtual firm Gen Y Planning in Austin, Texas.For example, one partner may be saddled with student loan or credit card debt while the other partner is not. The latter may have the financial strength to carry rental or mortgage expenses so the other person can focus on paying down their liabilities, said Daigle.
“I think it’s almost not fair to split finances 50-50 without taking into account your partner’s financial situation,” said Daigle, who is also a member of the CNBC Financial Advisor Council. “It’s really important to get a better financial picture of what’s going on with your significant other.”

Equity is ‘about what roles you play’

Society and culture has shifted toward a place of more equality, allowing more women to make more money than they did 50 years ago, said psychotherapist Dr. Carli Blau, founder of Boutique Psychotherapy in New York. 
But a division still exists around financial responsibility and maintenance that depends on the role both partners play in the relationship, she said.

Part of becoming a couple is developing a way to live together that’s neither yours nor theirs; it’s what you create together.

Dr. Carli Blau
founder of Boutique Psychotherapy

“It’s no longer about financial equality; it’s really about what roles you play in your partnership and do both people feel heard, seen, appreciated, supported and validated as a partnership,” said Blau.
It’s important for couples to have open and honest conversations about what their finances will look like once they move in together, because “part of becoming a couple is developing a way to live together that’s neither yours nor theirs; it’s what you create together,” she said.

Your solution won’t ‘be a one-size-fits-all’

Fairness is going to be rooted in each party’s perception of what is “fair,” and those perceptions are often distorted and inconsistent with each other, said Kraus.
Couples that communicate and discuss how to manage the finances together and are transparent about their contributions are going to create the “splitting scheme” that they both consider fair, he said.
For instance, it might not be fair for one couple to split the mortgage or rent evenly because that would be “90% of my check and 40% of yours,” said Kraus. “That might seem unfair to one couple but totally fair to another.”

“It’s not going to be a one-size-fits-all for each couple but it’s really going to be based on this kind of communication,” he added.
Couples risk dissatisfaction over perceived unfairness if they skip discussing their financial situations, cautioned Kraus. 
“If you’re really serious about somebody and they’re serious about you, being able to work through a discussion about fairness is something that you can definitely do.” More

If you suffer loss due to a natural disaster, file an insurance claim quickly.
The Federal Emergency Management Agency may also provide government assistance.
If you haven’t been directly impacted, now can be a good time to review your financial plans in the event of a disaster.

Hawaiians are still reeling from the deadliest U.S. fire in over a century. The extent of the losses in life and property in Maui are still unknown.
Early estimates from the Pacific Disaster Center and the Federal Emergency Management Agency report that more than 2,200 structures have been damaged or destroyed, 86% of which were residential. The cost to rebuild could be around $5.5 billion. 

The economic loss of the Maui fires could total as much as $10 billion, according to AccuWeather.
As residents start to pick up the pieces, many of them may be wondering what crucial steps they need to take to recover financially. 
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“You have to go back to Hurricane Iniki in 1992 to find a natural disaster that hit Hawaii that caused anything close to this in terms of insured losses,” said Michael Barry, chief communications officer for the Insurance Information Institute. “This is epic.” 
After ensuring loved ones are safe, many victims of these wildfires may not be sure where to turn to start to rebuild their financial lives.

Here are two actions experts say consumers ought to take after a natural disaster: 

Contact your insurer and file a claim: First, reach out to your homeowners or renters insurance company to start the claim process. Also, contact your auto insurer and, if you own a small business, your business property insurance company. Take photos of the damage to submit along with your claims.

File a FEMA claim: Contact FEMA on its app or online at DisasterAssistance.gov to apply for federal assistance, as well. The faster you can file a claim, the better, to help expedite obtaining and getting coverage for temporary housing, experts say. Also, make sure to keep all hotel and meal receipts.

The 3 steps to natural disaster preparation

A Mercy Worldwide volunteer makes damage assessment of charred apartment complex in the aftermath of a wildfire in Lahaina, western Maui, Hawaii on Aug.12, 2023.
Yuki Iwamura | AFP | Getty Images

If you’re concerned that you live in an area that is prone to wildfires — or you just want to be extra-cautious and protect yourself financially against a natural disaster — insurance experts say it’s also important to take these steps:

Review insurance coverage annually: Standard homeowners’ insurance policies generally cover fire and smoke damage, Barry said, but it’s always a good idea to double-check exactly what your policy says. Take a look at your policy once a year to make sure you have enough coverage. Also, be aware of your deductible and make sure you have adequate savings to cover that amount. Do the same with renters, auto, boat, and business property insurance policies too.

Make a home inventory: Having an accurate inventory of all of the items in your home makes it easier to document and be fairly reimbursed for any losses. Log your possessions by walking through and taking videos of all items with your camera phone. Some experts recommend a thought experiment: pretending you could turn your house upside down and then writing down a list of everything that could possibly fall out, in order to have an accurate list of the contents.

Keep key documents offsite: Finally, keep your home inventory and other important documents, such as your insurance policies, in a fireproof box or off-site.

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With college affordability now the No. 1 concern among students and their families, a new ranking determines which schools are giving out the most financial aid to offset the cost.
Washington University in St. Louis claimed the top spot.
At some of these private colleges, the average scholarship award is more than $50,000, according to The Princeton Review, which can bring the total out-of-pocket cost closer to $20,000.

As a new college application season gets underway, the price tag for higher education is in the spotlight.
Now, above all else, students and families are concerned about the rising cost and the student debt that often goes along with it — without considering the schools with the most generous aid packages.

To that end, The Princeton Review ranked colleges by how much financial aid is awarded and how satisfied students are with their packages. The Princeton Review’s Best Colleges for 2024 report is based on data collected from 165,000 student surveys.
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Tuition and fees at a four-year private college averaged $39,400 in the 2022-23 academic year. At four-year, out-of-state public colleges, it was $28,240, according to the College Board, which tracks trends in college pricing and student aid. When adding in other expenses, the total tab can be more than $70,000 a year for undergraduates at some private colleges, and in some cases, even for out-of-state students attending four-year public schools.
However, about two-thirds of all full-time students receive aid, which can bring the cost significantly down. Your net price is a college’s tuition and fees minus grants, scholarships and education tax benefits, according to the College Board.

There are some schools that simply are more able to meet a student’s and family’s demonstrated financial need.

Robert Franek
editor-in-chief of The Princeton Review

“Crossing a school off the list of consideration based on sticker price alone is a mistake,” said Robert Franek, editor-in-chief of The Princeton Review.

‘There’s an enormous amount of grant aid’

When it comes to offering aid, private schools typically have more money to spend, Franek said. “Lots of private schools have great financial wherewithal and those resources get channeled into financial aid.”
The top schools for financial aid are all private and considered among the nation’s most expensive institutions, after accounting for tuition, fees and room and board. Yet, their very generous aid packages make them surprisingly affordable.
“There’s an enormous amount of grant aid — $74 billion — that’s a ton,” Franek said. As a result, “there are some schools that simply are more able to meet a student’s and family’s demonstrated financial need and that is something for prospective students and families to know about.”
In fact, the average need-based scholarship awarded to undergraduates on this year’s top 10 list was $45,447.

Top 10 colleges for financial aid

1. Washington University in St. Louis

Washington University in St. Louis.
Christopher A. Jones | Getty Images

Location: St. LouisSticker price: $83,760Average need-based scholarship: $58,197Total out-of-pocket cost: $25,563
2. Thomas Aquinas College
Location: Santa Paula, CaliforniaSticker price: $39,400Average need-based scholarship: $15,283Total out-of-pocket cost: $24,117
3. Skidmore College
Location: Saratoga Springs, New YorkSticker price: $78,880Average need-based scholarship: $50,000Total out-of-pocket cost: $28,880
4. College of the Atlantic
Location: Bar Harbor, MaineSticker price: $56,280Average need-based scholarship: $37,229Total out-of-pocket cost: $19,051
5. Wabash College
Location: Crawfordsville, IndianaSticker price: $62,425Average need-based scholarship: $37,419Total out-of-pocket cost: $25,006
6. Emory University
Location: AtlantaSticker price: $71,770Average need-based scholarship: $51,808Total out-of-pocket cost: $19,962
7. St. Olaf College
Location: Northfield, MinnesotaSticker price: $69,070Average need-based scholarship: $44,362Total out-of-pocket cost: $24,708
8. Reed College
Location: Portland, OregonSticker price: $78,010Average need-based scholarship: $45,237Total out-of-pocket cost: $37,773
9. Williams College
Location: Williamstown, MassachusettsSticker price: $77,300Average need-based scholarship: $66,083Total out-of-pocket cost: $11,217
10. Gettysburg College
Location: Gettysburg, PennsylvaniaSticker price: $76,690Average need-based scholarship: $48,852Total out-of-pocket cost: $27,838
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On Aug. 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law.
Eighty-eight years later, the program has never missed a payment.
Here’s how Social Security has changed, and what experts are watching for next.

President Franklin D. Roosevelt signs the Social Security Act into law on Aug. 14, 1935.
FPG | Archive Photos | Getty Images

Social Security has reached a milestone — its 88th birthday.
On Aug. 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law. With that law, a social insurance program to pay workers ages 65 and up into retirement was created.

“We can never insure 100% of the population against 100% of the hazards and vicissitudes of life,” Roosevelt said when the Social Security Act was signed, “but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age.”
Benefits have evolved in the years since the legislation was first signed — including the addition of disability benefits in 1956 under President Dwight Eisenhower.
Payments have also changed.

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The earliest benefits, paid from 1937 to 1940, were single lump-sum payments for those who would pay into the program but not be vested long enough to receive monthly checks. The average lump sum payment was $58.06.
Monthly benefit payments began in 1940 for retired workers, as well as their wives and widows, children under 18 and surviving parents.

The first monthly retirement check was paid on Jan. 31, 1940, to retired legal secretary Ida May Fuller. The check was for $22.54.
Much has changed since the program was established more than eight decades ago. Here are three important takeaways when it comes to your benefits.

1. Social Security has never missed a payment

Since Social Security benefit payments were established, the program has never missed a payment.
“Eighty-eight years of a program that has done exactly what it set out to do, and in fact much more, in terms of covering people for disability and survivorship and never missing a payment, is a remarkable achievement,” said Dan Adcock, director of government relations and policy at the National Committee to Preserve Social Security and Medicare.
That’s even as the size of the program has grown substantially. In 1940, Social Security had 222,000 beneficiaries. In 2023, an average of 67 million Americans will receive a Social Security benefit every month.
For retired workers, the average monthly benefit is $1,837, according to the Social Security Administration, while the average for disabled workers is $1,486.

2.  Future benefits may change

When Fitch recently downgraded the U.S. long-term rating to AA+ from AAA, it cited an “erosion of governance” among the reasons for the change.
“There has been only limited progress in tackling medium-term challenges related to rising Social Security and Medicare costs due to an aging population,” Fitch’s report said.
Social Security faces insolvency dates for the trust funds it currently uses to pay benefits. That includes as soon as a decade away — 2033 — for the fund used to pay retirement benefits. When combined with the disability benefit fund, the insolvency date is 2034.

If nothing is done before 2033, that will lead to a 23% across-the-board benefit cut, according to a new analysis from the Committee for a Responsible Federal Budget. For the typical dual-earning couple who retires in 2033, that would mean a $17,400 cut in annual benefits.
To fix Social Security’s funding woes, it will generally take benefit cuts, tax increases or a combination of both.
Democrats have proposed several plans to make benefits more generous, while increasing payroll taxes on high earners. Meanwhile, some Republicans have suggested forming commissions to evaluate the future of the program.
Advocates such as the National Committee to Preserve Social Security and Medicare want to see benefits expanded, rather than cut.
Social Security does not contribute to the deficit, noted Adcock.
“If we weren’t forgoing so much revenue in terms of our tax policy, then the fiscal situation we’re in wouldn’t be so concerning as it is,” Adcock said.

3. Benefits will likely still be there for you

Social Security’s funding woes have prompted fears that the program may run out of money and stop making payments — a top reason for claiming retirement benefits early, according to a recent survey by asset management company Schroders.
Yet experts say it is best to keep those fears in check when making Social Security retirement benefit claiming decisions.
“Every time we have approached a shortfall in the past, there has been some compromise to be able to continue benefits,” said Joe Elsasser, a certified financial planner and founder and president of Covisum, a Social Security claiming software company.

For lower- and middle-income retirees, a huge benefit cut “most likely isn’t in the cards,” Elsasser said.
But high-income earners may be more vulnerable to having their benefits reduced, he said. For those beneficiaries, it makes sense to stress test their plans to see whether their plan still works for them, even with possible benefit cuts.
Nevertheless, for most beneficiaries, the advantage of waiting to claim benefits, and therefore getting the biggest monthly checks available to them, still makes sense, Elsasser said.
“We should not expect cuts, we shouldn’t make our primary plans based on cuts,” Elsasser said. “But we should make a contingency plan in case cuts do materialize.” More

The Biden administration released new guidance on how colleges can proceed in the wake of the Supreme Court’s decision ending race-based admissions policies.
Two new resources outline which policies and practices for promoting a diverse student body remain legal.

The Biden administration released new guidance Monday on how colleges can “lawfully achieve a diverse student body” in the wake of the Supreme Court’s ruling striking down affirmative action.
In a “Dear Colleague” letter and a questions and answers page, the U.S. Department of Education outlined what policies and practices for promoting a diverse student body remain legal after the Supreme Court decided that the consideration of race in college admissions violates the Equal Protection Clause of the U.S. Constitution and the Civil Rights Act of 1964.

“The resources issued by the Biden-Harris Administration today will provide college leaders with much-needed clarity on how they can lawfully promote and support diversity, and expand access to educational opportunity for all,” U.S. Secretary of Education Miguel Cardona said in a statement. “This is only the first step.”
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The high court’s ruling was considered a massive blow to decades-old efforts to boost enrollment of minorities at American universities through policies that accounted for applicants’ race.
Experts predicted the Supreme Court’s ruling would encourage colleges to put more weight on students’ household income and their regional background to diversify their student bodies.
Schools may also rely less on standardized test scores or even eliminate SAT and ACT requirements, which have reinforced race gaps, other studies show.

Colleges can still consider personal essays about “how race affected his or her life, be it through discrimination, inspiration or otherwise,” Chief Justice John Roberts wrote in the ruling, even though “universities may not simply establish through application essays or other means the regime we hold unlawful today.”
The Education Department said it will release a report next month with additional details on how colleges can use other measures of adversity, including financial means, where a student grew up and went to high school, as well as personal experiences of hardship, including racial discrimination, in their admissions decisions.
Colleges are likely to add questions along these lines to their admissions applications, according to higher education expert Mark Kantrowitz, and more may also end the policy of giving preferential treatment to legacy students, which is increasingly under fire after the ruling on affirmative action.
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People can easily fall into “false financial comparisons,” a scenario in which we believe we can afford the same lifestyles people we perceive as “just like us” have, said bestselling author Manisha Thakor.
Here’s what can make people can lose sight of reality and overstretch themselves financially to meet unrealistic expectations.

Franckreporter | E+ | Getty Images

People can easily fall into “false financial comparisons,” a scenario in which we believe we can afford the same lifestyles people we perceive as “just like us” have, said author Manisha Thakor in her new book, “MoneyZen: The Secret to Finding Your ‘Enough.'”
A certified financial planner, Thakor noticed this phenomenon during the three decades she spent helping people make better decisions around money in her wealth management practice.

“People would come to me and they would be driving the nicest cars [and dressed] in the newest fashions with incredible jewelry and shoes,” she told CNBC. “And I would discover that they didn’t have enough in assets to meet the minimum [to be a client].
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“They looked like millionaires, but they were far from it.”
Thakor came to the conclusion that false financial comparisons can lead anyone to spend beyond their means. Here are three common factors:
1. Fictional financial lifestyles
Characters portrayed in TV shows and movies tend to have expensive wardrobes, apartments and lifestyles, no matter their fictional job.

“When I looked at the homes they are portrayed living in, the cars they drive and the ways they socialize, and I [did] the math assuming they’re earning average incomes for those positions in those cities, the numbers don’t add up,” said Thakor. 

The cast of “Friends:” (l-r) Jennifer Aniston, as Rachel Green; Matt LeBlanc, as Joey Tribbiani; David Schwimmer, as Dr. Ross Geller; Lisa Kudrow, as Phoebe Buffay-Hannigan; Matthew Perry, as Chandler Bing; and Courteney Cox, as Monica Geller-Bing.
NBCU Photo Bank

For instance, when the renowned sitcom “Friends” was on TV, Thakor was in her early 20s, living in New York as an investment banker. She lived in a fourth-floor walk-up and paid $800 a month for a 400-square-foot studio. If she tried to live in an apartment similar to the one shown on “Friends,” she estimates, she would have probably spent more than half her take-home income.
Thakor’s major concern is people may expect to achieve those characters’ lifestyles if they have similar job positions and have one of two outcomes when that doesn’t happen: They either feel bad about themselves for not having that life or stretch themselves financially to access it. 
2. Easy access to credit
Readily available lines of credit may encourage consumers to live up to standards that are not economically feasible, said Thakor.
Instead of once-common in-store layaway plans, where the shopper could make monthly payments until they paid the item off and could bring it home, shoppers can now walk out the door with the product financed on debt, often ultimately paying 50% to 80% more than the original price on minimum monthly payments and interest rates, said Thakor.

“Layaway plans are almost nonexistent these days,” she said. “They’ve been replaced by credit cards.”
“It’s a longer-term trend versus the post-pandemic credit card figures that are due to very real struggle right now,” Thakor added.
Credit card balances are up almost 20% from a year ago, according to a quarterly credit industry insights report from TransUnion. The average balance per consumer rose to $5,947, the highest in a decade. 
3. Social media
“Social media puts everything on steroids,” said Thakor. “It is an airbrushed, curated version of our lives.”
People who consume social media are often exposed to content that shows images of people they may know, or from influencers, that make them feel, quite often, inadequate. 

Nearly 40% of young adults said they spend more of their money on experiences than necessities such as paying bills, according to a 2022 report by Credit Karma.
However, Thakor is hopeful because she has noticed an increased desire for genuine connections from platform users, and one can’t have a true connection if it’s based on falsehoods.

‘We’re all vulnerable to overspending’

“It really helps to just acknowledge that we’re all vulnerable to overspending to maintain our status, [which] is deeply ingrained into our psyche,” said psychologist Bradley T. Klontz, a certified financial planner and the managing principal of YMW Advisors in Boulder, Colorado.
While it is good to always aspire for better, here are three ways for you to stay true to your financial means as you work your way up to your goals:
1. Acknowledge that we all care deeply
The first step is to realize that everyone cares deeply about their status in social circles, “even if we pretend not to,” said Klontz, who is also a member of the CNBC Financial Advisor Council.
2. Remember that social media can be misleading
“The bottom line is we are inundated with misinformation around how people become wealthy and how wealthy people spend their money,” he said.

Juan Algar | Moment | Getty Images

Most wealthy people describe themselves as frugal and are tremendous savers, whereas people who show lavish lifestyles on social media oftentimes have a lower net worth.
Therefore, be aware of who you are comparing yourself to online. “You see what they just bought, but what you’re not seeing is their actual net worth,” he added.
3. Reconsider your reference group
“We are always going to be vulnerable to this,” said Klontz. Therefore, he suggests to consciously choose your reference group, or who you compare yourself with. Make sure that reference group reflects your true goals.
There is a concept in psychology called relative deprivation, meaning there is no objective number at which “we’ve made it or are wealthy or well off,” said Klontz. “It is entirely based on what group of people we are comparing ourselves to.”
“Our entire sense of social status relates to the people we are trying to belong to,” said Klontz. “What tribe are you trying to belong to?” More

Gen Z — 87% — and millennials — 83% — are far more willing to pay extra for travel protections compared to other generations, according to a report by Bank of America.
“I think a lot of it goes to the lifestyle of the different generations and where they are traveling,” said Mary Hines Droesch, the head of consumer and small business products at Bank of America. 

Rome ranked second on a recent list of best travel destinations for a digital detox.
Piola666 | E+ | Getty Images

Despite inflation, Gen Z and millennials are determined to travel this summer, even if it means spending a bit more.
While almost two-thirds, or 73%, of people are willing to pay extra fees for travel insurance or refundable booking options for their trips, Gen Zers and millennials are far more willing — at 87% and 83%, respectively — to pay extra for travel protections compared with other generations, according to a report by Bank of America. The bank surveyed 2,003 consumers in June.”I think a lot of it goes to the lifestyle of the different generations and where they are traveling,” said Mary Hines Droesch, head of consumer and small business products at Bank of America. 

While Bank of America posed the question differently in a prior, similar report, the latest findings seem to represent an increase. When the bank surveyed 2,020 consumers about their savings and spending attitudes and behaviors in March 2022, 54% of those who planned to travel said they would purchase trip protection, including 73% of Gen Z and 65% of millennial travelers.
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Since younger generations may face tighter restrictions, from available free time to finances, they avoid risk where and when they can to ensure their travel plans go smoothly.

Why younger travelers spend more insuring trips

Many baby boomers are retired and enjoy a degree of flexibility when it comes to travel. For instance, they are the most likely cohort to travel on nonpeak days (60%) or to drive instead of fly (54%) to their destination, according to the Bank of America report. That’s less true for Gen Z, said Droesch.
“When [Gen Z] plan a trip, they’re really limited to the time that they’ve taken off from work, and especially now that there’s such a push for people to return to the office,” she said.

By opting to buy travel insurance, younger people’s plans are more protected, added Droesch. Boomers “have other options [in case] things go awry, because they don’t have the constraints of having to be at the office, at the very least, three days a week,” she said.
Roughly 20%, or 1 in 5, of customers on Hopper who generally tend to be Gen Z and millennial users, are adding the travel app’s flight disruption guarantee product as a way to protect their trips, said Hayley Berg, an economist at Hopper.
“It’s hugely popular with travelers, especially those who are worried about all the disruptions that are in the news right now,” said Berg.

Pandemic leaves travel jitters in wake

Many travel plans were canceled during the Covid-19 pandemic and many disappointed buyers got no refunds, even if they had travel insurance because unforeseen events such as the Covid-19 lockdown weren’t covered. The experience left a “lasting impression on younger generations,” said Droesch. 
With other countries now reopen for tourism due to relaxed or completely eliminated Covid restrictions, younger U.S. travelers don’t want to miss out on new experiences. However, given those lockdown memories and their limited disposable income, they’re also insuring trips so that if something unexpected happens, they can travel at a later date, said Droesch.
The travel sector is also still experiencing higher service disruption rates compared with pre-pandemic times, according to Berg at Hopper. 

“Travelers are a lot more worried about being disrupted than they probably were four years ago,” she said. Additionally, given a stubborn — albeit falling — inflation rate, “a lot of families are tightening their belt,” Berg added.
These two generations are no longer simply “young ones,” so to speak, said Berg. Millennials are entering their 40s, and much of Gen Z have graduated college and are starting their careers. 
“They’re building economic power and have entered adulthood,” she added. “I do think the trends that we see in this demographic are the trends I expect to see for the next 10 to 20 years.”
To that point, increased interest in travel protection products is not a fleeting phenomenon. Users who applied travel protection products on Hopper are two to four times more likely to purchase the product for future trips, adding up about 10% or $40 more per booking, said Berg. 
“It comes at a cost, but we’re seeing the willingness, and the repetitive purchases are really there,” she added.While travel insurance sounds like a good idea, travelers should be aware of the different types of travel insurance that exist and be sure of which type they buy. For instance, you can cancel a flight for any reason and get a full refund through Cancel for Any Reason, or CFAR, plans. However, such coverage can add up to 50% or more on top of actual costs.

Traveling for less can mean risking less

Insurance or no insurance, opting to travel when others are staying home can mean risking less hard-earned money. Traveling during a destination’s “shoulder seasons,” or the transition period between times most popular with travelers — such as spring and fall, which bookend the summer high season, in Europe — is favorable because that’s when the best deals are usually available, said Berg. 
“January, September and October are the cheapest months of the year to travel pretty much anywhere in the world and to stay in hotels because it’s back to school, [and] most of Europe has gone back to work after their summer holidays in August,” she said.Considering off-peak days for travel and hotel stays can help “chip away the cost of the trip.” More

Michael Wirth, CEO of Chevron.
Adam Jeffery | CNBC

When times get rocky for the stock market, dividends can offer investors a measure of stability in the form of portfolio income.
Here are five attractive dividend stocks, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.

Chevron

Energy giant Chevron’s (CVX) earnings declined in the second quarter of 2023, as energy prices have cooled down compared to last year when the Russia-Ukraine conflict sent oil and gas prices soaring.
Nonetheless, Goldman Sachs analyst Neil Mehta recently upgraded Chevron to buy from hold, citing leading capital returns and inflection in free cash flow next year. He raised his price target for CVX stock to $187 from $166.
Mehta stated that Chevron lagged its key rivals over the past two to three years due to issues related to upstream execution and lower refining exposure compared to Exxon. However, the analyst said that some of the upstream execution risks have been addressed, with major projects in Tengiz at 98% completion and Permian volumes growing better than anticipated in Q2 2023.
Regarding capital returns, Mehta noted that Chevron has grown its dividends for more than 25 years. The stock has a yield of 3.3%. Moreover, earlier this year, the company increased its annual share repurchase guidance range to $10 billion to $20 billion from $5 billion to $15 billion.
“We highlight that from 2024-2026, we expect a sharp improvement in ROCE [return on capital employed], production per share growth and FCF per share, all enabling a top decile return of capital profile in the S&P 100,” said the analyst.

Mehta ranks 262nd among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, with each rating delivering an average return of 12.3%. (See Chevron Stock Chart on TipRanks)  

ConocoPhillips

Mehta is also bullish on another dividend-paying energy stock – ConocoPhillips (COP). While the company’s second-quarter earnings and cash flow fell slightly short of the analyst’s expectations, he sees the possibility of a more constructive setup in the second half of 2023 as pricing realizations normalize and volumes increase.
Mehta added that though ConocoPhillips is in a higher spending mode to support longer-term and high-return projects, he continues to expect attractive capital returns in 2024 and beyond. The analyst projects a capital return yield of 7% in 2024, with room for further upside.
The analyst’s 2024 capital return projection is based on $5 billion of share buybacks and the expectation of a higher dividend payout of $4.3 billion compared to the prior estimate of $3.7 billion. ConocoPhillips has a capital return target of $11 billion for 2023, and it has returned about $5.8 billion to shareholders in the first half of the year through share repurchases and fixed and variable dividends.
Mehta reiterated a buy rating on COP and raised the price target to $128 from $120, saying, “We see COP as the most advantaged on return on capital employed, with a 2024-2026 avg ROCE of 21% vs the US Major peer avg of 16%.” (See ConocoPhillips’ Financial Statements on TipRanks) 

Pioneer Natural Resources

Next on this week’s list is Pioneer Natural (PXD), an independent oil and gas exploration and production company. Recently, PXD modified its capital return framework to pay at least 75% of free cash flow to shareholders through base and variable dividends and opportunistic share repurchases. The remaining 25% will be used to strengthen the balance sheet.
Mizuho analyst Nitin Kumar noted that in the second quarter — marking the inaugural quarter for the updated capital return framework — post-base dividend free cash flow was evenly divided between buybacks (about $125 million) and variable dividends ($138 million). He also mentioned that Pioneer recently announced its third-quarter dividend payment and pointed out that its forward dividend yield is over 3.0%, based on $1.25 per share of base dividend and $0.59 per share of variable dividend.  
Kumar, who has a buy rating on PXD with a price target of $265, highlighted that PXD’s second-quarter volumes and above-guidance production validated his prediction of an improvement in well productivity, as indicated by his firm’s proprietary database.    
“Critically, this well productivity is allowing management to increase oil/total production guidance by ~1%/3% while reducing capex by ~3%, setting the stage for strong capital efficiencies into 2024 without factoring in the impact of cost deflation anticipated by the industry,” said Kumar.
Kumar holds the 26th position among more than 8,500 analysts on TipRanks. Moreover, 79% of his ratings have been profitable, with each generating a return of 23.2%. (See PXD Insider Trading Activity on TipRanks)

Seagate Technology

Seagate (STX), one of the prominent makers of computer hard drives, is under pressure because of the uneven pace of recovery in China and cautious enterprise spending due to macro headwinds.
Nevertheless, Baird analyst Tristan Gerra, who ranks 398th among more than 8,500 analysts tracked on TipRanks, remains bullish on this dividend-paying tech stock. Seagate generated free cash flow of $626 million in fiscal 2023 and paid $582 million in dividends while directing $408 million toward repurchasing shares. STX offers a dividend yield of 4.2%.
The analyst noted that the June quarter’s shipments fell significantly due to the ongoing inventory correction among most of the company’s customers, with this trend expected to last a couple of additional quarters. However, the analyst contended that hard disk drive (HDD) secular demand trends remain intact.  
Gerra thinks that the worst is behind the company. He expects STX’s gross margin to improve due to the company’s aggressive cost reduction and ramp-up of higher-density architecture.
The analyst reiterated a buy rating on STX stock with a price target of $70. He said, “Net, business remains structurally sound, and we see no reason for Seagate not to return and eventually exceed a historical $5-$5.50 EPS run rate.”
Gerra has a success rate of 56% and each of his ratings has returned 10.3% on average. (See Seagate Hedge Fund Trading Activity on TipRanks)          

McDonald’s

Last on this week’s list, there’s fast-food chain McDonald’s (MCD), which impressed investors with strong second-quarter results. The company is a dividend aristocrat and has raised its dividend payment for 46 consecutive years. MCD has a dividend yield of 2.1%. 
Following the impressive Q2 2023 print, RBC Capital analyst Christopher Carril reiterated a buy rating on MCD and increased the price target to $340 from $325.
The analyst highlighted that the company delivered another solid quarter against elevated estimates, driven by still-elevated average check and positive guest counts, which were supported by its robust marketing efforts. 
“McDonald’s stable and improved business model, global scale and near best-in class dividend yield all help to balance relatively lower unit growth, in our view justifying a multiple above that of all franchised peers,” said Carril.
Carril ranks No. 661 out of more than 8,500 analysts tracked on TipRanks. Also, 64% percent of his ratings have been profitable, with an average return of 12.3%. (See McDonald’s Blogger Opinions & Sentiment on TipRanks)   More