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The Education Department said the full launch of the 2025-26 FAFSA is on track for December 1.
Here are a few steps you can take now to prepare.
For many families, financial aid is crucial when it comes to covering the cost of college.

The Free Application for Federal Student Aid for 2025-26 will be available for all students and contributors on or before Dec. 1, the Education Department says.
Typically, students have access to the coming academic year’s form in October, but this year’s delayed release follows a “phased rollout” meant to address reported issues from the 2024-25 FAFSA cycle. Last year’s new, simplified form was plagued with problems at the outset, some of which are still outstanding.

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Although the extended testing period for the 2025-26 FAFSA is important, another delayed start “creates a compressed timeline for students and families to submit their financial information, which can lead to missed opportunities for aid,” Beth Maglione, interim president and CEO of the National Association of Student Financial Aid Administrators, said in a statement.

How to prepare for the 2025-26 FAFSA

“I would encourage families to start gathering their financial documents and information now, so they’re ready to apply as soon as the application becomes available,” Maglione said. “Taking these steps early will help ensure they don’t miss out on vital financial support for college.”
According to Maglione, there are five key moves that students and parents can make now to prepare for their application as soon as it becomes available. Here is her best advice:

Set up a studentaid.gov account: Before the new form opens, students and their parents (if the student is a dependent) can set up a username and password, commonly called the FSA ID, to access and complete the FAFSA electronically. 
Gather personal information: Students should have their Social Security number on hand (as should parents, if the student is a dependent, or student spouses, if applicable). However, if a student spouse, parent or stepparent does not have an SSN, they can still register for an FSA ID. The form may also ask for your driver’s license or state identification number. Non-citizens should have their Alien Registration number handy.
Federal tax information: Applicants will need tax information from the prior-prior tax year. In this case, that means students should have 2023 tax returns for the 2025-26 FAFSA.
Financial records: The FAFSA requires records of the student’s (and the parents’, if applicable) bank accounts, stocks, bonds, real estate (not including the family home) and other investments. Any records of untaxed income, such as child support or government benefits, should be documented as well.
List of schools: Finally, FAFSA applicants should have a list of schools the student is applying to or attending, which will need to be listed on the FAFSA application.

Why the FAFSA is so important

For many students, financial aid is crucial when it comes to covering the cost of college.

Higher education already costs more than most families can afford, and college costs are still rising. Tuition and fees plus room and board for a four-year private college averaged $58,600 in the 2024-25 school year, up from $56,390 a year earlier. At four-year, in-state public colleges, it was $24,920, up from $24,080, the College Board found.

The FAFSA serves as the gateway to all federal aid money, including federal student loans, work-study and especially grants — which have become the most crucial kind of assistance because they typically do not need to be repaid.
Submitting a FAFSA is also one of the best predictors of whether a high school senior will go on to college, according to the National College Attainment Network. Seniors who complete the FAFSA are 84% more likely to enroll in college directly after high school, according to an NCAN study of 2013 data. 

How FAFSA failures have impacted students

After last year’s FAFSA complications, it became clear how much financial aid weighed heavily on decisions about college. 
In part because of issues with the new form, the number of new first-year college students sank 5% this fall compared with last year, according to an analysis of early data by the National Student Clearinghouse Research Center.
The declines in first-year student enrollment were most significant at four-year colleges that serve low-income students, the report also found.
At four-year colleges where large shares of students receive Pell Grants, first-year student enrollment dropped more than 10%.
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Traders work on the New York Stock Exchange floor on November 12, 2024 in New York City.
Source: NYSE

Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
Here’s what CNBC TV’s producers were watching during Tuesday’s modest market decline and what’s on the radar for the next session.

CNBC hosts Delivering Alpha on Wednesday

Key stock pickers include Nelson Peltz, David Einhorn and Jagdeep Singh Bachher, chief investment officer and vice president of investments at the University of California. We’ll also hear from Gerry Cardinale of RedBird Capital, who is appearing with Ben Affleck. Watch CNBC TV in the afternoon.

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Honeywell shares in 2024

The markets

The S&P 500 fell for the first time since last week’s election, snapping a five-day string of gains. It dropped about 0.3%. It is up 3.5% in a week, and the index is up nearly 5% in November.
The Nasdaq Composite also fell for the first time since the election, declining less than 0.1%. It is up nearly 6.6% in November, and it has gained 4.6% in a week.
The Dow Jones Industrial Average lost nearly 1%. It is still up 5% in November, and it’s up 4% in a week.
The Russell 2000 lost almost 2% Tuesday.
Within the Nasdaq 100, 27 of the stocks have an relative strength index reading over 70. This generally means they’ve had a big run and are considered overbought, but that doesn’t mean they’re in for an immediate drop. Zoom Video is at the top of the list with a relative strength index of 87.58. The stock is up 15.5% in November. 

CyberArk Software

The cyber defense stock reports numbers in the morning before the bell.
The stock is up 11% since last reporting three months ago.
CyberArk is 2.55% from the October 18 high.

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CyberArk Software in 2024

Tencent

The stock took a beating Tuesday, down about 5.5%.
The company reports results Wednesday before the bell. It is down 17% in three months.
Tencent is 31% from the May high.

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The Public Service Loan Forgiveness program may be at risk with the reelection of former President Donald Trump.
Here’s what borrowers should know.

10’000 Hours | Digitalvision | Getty Images

Current borrowers should remain entitled to relief

While the program remains in effect, borrowers are entitled to the relief, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

“Don’t panic,” Mayotte said. “PSLF is written into federal law, by a Republican president, and it would take an act of Congress to eliminate it.”
As of now, Republicans have a majority in the Senate. The House is still up for grabs, with several races too close to call.
Yet even if both chambers are under GOP control, it’s not clear “all the Republicans want it gone,” Mayotte said.
More from Personal Finance:28% of credit card users are paying off last year’s holiday debtHoliday shoppers plan to spend more while taking on debt2 in 5 cardholders have maxed out a credit card or come close
But what if they do vote to do away with the program?
“It wouldn’t be retroactive,” Mayotte said.
That means current borrowers would still be able to work toward loan forgiveness under the program.
“So, worst-case scenario, it would be for loans made on or after the date of such a law enactment,” Mayotte said.
Higher education expert Mark Kantrowitz agreed that’s how such a change would probably play out.
“Most likely the change would apply only to new borrowers,” Kantrowitz said. “Existing borrowers would be grandfathered in.”
The Trump campaign did not immediately respond to a request for comment from CNBC.

What borrowers can do

With the PSLF help tool, borrowers can search for a list of qualifying employers and make sure they’re on track for the relief. They should also access the employer certification form at StudentAid.gov.
That form will confirm that you’re working in an eligible job and generate an updated tally of how many qualifying payments you’ve made, Kantrowitz said.
Try to fill out this form at least once a year, he added. And keep records of your confirmed qualifying payments. To get your remaining debt excused, you need 120 qualifying payments. More

Heading into the peak holiday season, some shoppers are still paying off the gifts they purchased in 2023.
Still, Americans, overall, are doing better when it comes to managing their credit card debt compared with previous years.
Recent wage gains and lower inflation “may be driving consumers toward a financial equilibrium,” said TransUnion’s Paul Siegfried.

Americans tend to overspend during the holiday season.
In fact, some borrowers are still paying off debt from last year’s purchases.

To that point, 28% of shoppers who used credit cards have not paid off the presents they bought for their loved ones last year, according to a holiday spending report by NerdWallet. The site polled more than 1,700 adults in September.  
However, this is a slight improvement from 2023, when 31% of credit card users had still not paid off their balances from the year before.
More from Personal Finance:Here are the best ways to save money this holiday season2 in 5 cardholders have maxed out a credit card or come closeHoliday shoppers plan to spend more
Growth in credit card balances has also slowed, according to a separate quarterly credit industry insights report from TransUnion released Tuesday.
Although overall credit card balances were 6.9% higher at the end of the third quarter compared with a year earlier, that’s a significant improvement from the 15% year-over-year jump from Q3 2022 to Q3 2023, TransUnion found.

The average balance per consumer now stands at $6,329, rising only 4.8% year over year — compared with an 11.2% increase the year before and 12.4% the year before that.
“People are getting comfortable with this post-pandemic life,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “As inflation has returned to more normal levels in recent months, it has also meant consumers may be less likely to rely on these credit products to make ends meet.”
Recent wage gains have also played a role, according to Paul Siegfried, TransUnion’s senior vice president and credit card business leader. Lower inflation and higher pay “may be driving consumers toward a financial equilibrium,” he said.

Still, spending between Nov. 1 and Dec. 31 is expected to increase to a record total of between $979.5 billion and $989 billion, according to the National Retail Federation.
Shoppers may spend $1,778 on average, up 8% compared with last year, Deloitte’s holiday retail survey found. Most will lean on plastic: About three-quarters, 74%, of consumers plan to use credit cards to make their purchases, according to NerdWallet.
“Between buying gifts and booking peak-season travel, the holidays are an expensive time of year,” said Sara Rathner, NerdWallet’s credit cards expert. However, this time around, “shoppers are setting strict budgets and taking advantage of seasonal sales.”

How to avoid overspending

“There’s no magic wand, we just have to do the hard stuff,” Candy Valentino, author of “The 9% Edge,” recently told CNBC. Mostly that means setting a budget and tracking expenses.
Valentino recommends reallocating funds from other areas — by canceling unwanted subscriptions or negotiating down utility costs — to help make room for holiday spending.
“A few hundred dollars here and there really adds up,” she said. That “stash of cash is one way to set yourself up so you are not taking on new debt.”

How to save on what you spend

Valentino also advises consumers to start their holiday shopping now to take advantage of early deals and discounts or try pooling funds among family or friends to share the cost of holiday gifts.
Then, curb temptation by staying away from the mall and unsubscribing from emails, opting out of text alerts, turning off push notifications in retail apps and unfollowing brands on social, she said.
“It will lessen your need and desire to spend,” Valentino said.
If you’re starting out the holiday season debt-free, you’re in a “strong position” to take advantage of credit card rewards, Rathner said.
Credit cards that offer rewards such as cash back or sign-on bonuses will offer a better return on your holiday spending, she said.
However, if you are planning on purchasing big-ticket items to work toward such bonuses, make sure you’re able to pay off the balance in full to avoid falling into holiday debt, Rathner said.

What to do if you have debt from last year

People walk by sale signs in the Financial District on the first day back for the New York Stock Exchange (NYSE) since the Christmas holiday on December 26, 2023 in New York City.
Spencer Platt | Getty Images

If you have credit card debt from last year, the first thing you can do is “look for ways to lower the interest you’re paying on that debt,” said NerdWallet’s Rathner. 
A balance transfer card, for example, typically offers a 0% annual percentage rate for a period of time, which usually spans from months to even a year or more.
If you move your debt from a high-rate credit card, it may help you save hundreds or even thousands of dollars in interest payments, depending on how much you owe, Rather said.
“That keeps your debt from growing,” she said. 
But you need to pay off the debt in full before the interest-free period ends to fully benefit, Rathner noted.
Additionally, there are a few caveats: You generally need to have good-to-excellent credit to qualify for the balance transfer and there may be fees involved. A transfer fee is typically 3% to 5% of the balance that you transfer over, Rathner said. 
While you may need to budget for that detail, “the savings on the interest might be higher than the fee you would pay,” she said.
Otherwise, you may be able to consolidate into a lower interest personal loan, depending on your creditworthiness. Similarly, cardholders who keep their utilization rate — or the ratio of debt to total credit — below 30% of their available credit may benefit from a higher credit score, which paves the way to lower-cost loans and better terms.
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ETF Strategist

ETF Street
ETF Strategist

Investors who want income may turn to dividend-paying strategies.
When choosing between funds, it’s important to consider whether the strategy fits your goals and what you will pay, experts say.

Jamie Grill | Tetra Images | Getty Images

For investors who want income, dividends may provide an answer.
Dividends are corporate profits that companies pay to shareholders in the form of either cash or stock.

In comparison to other income-paying investments — such as certificates of deposit, bonds or Treasurys — dividends may provide the opportunity for more appreciation, said Leanna Devinney, vice president and branch leader at Fidelity Investments in Hingham, Massachusetts.
“Dividends can be very attractive because they offer the opportunity for growth and income,” Devinney said.
Dividend investment options may come in the form of single company stocks or dividend-paying funds, like exchange-traded funds or mutual funds.

More from ETF Strategist

Here’s a look at other stories offering insight on ETFs for investors.

With individual stocks, it’s easy to see the dividend a company may offer in exchange for owning its share, Devinney said. Notably, not all companies pay dividends.
However, dividend-paying funds like ETFs or mutual funds may provide a broader exposure to dividend securities, often at lower costs, she said.

For investors who are considering putting a portion of their portfolios in dividend-paying strategies to fulfill their income-seeking goals, there are some things to consider.

What kind of dividend-paying fund fits my goals?

Generally, there are two types of dividend funds from which to choose, according to Daniel Sotiroff, senior analyst for passive strategies research at Morningstar.
The first group focuses on high dividend yield strategies. Dividend yield is how much a company pays in dividends each year compared to its stock price. With high-yield strategies, the investor is trying to get higher income than the market generally provides, Sotiroff said.
High-yield dividend companies tend to have been around for decades, like Coca-Cola Co., for example.
Alternatively, investors may opt for dividend growth strategies that focus on stocks expected to consistently grow their dividends over time. Those companies tend to be somewhat younger, such as Apple or Microsoft, Sotiroff said.

To be clear, both of these strategies have trade-offs.
“The risks and rewards are a little bit different between the two,” Sotiroff said. “They can both be done well; they can both be done poorly.”
If you’re a younger investor and you’re trying to grow your money, a dividend appreciation fund will likely be better suited to you, he said. On the other hand, if you’re near retirement and you’re looking to create income from your investments, a high-yield dividend ETF or mutual fund is probably going to be a better choice.
To be sure, some fund strategies combine both goals of current income and future growth.

How expensive is the dividend strategy?

Another important consideration when deciding among dividend-paying strategies is cost.
One dividend fund that is highly rated by Morningstar, the Vanguard High Dividend Yield ETF, is well diversified, which means investors won’t have a lot of exposure to one company, he said. What’s more, it’s also “really cheap,” with a low expense ratio of six basis points, or 0.06%. The expense ratio is a measure of how much investors pay annually to own a fund.
That Vanguard fund has historically provided a yield of about 1% to 1.5% more than what the broader U.S. market offers, which is “pretty reasonable,” according to Sotiroff.

While investors may not want to add that Vanguard fund to their portfolio, they can use it as a benchmark, he said.
“If you’re taking on higher yield than that Vanguard ETF, that’s a warning sign that you probably have exposure to incrementally more volatility and more risk, Sotiroff said.
Another fund highly rated by Morningstar is the Schwab U.S. Dividend Equity ETF, which has an expense ratio of 0.06% and has also provided 1% to 1.5% more than the market, according to Sotiroff.
Both the Vanguard and Schwab funds track an index, and therefore are passively managed.
Investors may alternatively opt for active funds, where managers are identifying companies’ likelihood to increase or cut their dividends.
“Those funds typically will come with a higher expense ratio,” Devinney said, “but you’re getting professional oversight to those risks.” More

With household budgets already strained, many Americans are concerned about how they’ll manage holiday spending this year.
To that end, experts weigh in on the best ways to save money in the weeks ahead.

As the U.S. presidential election laid bare, economic anxiety is top of mind.
High costs have weighed heavily on household finances, with 2 in 3 Americans concerned about how they’ll manage holiday expenses, when the temptation to splurge is heightened.

This year, holiday spending, between Nov. 1 and Dec. 31, is expected to increase to a record $979.5 billion to $989 billion, according to the National Retail Federation.
More from Personal Finance:Frustration with the status quo ripples through pop culture’I cry a lot but I am so productive, it’s an art’Here’s what ‘recession pop’ is
Even as credit card debt tops $1.14 trillion, holiday shoppers expect to spend, on average, $1,778, up 8% compared with last year, Deloitte’s holiday retail survey found.
Meanwhile, 28% of holiday shoppers still have not paid off the gifts they purchased for their loved ones last year, according to a holiday spending report by NerdWallet. 

How to save money over the holidays

Heading into the peak holiday shopping season, there are a few steps you can take to help maximize your cash.

1. Pay attention to holiday sales
With Black Friday and Cyber Monday falling later on the calendar this year, “it’s a shorter holiday season and that will force the retailer’s hand to be pretty promotional in November,” according to Adam Davis, managing director at Wells Fargo Retail Finance.
Major retailers tend to heavily discount some of their products as the holiday season unfolds. While some sales events earlier in the year are becoming more common, it makes sense for consumers to pay attention to what products are tagged for those events. 

A shopper looks at clothes inside a store at Twelve Oaks Mall on November 24, 2023 in Novi, Michigan. 
Emily Elconin | Getty Images

“Retailers need to stay proactive and nimble to ensure they are not stuck over-inventoried after holiday, and you will see deeper discounts as we get closer to the holiday on items not moving off shelves,” Davis said.
Nearly half, or 47%, of all consumers are waiting for discounts on clothes or accessories, followed by electronics, at 45%, according to Morning Consult.
To snag the best price, shoppers can use online tools to track and search for sales products and items, said Sara Rathner, a credit card expert at NerdWallet. 
2. Consider trading down
Some shoppers are also more willing to alternate higher-cost products for cheaper or less expensive versions, Morning Consult found. 
For instance, shoppers are more likely to trade down from high-end skin and hair care products to less expensive alternatives, said Sofia Baig, an economist at Morning Consult.
“Maybe they’re not shopping for luxury items at Sephora, they’re going to Target instead to get something that is a little bit more in their budget,” she said.
Whether that means trading down to a lower-priced retailer or specific brand, consumers are actively looking for bargains this year, Davis said.
Gen Z and millennial shoppers, in particular, tend to often walk away from name brand products and “dupe” shop instead to save some cash. 
Davis also recommends shopping secondhand to save on big-ticket items.
3. Try ‘slow shopping’
So-called “slow shopping” promotes the importance of taking time to think through each purchase to make more intentional buying decisions, according to consumer savings expert Andrea Woroch.
“Slow shopping encourages consumers to think through each potential purchase rather than jumping on impulse,” Woroch said.
“This allows you to be mindful about what you’re buying, why you’re buying and who you’re buying for while also giving you time to save up, compare prices and look for coupons,” Woroch added.

In many cases, there are good reasons to wait.
Slow shopping allows you to time your purchase based on when it’s on sale for the lowest price, Woroch said.
Identifying and eliminating spending triggers can also help you avoid impulse spending that leads to debt, she said, such as unsubscribing from store emails, turning off push notifications in retail apps and deleting payment information stored online.
4. Dog-ear this date for travel discounts
While some people booked their travel plans for the season, about 45% of travelers have not purchased plane tickets yet because the price was too high, Morning Consult found.
While mid-October may have been the best time to book your holiday travel, you might have one last chance. “Travel Tuesday,” or the Tuesday that follows Black Friday, is a date to pay attention to, according to Hayley Berg, lead economist at travel site Hopper. 
In 2023, Travel Tuesday saw a spike in hotel, cruise and airline bookings by travelers in the U.S., according to McKinsey & Company.
Some experts recommend booking a trip or experience in lieu of presents to keep the holiday expenses in check. “Spending time together is better than any gift you could give,” Woroch said.
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“We’re going to open up tracks of federal land for housing construction,” Trump said during a Aug. 15 news conference. “We desperately need housing for people who can’t afford what’s going on now.”
While building more homes is the simpler answer to address the housing issue in the country, other promises Trump has made could deter affordability efforts, experts say.

Scott Olson | Getty Images News | Getty Images

President-elect Donald Trump wants to address housing affordability in the U.S. by fomenting the construction of new homes.
“We’re going to open up tracks of federal land for housing construction,” Trump said during an Aug. 15 news conference. “We desperately need housing for people who can’t afford what’s going on now.”

As of mid-2023, there has been a housing shortage of 4 million homes in the U.S., according to the National Association of Realtors.
“It’s clear that the prescription for that crisis is more building,” said Jim Tobin, president and CEO of the National Association of Home Builders. 
More from Personal Finance:The typical first-time homebuyer is 38, an all-time highThe Federal Reserve cuts interest rates againTrump has promised no taxes on Social Security benefits
There has been a small increase in new homes being built this year, but it’s still not enough to meet the high demand for housing, leaving a significant gap in the market where there are not enough homes available for buyers, experts say.
Single-family housing starts in the U.S., a measure of new homes that began construction, grew to 1,027,000 in September, according to U.S. Census data. That is a 2.7% jump from August.

While building more homes is the simpler answer to address the housing issue in the country, other promises Trump has made could deter affordability efforts, experts say.
For instance, Trump has talked about enacting a mass deportation of immigrants in the U.S. But doing so might lead to higher building costs, as the construction industry depends on immigrant labor, said Jacob Channel, senior economist at LendingTree.
He also claimed that he would pull down mortgage rates back to pandemic-era lows, although presidents do not control mortgage rates, experts say.
Here’s how some of Trump’s policies could affect the housing market during his administration, according to experts:

1. Deregulation to increase affordability

At the end of Trump’s first presidency, he signed an executive order creating “Eliminating Regulatory Barriers to Affordable Housing: Federal, State, Local and Tribal Opportunities.” 
“That could be a blueprint going forward,” said Dennis Shea, executive director of the Bipartisan Policy Center’s Terwilliger Center.   
During his 2024 campaign, Trump called for slashing regulations and permit requirements, which can add onto housing costs for homebuyers. Experts say that regulatory costs trickle down to the prices homebuyers face.
“We will eliminate regulations that drive up housing costs with the goal of cutting the cost of a new home in half,” Trump said in a speech at the Economic Club of New York on Sept. 5. 
About 24% of the cost of a single-family home and about 41% of the cost of a multifamily home are directly attributable to regulatory costs at the local, state and federal level, Tobin said. 
“If we reduce the regulatory burden on home construction or apartment construction, we’re going to lower costs [for] the consumer,” Tobin said.   

2. Impacts on construction workforce

Trump has also blamed rising home prices on a surge of illegal immigration during the Biden administration. However, experts say that most undocumented immigrants are not homeowners.
Instead, they live in homes owned by U.S. citizens, Channel said. If a mass deportation were to happen, such homes would remain occupied, he added.
Yet, proposals like mass deportations and tighter border control could impact housing affordability, Tobin said.
About a third, or 31%, of construction workers in the U.S. were immigrants, according to the NAHB.
“Anything that threatens to disrupt the flow of immigrant labor will send shock waves to the labor market in home construction,” Tobin said. 
It’s been difficult to recruit native-born workers into the construction industry, experts say.
According to a 2017 NAHB survey, construction trades are an unpopular career choice for young American adults. Only 3% showed interest in the field, the poll found.

Therefore, a mass sweeping of available workers can create a labor shortage in construction. And with fewer workers, wages might increase, which “will likely be passed onto consumers” through higher home prices, Channel said.
What’s more, it will take longer for construction companies to complete housing projects and therefore slow down efforts to increase supply, he added.
While “we are doing a better job” training the domestic workforce through trade schools, apprenticeship programs and other initiatives, the industry still heavily relies on immigrant labor, Tobin said.

3. Tariffs could hike building costs

Trump has proposed a 10% to 20% tariff on all imports across the board, as well as a rate between 60% and 100% for goods from China.
A blanket tariff at 10% to 20% on raw building materials like lumber could push housing costs higher, as well as materials for home renovations, experts say. 
“Any tariffs that raise the cost of the products are going to flow directly to the consumer,” Tobin said.
On average, construction costs for single-family homes is around $392,241, according to a data analysis by ResiClub, a housing and real estate data newsletter.
“It depends on what the tariffs look like,” said Daryl Fairweather, chief economist at Redfin. “There could be varying impacts.”

Overall, homebuilders expect to construct about 1.2 million new single-family homes and around 300,000 multifamily units over the next year, Tobin said.
“We’re not quite building back up to the pace that we need to, but it’ll be higher,” he said. “It’ll be higher than this year.”
It might be too soon to tell if the Trump administration will prioritize housing costs as much as a Harris administration would have. And the aid Trump has mentioned might not help densely populated areas, said Fairweather.
Trump mentioned plans to release federal lands for housing, but federal lands tend to concentrate in rural areas, she said.
“That doesn’t do anything for these densely populated blue cities that really need the most help,” Fairweather said.

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About 59% of adults ages 18 to 29 in Puerto Rico are financially fragile, compared to 47% of those 30 to 54 and 41% of those 55 or older on the island, the report titled “An Overview of Factors Tied to the Financial Capability of Adults in Puerto Rico” found.
“It highlights things that people feel and experience, but that are hard to find numbers for,” said Harold Toro, Research Director and Churchill G. Carey, Jr. Chair in Economic Development Research at the Center for a New Economy.

Parade attendees wave Puerto Rican flags on Fifth Avenue in Manhattan during the annual Puerto Rico Day Parade. 
Luiz C. Ribeiro | New York Daily News | Tribune News Service | Getty Images

Young adults in Puerto Rico are on shaky financial ground, a study finds.
About 47% of respondents in the U.S. territory are financially fragile, meaning they lack confidence in their ability to absorb a $2,000 economic shock, according to a September report from the Financial Industry Regulatory Authority Investor Education Foundation.

“This is the first time a study of this nature has been done on Puerto Rico,” said report co-author Harold Toro. He is also the research director and chair in economic development research at the Center for a New Economy, an economy-focused think tank based on the island.
“It highlights things that people feel and experience, but that are hard to find numbers for,” Toro said.

More than half, or 59%, of adults ages 18 to 29 on the island are financially fragile, compared to 47% of those ages 30 to 54 and 41% of those age 55 or older, FINRA found. The organization in 2021 polled 1,001 adults who live in Puerto Rico.
“The financial fragility and capability more broadly in Puerto Rico … it’s pretty dire when we compare it to the mainland United States,” said report co-author Olivia Valdés, senior researcher at the FINRA Investor Education Foundation.
Financial fragility, particularly for young adults, is much higher in Puerto Rico than on the mainland U.S. More than half, or 59%, of 18 to 29-year-olds are financially struggling in Puerto Rico compared to 38% of the same age group in the U.S., according to FINRA data.

About 30% of U.S. residents overall were considered financially fragile in 2021, according to FINRA’s latest Financial Capability in the United States report, which polled 27,118 U.S. adults in 2021. The Puerto Rico survey was separate, but fielded at the same time.

The younger generation has experienced financial strain for over two decades.

Vicente Feliciano
founder and president of Advantage Business Consulting, a market analysis and business consulting firm in San Juan, Puerto Rico

Many young adults leave Puerto Rico to try and improve their financial situation, by seeking education or employment in the United States or in other countries. For the young adults who stay, the generation must contend with an economy under recovery, an electric grid hanging on by a thread and sky-high costs for basic needs like housing.
Understanding why young Puerto Ricans are financially fragile could help with efforts to retain younger residents and bring working professionals back to the island, experts say.
But “living in Puerto Rico can’t just be a matter of survival, it also has to be a place where you can thrive,” said Fernando Tormos Aponte, an assistant professor of sociology at the University of Pittsburgh.

Young Puerto Ricans are ‘having a tougher time’

To be sure, a certain degree of financial strain is typical for people just starting out. Generally speaking, financial standing gets better with age.
But financial fragility is more prominent among young adults in Puerto Rico compared to the U.S.
“People who are younger seem to be … having a tougher time,” Toro said.
Adults age 18 to 29 in Puerto Rico are less likely than adults ages 30 and over to report having emergency and retirement savings, FINRA found.

Less than a quarter, 22%, of 18- to 34-year-olds in Puerto Rico have any type of retirement account. Among that age group on the mainland U.S., 43% do, according to the broader FINRA analysis.

Young adults in Puerto Rico are also more likely than older residents to have student loan and medical debt.

Younger generations only know a Puerto Rico in crisis

Puerto Rico’s economy “is doing quite well,” said Vicente Feliciano, founder and president of Advantage Business Consulting, a market analysis and business consulting firm in San Juan, Puerto Rico.
The job market has improved, and salaries are growing at a faster pace than inflation, thanks to the increase in minimum wage, Feliciano said. While the federal minimum wage in the U.S. is $7.25, it’s $10.50 in Puerto Rico.

Employment in the private sector was at a 15-year high since mid- 2022, according to the Federal Reserve Bank of New York.
Still, the median household income on the island was just $25,621 in 2023, less than a third of the $80,610 median household income in the mainland U.S., per Census data.
Even though the last couple of years have been better, for adults under 40 in Puerto Rico, “most of their working lives have been overshadowed by the depression that Puerto Rico fell through from 2006 through 2015,” Feliciano said.
“The younger generation has experienced financial strain for over two decades,” he said. “They have seen many of their friends leave the country. They are frustrated. They blame the traditional [political] parties for something that may or may not be their fault, but is very real.”

‘We want people to come back’

Alejandro Talavera Correa moved to Washington, D.C. in 2019 for a job in finance. The role and pay were too good to pass up, he said: “People have to leave in order to get a competitive salary.”
But within a few years, he found himself moving back to Puerto Rico.
Talavera Correa, now 28, found an opportunity to return to Puerto Rico through El Comeback, an online job board that is tailored to include job postings that meet market salary standards or offer benefit packages for prospective applicants.

“We want people to come back,” said Ana Laura Miranda, project manager of El Comeback. “We need to be realistic. We need to invest in employees and if we don’t have the salaries, then we need to create benefit packages.”
According to Miranda, the audience that mostly uses the platform are in their late 20s to those in their mid to late 30s. They vary from single adults to families with kids.
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The initiative is still in its early stages, and has attracted and retained 51 candidates, Miranda said.
Candidates are often looking to be close to family or regain the sense of belonging or warmth that comes with being in Puerto Rico, said Miranda. But young workers returning to Puerto Rico may face new financial challenges.
“There’s always going to be a certain pay cut,” as six figure salaries are not as common on the island as they are in the U.S. And “Puerto Rico is not cheap,” said Miranda. “The cost of living … it’s real. We cannot miss that.”
The island — like the mainland U.S. — has a housing market that’s unaffordable for many residents, and having a car is essential to get around because public transportation services can be unreliable.

Talavera Correa was fortunate to buy a condo during the pandemic when mortgage rates were low.
“If you don’t have that kind of money, you’re essentially stuck either renting or living with your parents,” said Talavera Correa.
Yet, like most Puerto Ricans on the island, he still struggles with regular blackouts and electricity problems. Those send him to his mom’s house, where service is more reliable due to her solar panels.
“Blackouts and problems with electricity are quite recurrent,” said Advantage Business Consulting’s Feliciano. “Electricity is a major distinction between the U.S. and Puerto Rico and it hits the younger generation harder than it hits the wealthier, older generation.” 

Despite the challenges, Talavera Correa is happy with his decision.
“It’s essentially the quality of life that you can have here in Puerto Rico. You have the beaches, everything outdoors, and the opportunity that you can have to have a happy life,” he said.
“But if that comes with economic restraints, or just overall living situations regarding the electricity, water … that disappoints a lot of people [who] come back.” More