Investing

Young people are more likely to give up returns on investments to invest in ways that support causes they care about, new data shows.
The behavior can be connected to a need among young people to signal their values, one behavioral scientist said.
The data comes as the environmental, social and governance framework finds itself in hot water politically.

Prasit photo | Moment | Getty Images

When Hannah Cohen invests in a stock or fund, one thing she looks for is if the mission aligns with her personal values.
For example, the 25-year-old data consultant has invested in funds like the ALPS Clean Energy ETF and the Global X Autonomous & Electric Vehicles ETF as someone who cares about climate change. In the same vein, big-oil stocks are largely out of the question.

“It sends a message that people are interested and that people do care,” Cohen said. “I don’t know how much of a difference I as an individual am making, but I do think it’s important to at least play a part and show that I’m invested physically, but also emotionally, in these causes.”

What young investors want

Recent survey data indicates that Cohen isn’t alone. Nearly two-thirds of Gen Z investors want to allocate their portfolios in a way that supports causes they care about, according to a July survey of some 4,000 current and aspiring investors by U.S. Bank.
That’s compared with 59% of millennials, 45% of Gen X and 30% of boomers.
And active young investors are willing to give up returns to see that goal through. The survey found more than four-fifths of Gen Z and millennials would be willing to underperform the S&P 500’s 10-year average return of 12% to ensure that the companies where they’ve invested align with their belief systems. Only 73% of Gen X and 65% of boomers said the same. 

Nearly a fifth of the Gen Z investors said they would accept returns between 9% and 11.8%, rather than the full 12% average return. Nearly 30% would take between 6% and 8.9%, while another 30% would accept returns between 3% and 5.9%.

Matthew Ivler, a 23-year-old machine learning engineer, began his investing journey in March 2020 soon after the pandemic sparked a market crash. Initially, he allocated his portfolio mostly toward single stocks and was more focused on receiving consistent dividends versus growth. Now, his portfolio mostly consists of exchange-traded funds — which has also changed how he aligns his investment strategies with his values.
“With [ETFs], I’m just like, ‘Yeah this is going to track the market.’ But in the end, I’m ultimately investing in all these companies, and some probably do things I disagree with,” Ivler said. “But on a single stock, I pick [one] I think has a fundamental importance.”  
He cited Home Depot as one of his original holdings that he later sold after controversy around the company’s donations to federal lawmakers who objected to the results of the 2020 presidential election. Chevron was also part of his portfolio when he first began investing, but he later reduced exposure to it in favor of alternative energy companies as he became more climate-conscious. 
His portfolio now includes names such as Edison International, which is engaged in renewable energy solutions, as well as the Invesco Water Resources ETF, which focuses on utility companies that help conserve and purify water. Ivler’s year-to-date return on his investments is approximately 9.5%, while the S&P 500 has gained nearly 15% in the same period.

Sending a ‘signal’

U.S. Bank’s survey builds on earlier data pointing in a similar direction. Younger and wealthier investors were more likely to support environmental, social and corporate governance — or ESG — issues and put returns on the line for those values, according to a survey from the Stanford Graduate School of Business, the Rock Center for Corporate Governance and the Hoover Institution released late last year.
The data comes as accountability measures and standards for ESG investing are hotly debated. President Joe Biden used his first veto in March to save a U.S. Department of Labor rule around investing in ESG funds that many Republicans wanted killed. Lawmakers in Washington have continued to spar over ESG reporting mandates for companies.

One broad behavior-based phenomenon for the relationship between age and ESG may be that young adults inherently seek out ways to express their identity, according to Julie O’Brien, the head of behavioral science at U.S. Bank. 
Investing can provide another way for young adults to say, “This is the kind of person that I am, and now I get to act in a way that’s in-line with my identity,'” O’Brien said. “What we see with ESG investing is that it creates something that you can signal to other people.”
O’Brien also said that younger generations may feel more connected to ESG given the increased amount of information available and the ubiquity of social media.

‘Needs to be done’

To be sure, attitudes toward socially conscious investing vary when looking at different identifying factors within age groups. Of active investors, U.S. Bank found Hispanic and Black investors were significantly more likely to feel motivated to use investing as a vehicle for supporting causes they care about.
Dylan Assi said being a self-described visible minority makes ESG issues harder to ignore when personally investing. The 22-year-old, who is a passive investor that first became exposed to ESG in college, said it can be clear if a company is putting “money where their mouth is.”
“There’s an obvious problem that we have on the environmental side, but also on the social side,” said Assi, who works in real estate private equity and investing. “Fundamentally, doing the right thing is something that needs to be done.”
Assi said he’s found a misconception among fellow young investors that they must underperform the broader market in order to appease personal values. Rather than looking for companies that appear “perfect” on all fronts, he said to look at those supporting ESG trends more broadly. He pointed to Apple and Microsoft’s work on sustainability in the cloud as an example.
Cohen, whose portfolio is up about 35% this year, agreed that investors don’t necessarily need to forfeit profit to make socially conscious decisions. But she said it can be challenging to find trustworthy research on how companies rank in the ESG space without access to expensive screening software. It’s even more difficult when looking for companies doing work in the social or corporate governance realms, she added.
Assi said he usually looks at publicly available ESG reports, but recognizes the potential for bias given that they are typically written by the companies themselves. On the other hand, Ivler said he doesn’t actively seek out a company’s ESG reports, but will look at the general news for insights into a company’s actions.
Despite roadblocks, O’Brien believes having an ESG-focus when investing is ultimately beneficial for young investors in achieving their financial goals. It makes investing more concrete and tangible, she said, which is especially important as young people grapple with uncertainty and an abstract future. 
“We tend to forget that investing is not just money and math,” she said. “It’s psychology and things that are inherently baked into our humanity that we need to navigate around.” More

Most workers — 89% — want flexibility when it comes to their work schedules.
Companies are striving to get workers back in the office, but that doesn’t have to end flexibility completely, experts say.

Morsa Images | Digitalvision | Getty Images

Most workers are hoping that flexible Covid-era work policies will stay in place.
A new survey from Bankrate found 89% of full-time workers, or those looking for full-time work, are in favor of remote and hybrid work or four-day work weeks.

More than half of workers — 51% — said they would be willing to switch jobs or industries to get their desired schedule.
The results of the survey, which was fielded in July, come as a remote work reckoning may be brewing.
More from Personal Finance:81% of full-time workers want a 4-day work weekHow much people really tip post pandemicWhy Americans are struggling with car loans
Meta plans to require its workers to return to the office three days per week starting in September. Meanwhile, Goldman Sachs is pushing for a full return to a five-day-a-week in-office schedule.
Just over 8% of job postings on Indeed offer some form of remote work, down from a high of more than 10% last year, according to Nick Bunker, director of North American economic research at the job listings website.

Most sectors are more likely to advertise remote work than they were before the pandemic, Bunker said.
But the sectors most likely to be open to remote work then are more likely to advertise those kinds of positions now, he said. That includes roles in software development, marketing, information technology and data science.

For workers who want to keep their flexible schedules, the good news is that a job or industry switch may not be necessary in order to get the schedules they want, according to Vicki Salemi, a career expert at Monster.
“Employers don’t want to lose top talent,” Salemi said. “It costs them money and time to replace you.”
Whether you’re a job seeker or an existing employee, the key is to know how to ask.
“Think about it like a salary negotiation,” Salemi said. “Do your homework first.”

Look for leverage in your current job

Set up a time to speak with your boss and do your research ahead of time, particularly with regard to your company’s work-from-home policy and where there may be exceptions, Salemi said.
If you’ve already been working from home, think of examples when you worked remotely, absolutely aced your work and received excellent feedback, Salemi suggested.
Also think of concrete reasons why working remotely will be beneficial both to you and your boss, she said. That may include higher productivity and time and money saved from commuting.
If you have not had a meaningful salary increase amid high inflation, you may have a more compelling argument for saving money by not traveling to the office, she said.
Additionally, be prepared to offer a trial run so you and your employer can test the arrangement.
“It’s a matter of knowing exactly what you’re looking for … and to prove yourself and show an established pattern where you have worked well working remotely,” Salemi said.
If your boss is not open to offering flexibility, you may update your resume and start looking for other positions elsewhere, she said.

Be upfront about what you want when job hunting

When looking for remote or flexible positions, experts say it’s best to be upfront about what you want.
In an executive summary at the top of your resume, highlight your skills and experience and state up front whether you are looking for a 100% remote position or hybrid work, Salemi suggested.
Treat remote and flexible work as a negotiation, much like you would salary, she advised.

“When you’re talking to employers, know what you’re willing to walk away from,” Salemi said.
At the start of the position, you may negotiate how many days you are in the office to start, with a plan to revisit that arrangement after several months. Importantly, that arrangement should be documented in writing, Salemi said.
“You really want to be on the same page from day one,” Salemi said. More

The average annual percentage rates for both new and used cars rose in the second quarter of the year, according to Edmunds.
Used car shoppers end up paying more on interest rates in the long run, explained Joseph Yoon, a consumer insights analyst for the car website.

I Love Images | Cultura | Getty Images

Rising interest rates are pushing auto loan rates upwards for both new and used cars across the U.S. 
The average annual percentage rate for new cars rose 7.1%, in the second quarter of the year, according to car website Edmunds, while that for used cars ticked up 11%.

Thus, shoppers opting for preowned vehicles end up paying more on car payments in the long run.

“If you’re financing a used car at 11% for six-seven years, after a couple years that car is not worth anything, so people are just paying for money,” said Joseph Yoon, a consumer insights analyst at Edmunds. “[This is] the big issue at the moment.”

States with highest interest rates for used cars

The average APR a person gets relates to their credit score, according to Tom McParland, a contributing writer for automotive website Jalopnik. “If you have good credit, you get lower interest rates,” he said. “If you have poor credit, you’re going to get higher interest rates.” 
Interest rates on used cars currently are the highest in Alabama, Georgia, Louisiana, Mississippi, Nevada, New Mexico, Ohio, South Carolina and West Virginia.These also happen to be states where there’s a greater population of people financially struggling, said McParland, who is an operator of vehicle-buying service Automatch Consulting. Indeed, all but Ohio and New Mexico figured among the bottom 10 on a recent list of states with the best and worst average credit scores from WalletHub.
More from Personal Finance:Massachusetts health-care workers get student loan forgivenessHere’s why property taxes vary so much from city to cityWhy you shouldn’t borrow for your wedding

“You’re going to have a higher likelihood of those people that don’t have strong credit scores,” he said. 
The longevity risk associated with used cars is yet another factor driving up interest rates for car shoppers, Yoon said.
People forced into buying cars that are older than they expected could run into more problems in the next five to seven years, he added.

“Even if you buy the most reliable vehicle in the world, once it reaches 100,000 miles, it’s going to cost you … in preventative maintenance,” Yoon said. “Things break or wear out.” Car repair costs are also rising, adding to maintenance woes for drivers of used vehicles. Common car repairs can run consumers $500 to $600 a visit and are sometimes “much higher,” according to AAA.
“I think a lot of these car buyers that were forced into unfavorable situations are going to find themselves in worse situations in a couple years,” Yoon said.

What to do if you had to buy a used car

Make sure you pay off the loan on a used car as soon as possible, advised Yoon. By shortening the length of the loan, owners save money on interest.
Also, don’t skimp on preventive maintenance for your car; make sure you take the vehicle for its recommended routine inspections and don’t skip out on oil changes.

“I can guarantee that it’s always cheaper to fix it before it breaks,” Yoon said.
Finally, listen to your mechanic if they notice something; if you are wary about their recommendations, you can gut-check by asking for a second opinion from a different shop.
“You bought this car believing it will last you … at least the length of your loan term payment, so you want to keep it on the road as long as possible,” Yoon said. “The best way to do that is to be proactive with the maintenance — not reactive.” More

Savers are now getting higher cash yields but could owe more taxes than expected, experts warn.
Interest from high-yield savings accounts and certificates of deposit creates “ordinary income” every year, subject to federal and state income taxes.
Taxable money market funds and Treasury bills also trigger ordinary income. But Treasury bill earnings won’t trigger state or local taxes.

Artistgndphotography | E+ | Getty Images

Savers are now getting higher cash yields after several interest rate hikes from the Federal Reserve. But taxes on those earnings could be a surprise, experts say.
As of Aug. 24, the top 1% of savings accounts were paying average rates north of 4.5%, and the most competitive one-year certificates of deposit offered more than 5.5%, according to DepositAccounts.

Meanwhile, Treasury bills, which have terms ranging from one month to one year, had yields well above 5% as of Aug. 24, and the biggest money market funds were also paying more than 5%, Crane Data reported.
“Everyone thinks it’s kind of a free lunch,” said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. “But you’ve got to consider the tax man.”
More from Personal Finance:Credit card spending growth is slowing after reaching record highsEven millionaires are feeling financially insecure, report findsHere’s why property taxes vary so much from city to city
Interest from high-yield savings accounts and CDs creates “ordinary income” every year, subject to federal and state income taxes. Falling into the regular tax brackets, ordinary income is less favorable than long-term capital gains.
Similarly, taxable money market funds — which typically invest in shorter-term lower-credit-risk debt — and Treasury bills also trigger ordinary income. But Treasury bill earnings aren’t subject to state or local taxes.

For example, let’s say you’re earning 4% annual interest on $100,000 in a CD. If you’re in the 22% federal income tax bracket, you may have an extra $880 in federal tax liability.
Plus, “it may affect other tax planning opportunities,” said Lucas, such as Roth individual retirement account conversions or the chance to harvest investment gains at the 0% capital gains rate.
However, some higher earners are opting for municipal money market accounts, which invest in state-issued debt and offer federal tax-exempt interest. Of course, investors need to compare after-tax yields for regular money market funds to see which option is best.

Every financial decision has a ‘tax impact’

When buying assets that create income, it’s important to consider your complete financial picture, said CFP John Loyd, an enrolled agent and owner at The Wealth Planner in Fort Worth, Texas. 
“Pretty much every financial decision is going to have a tax impact, whether it’s immediate or down the road,” he said.

If you’re buying income-producing assets outside of a retirement account or in a brokerage account, you can expect yearly income. But you won’t have the same problem for products held within tax-free or tax-deferred accounts, Loyd said.
“I’ve been doing a lot of CDs for clients, and we’ve been doing the vast majority of those inside retirement accounts if we can,” he said. More

Negative headlines about the future of Social Security may influence the retirement benefit decisions people make.
If you’re planning to claim, here’s what experts say you should focus on instead.

AleksandarNakic | E+ | Getty Images

The subject of Social Security was largely left untouched in the first Republican presidential debate.
But worries about the future of the program loom large in Americans’ minds, a recent survey from the Nationwide Retirement Institute shows.

To that point, 75% of individuals age 50 and up worry Social Security will run out of funding in their lifetimes, according to the survey of 1,806 individuals taken between May and June.
That is up from 66% of adults who said the same in 2014.
Those concerns have increased as the depletion dates for the program’s funds come closer. The program’s combined funds are due to run out in 2034, at which point 80% of benefits will be payable, Social Security’s trustees have said.
More from Personal Finance:Many borrowers may have a different student loan servicerHere’s how to save on school supplies, deal hunters sayIf you found gold coins, the tax man wants a piece
Meanwhile, the fund the program relies on to pay retirement benefits is projected to last until 2033 — just a decade away — with 77% of benefits payable at that time.

“You’ve got people on this stage that won’t even talk about Social Security and Medicare,” former Vice President Mike Pence said during Wednesday’s Republican primary debate.
In a February interview with CNBC, Pence said it was necessary to “get everybody at the table” to discuss the future of the programs.
“There’s lots of good ideas to solve this that are common sense that don’t impact people at the point of the need, that don’t affect anybody that is going to retire in the next 25 years,” Pence said, pointing to legislation passed 50 years ago that raised the retirement age and ushered in long-time solvency.
While the other candidates didn’t take Pence’s bait to debate the future of the programs Wednesday, they have addressed them in separate interviews.

Florida Gov. Ron DeSantis told Fox News in July that he would “protect people’s Social Security,” though he is open to reform.
“Talking about making changes for people in their 30s or 40s so that the program’s viable, you know, that’s a much different thing, and that’s something that I think that there’s going to need to be discussions on,” he said.
Uncertainty about the future of Social Security comes as more Americans rely on the program for their sole source of income, with 21% doing so according to Nationwide’s latest retirement survey, versus 13% in 2014.
Meanwhile, just 31% said they currently have income from pensions, versus 48% who said the same 10 years ago.
While the fate of Social Security remains uncertain, experts say there are a couple of things people can do to position themselves for the most benefits available to them.
“This is one of the largest decisions you’ll make in your life” and one people are least informed about when going into it, said Tina Ambrozy, senior vice president of strategic customer solutions at Nationwide.

1. Base claiming strategy on your personal situation

Uncertainty around the future of Social Security is the No. 1 reason many retirees are claiming before age 70 — the maximum age it pays to wait to before getting benefits — and full retirement age, when they stand to receive 100% of the benefits they earned, a Schroders survey recently found. Find out your full retirement age by using this calculator.
But experts say it’s still best to base your retirement claiming strategy on your personal situation, rather than fears about the program’s outlook.

Even if lawmakers fail to enact changes to Social Security before the depletion dates, the average retiree will still receive about 77 cents on the dollar, Joe Elsasser, a certified financial planner and founder and president of Covisum, a Social Security claiming software company, recently told CNBC.com.
Targeting the claiming strategy that will get you the most benefits will put you in a strong position, even if there are changes down the road.
Waiting to claim is not the best strategy for everyone, and the decision shouldn’t be based exclusively on age, Ambrozy said.

2. Get educated on the ins and outs of the rules

Social Security comes with many complex rules, and almost half of adults — 49% — said they know how to maximize their benefits, Nationwide’s survey found.
Yet just 13% of adults can correctly guess their full retirement age, which is when they are eligible for 100% of the benefits they earned.
Notably, almost half of respondents — 49% — erroneously believe their benefits will go up at full retirement age even if they claim early.
“Once you elect to start receiving benefits, it locks in,” Ambrozy said. “You’re not just going to just step up based on age.”
To avoid costly mistakes, experts say it’s best to study up on the program’s rules, including information provided by the Social Security Administration.

We just are big believers that you should ask for help and don’t wait until it’s too late.

Tina Ambrozy
senior vice president of strategic customer solutions at Nationwide

To gauge how much money you may be eligible for in retirement, it helps to set up an online Social Security account, where you can also make sure your earnings history and other crucial information is correct.
But prospective beneficiaries should avoid asking workers in their Social Security office for advice, Ambrozy said, as they may not be experts in claiming strategies.
Instead, consulting a financial advisor who is well versed in Social Security can help you identify the most optimal claiming strategy for your personal situation.
“We just are big believers that you should ask for help and don’t wait until it’s too late,” Ambrozy said. “Don’t wait until you’ve already filed and you’re starting to collect and then suddenly you realize you’ve made an incorrect choice.” More

CNBC reached out to contenders for the GOP presidential nomination to get their views on student loan forgiveness.
The topic is likely to be a major point of tension in the general election, with President Joe Biden continuing to look for a way to deliver on his promise of sweeping forgiveness.

Republican presidential candidates (L-R): former Arkansas Gov. Asa Hutchinson, former New Jersey Gov. Chris Christie, former U.S. Vice President Mike Pence, Florida Gov. Ron DeSantis, Vivek Ramaswamy, former U.N. Ambassador Nikki Haley, U.S. Sen. Tim Scott (R-SC) and North Dakota Gov. Doug Burgum are introduced during the first debate of the GOP primary season hosted by FOX News at the Fiserv Forum on Aug. 23, 2023 in Milwaukee.
Scott Olson | Getty Images

One year ago today, President Joe Biden announced his plan to cancel up to $20,000 in student debt for tens of millions of Americans.
That proposal was hugely popular with borrowers, who saw it as a chance to alleviate at least of some of the debt they’ve complained is holding them back from moving ahead in life.

However, many Republicans— including the lineup of politicians seeking the 2024 GOP presidential nomination — didn’t like the policy.
More from Personal Finance:Don’t borrow money for your weddingHere’s how much people really tip post-pandemicHere are 3 things to know about retirement benefits
In June, the Supreme Court struck down Biden’s plan, but the president is now attempting to cancel the debt a different way.
The nation’s student loan balance, which exceeds $1.7 trillion, is a bigger burden to Americans than credit card or auto debt. Voters support forgiving at least some student loan debt by a 2-to-1 margin, according to a Politico/Morning Consult poll. Less than a third oppose the policy.
On Wednesday night, during the first Republican presidential primary debate, the topic of student loan forgiveness didn’t come up, even as several of the candidates called for the elimination of the U.S. Department of Education.

But CNBC tracked down statements on the policy from the GOP contenders.

Donald Trump

Former President Donald Trump, who didn’t attend the debate Wednesday night, has a long record of opposing student loan forgiveness. Trump also sided with the Supreme Court.
“Today, the Supreme Court also ruled that President Biden cannot wipe out hundreds of billions, perhaps trillions of dollars, in student loan debt, which would have been very unfair to the millions and millions of people who paid their debt through hard work and diligence; very unfair,” Trump said at a campaign event in June.

Ron DeSantis

The Florida governor has said that it’s wrong to saddle taxpayers with the expense of student loan forgiveness.
“Why should a truck driver have to pay for somebody that got a degree in zombie studies?” DeSantis said at an Iowa event in early August. “It doesn’t make sense.”

Vivek Ramaswamy

In a written statement to CNBC, the tech entrepreneur said we had a bad habit in America “of paying people to do the exact opposite of what we want them to do: More [dollars] to stay at home than to work, more [dollars] to be a single mother than married, more [dollars] for those who fail to repay loans than those who do.”
Ramaswamy also said that the Supreme Court’s ruling to block forgiveness “helps reverse that trend.”

Mike Pence

The former vice president also celebrated the Supreme Court’s ruling, while taking some credit for it.
“I am pleased that the court struck down the Radical Left’s effort to use the money of taxpayers who played by the rules and repaid their debts in order to cancel the debt of bankers and lawyers in New York, San Francisco and Washington, D.C.,” Pence said in a June statement.
He also said that he was “honored to have played a role in appointing three of the justices that ensured” the “welcomed decision.”

Nikki Haley

The former South Carolina governor and U.S. ambassador to the United Nations under Trump has tweeted that “a president cannot just wave his hand and eliminate loans for students he favors, while leaving out all those who worked hard to pay back their loans or made other career choices.”
“The Supreme Court was right to throw out Joe Biden’s power grab,” Haley wrote.

Tim Scott

Sen. Tim Scott of South Carolina in June called Biden’s forgiveness policy “illegal and unconstitutional,” and said it “forces hardworking Americans to shoulder debt they never signed up for.”

Chris Christie

The former New Jersey governor has said that Biden doesn’t have the authority to cancel student debt without prior authorization from Congress.
“He knows he’s done something that is illegal and over the top,” Christie said on ABC’s “This Week” last summer.
Christie also said the president’s policy, “does nothing to control college costs. The reason people have higher loans is because college is more expensive. This does not make college less expensive. It makes it more expensive, when you’re giving away things.”

Doug Burgum

The North Dakota governor was deeply critical of Biden’s forgiveness plan.
“This horribly misguided and incredibly unfair plan undermines a core American principle that individuals are responsible for paying off their own personal debts,” Burgum said in a statement in September 2022. “This federal action will not affect student loans held by the Bank of North Dakota, and we would strongly oppose any copycat legislation at the state level.”

Asa Hutchinson

A former governor of Arkansas, Asa Hutchinson, called Biden’s broad forgiveness plan “a misuse of executive authority,” in a statement last year.
“Shifting the burden from those who willingly took out a loan to all taxpayers is inconsistent with the American ideal of personal responsibility,” Hutchinson said. More

Increased longevity is challenging people to rethink the traditional three-stage life path that moves from education to career to retirement.
But with new pressures on health and wealth, not all generations are feeling fully prepared, new research finds.

Increased longevity is challenging people to rethink the traditional three-step life path of education, work and retirement.
But one age group — individuals ages 40 to 59 — is more likely to struggle with this concept, according to new research from Transamerica and the Massachusetts Institute of Technology AgeLab.

“That cohort based on the study really had the toughest time and was carrying the most stress and burden about managing this concept of longevity in a positive way,” said Phil Eckman, president of workplace solutions at Transamerica.
That comes as that age group — traditionally categorized as Gen X, as well as younger baby boomers — is likely most stressed about all things in life, from parenting and saving for their children’s education to caring for their own aging parents, Eckman said.
More from Personal Finance:Many borrowers may have a different student loan servicerHere’s how to save on supplies, deal hunters sayIf you found gold coins, the tax man wants a piece
At the same time, they must be mindful they may live to ages 85, 95 or even 100, and starting to plan for that now, he said. One step that can help is talking to a financial advisor, Eckman said.
The research finds while 74% of people in their 50s say it is extremely or very important to save enough money to eventually stop working, just 57% said they expect to be able to retire. Moreover, half of people in midlife are struggling to get by financially, more than other age groups studied.

Because midlife respondents also tended to be the least healthy, they may also benefit from prioritizing exercise and healthy eating to position themselves for better quality lives later, Eckman said.
“One of the best ways to deal with stress is to look at that notion of health and well-being and sleep and diet and exercise and the way that can reduce stress,” Eckman said.

Younger individuals focused on ‘here and now’

Younger adults ages 20 to 39 are focused on their current financial challenges, from paying student loans to saving for a down payment for a home or other goals.
Younger individuals would benefit by learning to balance those priorities with retirement saving now, Eckman said.

“If you can just start saving and get in a routine of saving a little for that long-term goal of retirement, you’re going to thank yourself loudly later in life, because it gets you that foundation,” Eckman said.
That younger cohort – including millennials and Gen Z – is anticipating a complex, multi-part working life, with perhaps more jobs and more careers, the research found.
Importantly, they are also making exercise a priority, including yoga and meditation.

Older generation move into next phase of life

Momo Productions | Digitalvision | Getty Images

Older adults ages 60 to 79 are now making the most of what they have, according to Eckman. Of all age groups, the research found they demonstrate the greatest financial stability and confidence.
Moreover, this age group is now exploring their ability to continue to work in some capacity, even part-time.
People in their 70s were more likely to exercise every day or frequently, showing new habits can be created even later in life.

Where to look for inspiration

For all age groups, taking action towards better financial or physical health today to prepare for their future selves may be a challenge.
A filter that recently trended on TikTok let people get a glimpse of what their older selves may look like.
“The role in simulation in helping us see that future self is incredibly powerful,” said Joseph Coughlin, director of the MIT AgeLab.

“The challenge will be how do we remind you periodically to reinvigorate that desired behavior, particularly for health and wealth,” he said.
One effective source of inspiration may be older individuals who are living quality lives, Eckman said, like the 80-year-old uncle who has the active lifestyle of someone who is 30 years younger.
“We see these inspirational stories of people embracing their longevity and making the most out of a very long and fulfilled life,” Eckman said. More

More than 1 in 4 vehicle shoppers in Texas and Wyoming committed to paying more than $1,000 a month, which experts say is due to the high volume of large pickup truck purchases, according to auto site Edmunds.
Large trucks are the third-largest vehicle sales segment in the U.S. and have the “heaviest finger on the scale” when it comes to payments, said Edmunds analyst Joseph Yoon.
“People are not using their trucks just for work anymore; they’ve become a status symbol,” said auto industry analyst Paul Waatti.

A 2024 Chevrolet Silverado EV RST all-electric pickup truck on display at the International Auto Show at the Jacob Javits Convention Center in New York on April 13, 2022.
China News Service | China News Service | Getty Images

Car shoppers are paying more than ever to finance new vehicles — and pickup trucks are driving up the average cost in at least two states, according to a report by auto site Edmunds.
During the second quarter, more than 1 in 4 vehicle shoppers in Texas and Wyoming committed to paying more than $1,000 a month, which experts say is due to the high volume of large truck purchases in those states, according to Edmunds.

More than 1 in 5 shoppers in seven other states — Colorado, Kansas, Louisiana, Montana, Nebraska, North Dakota and Utah — are also forking over more than $1,000 for their vehicles each month, Edmunds found.
More from Personal Finance:Many borrowers may have a different student loan servicerHere’s how to save on supplies, deal hunters sayIf you found gold coins, the tax man wants a piece
The average monthly auto payment reached $733, a new record, in the second quarter of the year, according to another Edmunds report. The average monthly payment for all types of trucks was $913.
Large trucks are the third-largest vehicle sales segment in the U.S., after compact and midsize SUVs, and account for the “heaviest finger on the scale” when it comes to the average car payment, said Joseph Yoon, a consumer insights analyst for Edmunds.

“With their sales volume, it’s the trucks that are doing the most damage in terms of pushing the prices higher,” he added.

Tight inventory and sky-high prices have kept interested truck buyers on the sidelines, but as the market cools, shoppers are coming across better deals. Buyers in Texas and Wyoming, particularly, are jumping back into the market and financing $50,000 vehicles, said Tom McParland, contributing writer for automotive website Jalopnik and operator of vehicle-buying service Automatch Consulting.

Large trucks can rev up costs

Full-size pickup trucks, the segment where monthly payments can reach north of $1,000 a month for new vehicles, made up 14.5% of the total market in 2022, said auto industry analyst Paul Waatti.”If it’s almost 15% of the market, and most are $50,000 to $60,000 as an average,” he said, “that’s going to significantly drive up the overall industry transaction price.”

Trucks have evolved from utilitarian vehicles to highly aspirational ones that consumers are willing to spend a lot of money on — and automakers are noticing, added Waatti.
A decade ago, top prices for trucks could go as high as $60,000. Nowadays, midsize trucks are soaring past that, and full-size pickups are topping out close to $100,000, he said.
“People are not using their trucks just for work anymore; they’ve become a status symbol,” Waatti said.

‘Cowboys with cash’ in Texas and Wyoming

2024 Chevrolet Silverado HD ZR2 Bison

Texas and Wyoming are states that have always had strong demand for pickup trucks, Waatti explained.
Pickup trucks have larger fuel tanks, allowing these vehicles to have longer ranges. Many drivers in Texas and Wyoming have to navigate long, rural distances between towns or through mountains. 
Additionally, pickup trucks are beneficial for the work many people do in these areas, such as farming, ranching and energy production.
Thus, owning a pickup truck can be key in regions with lots of heavy-duty, hands-on work, Waatti said.

You have your average folks and you’ve got some cowboys with cash.

Tom McParland
operator of Automatch Consulting

“They also speak to that cowboy-ish buyer,” he added.
Many ranchers and people working in oil and gas in Texas, Wyoming and similar states have more cash on hand than people in other parts of the country might expect, experts say.
“It does not seem strange to me that a quarter of the population in Texas have some serious cash” and might think, “‘I couldn’t get one of these fancy trucks before, I can get them now,'” McParland said.”You have your average folks, and you’ve got some cowboys with cash,” he added.Correction: Joseph Yoon is a consumer insights analyst for Edmunds. An earlier version misstated his name and title. More