Investing

Some lawmakers are pushing to increase the IRS reporting threshold for Form 1099-K, which covers third-party business payments.
Before this year, you may have received Form 1099-K if you had more than 200 transactions worth an aggregate above $20,000. But the 2023 threshold is just $600, and even a single transaction can trigger the form.
The threshold doesn’t apply to personal transfers on apps like Venmo and PayPal, such as sending a friend or family member money.

Getty Images

As the year-end approaches, there’s been debate around tax reporting for business transactions on payment apps such as Venmo and PayPal, along with e-commerce companies, such as eBay, Etsy and Poshmark.
Some lawmakers are pushing to increase the IRS reporting threshold for Form 1099-K, which covers third-party business payments. Taxpayers who use a payment app to process transactions for a side hustle or small business, or who sell a product or service through an e-commerce site, will receive a Form 1099-K at tax time detailing that income if their transactions exceed the threshold.

The American Rescue Plan Act of 2021 dramatically reduced the threshold, and now lawmakers are looking to change course.
“There’s bipartisan interest in the backslide because of all the misinformation that’s out there,” said Steve Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center, who addressed the issue on CNBC’s “Squawk Box” last week.
More from Personal Finance:These 3 steps can help you cover rising college costsRather than a recession, we could be in a ‘richcession’ insteadHow to leverage 0% capital gains with lesser-known tax strategy

How the tax rule change affects payment app users

Before this year, you may have received Form 1099-K if you had more than 200 transactions worth an aggregate above $20,000. But the 2023 threshold is just $600, and even a single transaction can trigger the form.
That change is expected to result in a flood of Forms 1099-K in early 2024 when taxpayers typically receive so-called “information returns” from employers and financial institutions. Duplicate copies go to the IRS.

The threshold doesn’t apply to personal transfers on apps like Venmo and PayPal, such as sending a friend or family member money. But experts have expressed concern that some taxpayers may now receive a 1099-K by mistake, creating headaches at tax time.
And given that just one transaction above $600 is enough to trigger the form, even someone who makes a one-off sale of, say, an old couch or hot concert tickets could find themselves with an extra tax document to contend with.
The lower 1099-K reporting thresholds have been controversial amid increased scrutiny of the IRS, particularly among online sellers, gig economy workers and others who worry about confusion and higher taxes.

There’s bipartisan support for the change

The lower Form 1099-K thresholds were originally slated for 2022. But the IRS delayed the rule in late December, to “help smooth the transition and ensure clarity” for taxpayers and professionals.
Now, with the tax season fast approaching, there’s a legislative push from both chambers to increase the 2023 reporting threshold.

The Republican-led House Ways and Means Committee in June approved legislation to revert the reporting thresholds back to 2022 levels. There are also proposals in the Senate, including the Red Tape Reduction Act, introduced by Sens. Sherrod Brown, D-Ohio, and Bill Cassidy, R-La., in May, which aims to raise the threshold to $10,000.
But advocates say the lower 1099-K threshold will reduce taxpayer burden. “[Information returns] don’t actually increase taxes,” said Rosenthal. “They only help determine taxes already owed.”

Form 1099-K has ‘always been problematic’

Meanwhile, there are lingering worries among tax professionals about the 1099-K change. The American Institute of CPAs in June renewed its support for raising the reporting threshold to avoid “significant confusion in the tax system.”
In a June letter endorsing the Senate’s Red Tape Reduction Act, AICPA voiced concerns about an administrative burden for taxpayers and the IRS, especially if Forms 1099-K wrongly include personal transactions, such as gifts or reimbursements.

Form 1099-K has always been problematic.

Phyllis Jo Kubey
Immediate past president of the New York State Society of Enrolled Agents

“Form 1099-K has always been problematic,” said Phyllis Jo Kubey, a New York-based enrolled agent and immediate past president of the New York State Society of Enrolled Agents. “Even in its older iteration with the higher thresholds and number of transactions, a lot of times it just didn’t accurately reflect what should be taxable income.”
For businesses selling goods, she said Form 1099-K may not accurately reflect returns or adjustments. “But if the IRS has a document that says ‘X,’ and you’re saying ‘Y’ on your tax return, it may provoke more scrutiny, which is another level of time, expense and aggravation that people don’t need,” Kubey said.

How to prepare for the 1099-K reporting change

Even if you don’t receive a Form 1099-K, business payments are still taxable, and experts say it’s a good time to start getting organized.
Regardless of the payment platform, it’s important to “be familiar with the systems,” know where to access payment information and to keep your account open, said Albert Campo, a certified public accountant and president of AJC Accounting Services in Manalapan, New Jersey.
“Our biggest piece of advice is to make sure you get the [payment] information as soon as you have it available,” which may save time next filing season, he said. More

Celebration at the Nasdaq during the Datadog IPO, September 19, 2019.
Source: Nasdaq

Selecting the right stocks against a backdrop of mixed economic data and earnings can be challenging for investors. One strategy is to track the investment ideas of Wall Street pros and glean valuable insights into making successful stock decisions.
To that end, TipRanks, a platform that ranks analysts based on their past performance, has identified five stocks well liked by top-ranking analysts. Learn more about these stocks below.

Amazon

E-commerce and cloud computing giant Amazon (AMZN) is this week’s first pick. Earlier this month, the company trounced analysts’ second-quarter earnings estimates and returned to double-digit revenue growth.
DBS analyst Sachin Mittal noted that, after seven quarters of losses due to macro headwinds, the company’s retail segment generated operating profit in the second quarter. The analyst expects the retail segment to be a key driver of AMZN’s share price appreciation from this year onwards.
He also noted that, with 32% share of the global cloud infrastructure market, AWS is the most valuable business for Amazon. It is worth noting that AWS accounted for only about 17% of AMZN’s overall revenue in the second quarter but generated 70% of the company’s profit.
Mittal increased his price target for AMZN to $175 from $150 and reaffirmed a buy rating on the stock, citing the company’s leadership position in e-commerce and dominant position in cloud through AWS.
The analyst is also optimistic about the robust growth opportunity for Amazon’s online advertising business. “More advertisers are turning to AMZN’s retail media network to deceive Apple’s privacy changes and get closer to shoppers,” Mittal said.

Mittal ranks No. 744 among more than 8,500 analysts on TipRanks. His ratings have been successful 75% of the time, with each rating delivering an average return of 18.4%. (See Amazon insider trading activity on TipRanks).

AppLovin

Mobile app technology platform AppLovin (APP) recently impressed Wall Street by surpassing second-quarter earnings estimates. The company also issued better-than-anticipated revenue guidance for the third quarter.
Following the Q2 print, Goldman Sachs analyst Eric Sheridan increased his price target for AppLovin to $50 from $25 and reiterated a buy rating. The analyst noted that the evolution of the company’s software platform drove revenue and margin upside in the second quarter, in the wake of improving industry trends.
The analyst raised his operating estimates to reflect higher revenue growth expectations, fueled by the launch of the company’s latest artificial intelligence (AI)-based advertising engine, Axon 2.0.
Despite near-term concerns about volatility in the advertising and gaming end markets, Sheridan is bullish on the stock. He continues “to look long-term at the collection of businesses under AppLovin as producing above average industry growth and a strong margin profile in a recovered mobile ads/mobile gaming landscape.”  
Sheridan holds the 188th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 61% of the time, with each rating delivering an average return of 13.3%. (See AppLovin Stock Chart on TipRanks)

Datadog

Another Goldman Sachs analyst on this week’s list is Kash Rangan, who remains bullish on Datadog (DDOG) even after the cloud-based IT monitoring and security platform spooked investors with its lackluster revenue outlook for the third quarter. The company also trimmed its full-year revenue guidance.
Rangan noted that the slowdown in spending by Datadog’s larger customers and the pace of net new enterprise additions (80 in Q2 2023 compared to 130 in the previous quarter) disappointed investors.
Nevertheless, the analyst is encouraged by the solid second-quarter bookings, with remaining performance obligations (or RPO) increasing 42% year-over-year compared to the 33% growth seen in the first quarter. The growth in RPO was driven by higher average deal size and contract duration.   
Rangan reiterated a buy rating on DDOG stock with a price target of $114, saying that his long-term thesis remains intact. “Datadog maintains its competitive advantage as an E2E [end-to-end] observability platform as validated by product consolidation driving large deal sizes.”
The analyst also highlighted solid product stickiness, growing platform penetration, and product innovation as reasons for his optimism.
Rangan ranks 601 out of more than 8,500 analysts tracked on TipRanks. Also, 58% percent of his ratings have been profitable with an average return of 8%. (See Datadog’s Blogger Opinions & Sentiment on TipRanks)  

Royal Caribbean

We now move to cruise operator Royal Caribbean (RCL), which recently raised its full-year outlook and reported blockbuster second-quarter earnings. The company is enjoying strong business due to pent-up travel demand.
This week, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on RCL and raised his price target to $139 from $102, citing stellar demand for cruise vacations, the company’s industry-leading position and its solid value proposition.
The analyst thinks that the company is well-positioned to gain from the reprioritization of consumer spending toward travel and experiences following the pandemic. He said that demand in North America remains strong. In particular, Feinseth expects RCL’s “Perfect Day at CocoCay” private island resort to be a key growth driver and industry differentiator, which could fuel significant incremental revenue growth and yields.
“RCL’s current liquidity and ramp-up in cash flow will enable the ongoing funding of its fleet expansion and upgrades, growth initiatives, and balance sheet optimization,” said Feinseth.
Feinseth holds the 266th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 11.8%. (See RCL Financial Statements on TipRanks) 

Netflix

We end this week’s list with streaming giant Netflix (NFLX), which reported upbeat second-quarter earnings but fell short of analysts’ revenue expectations.
Despite the decline in NFLX shares since its Q2 results, JPMorgan’s Doug Anmuth reiterated a buy rating on the stock with a price target of $505. The analyst pointed out certain areas that investors are concerned about, including paid sharing monetization and how and when it will boost average revenue per membership.
While paid sharing monetization is happening at a slower pace than Anmuth’s initial forecast, he continues to expect it to be highly accretive to revenue over time. Of the more than 100 million password-sharing users globally, the analyst expects Netflix to monetize 18.8 million by the end of this year, 31 million by the end of 2024 and 38 million by the end of 2025.    
However, Anmuth, who ranks 92 out of more than 8,500 analysts tracked on TipRanks, expects advertising to be a bigger and more reliable revenue stream than paid sharing for Netflix in the future.
Calling Netflix a key beneficiary of the ongoing disruption of linear TV, the analyst said: “The recent launch of NFLX’s ad-supported tier, as well as the broader Paid Sharing launch, should further help re-accelerate subscriber & revenue growth while driving high-margin incremental revenue.”
Anmuth has a success rate of 61% and each of his ratings has returned 17.1%, on average. (See Netflix Hedge Fund Trading Activity on TipRanks). More

As inflation subsides, Social Security beneficiaries may see a lower cost-of-living adjustment in 2024.
But estimates may change in the next two months.
Here’s why a more active hurricane season may be one factor to watch.

Ascentxmedia | Istock | Getty Images

How hurricane season may influence COLA figures

Much of the disparity between the indexes is due to the heavier weighting of oil and gas prices in the CPI-W, according to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League.

Those prices are a key factor to watch in new CPI data to be released in September and October that will affect the final benefit adjustment for 2024.
“The COLA estimate will go up if the price of gasoline jumps considerably,” Johnson said. “The COLA estimate might go down if gas and oil prices drop.”
Hurricanes, in particular, may prompt higher oil and gas prices, she said.

This year’s hurricane season, which lasts from June 1 to Nov. 30, has a 60% chance of being “above normal” due to record high ocean temperatures, according to the National Oceanic and Atmospheric Administration.
“Certainly, hurricane season bears close monitoring, and we are entering the heart of it now,” said AAA spokesman Andrew Gross.
“A major storm impacting the Gulf Coast and nearby refineries will likely lead to a spike in gas prices for a few weeks,” he said.
However, the pressure may be off pump prices at the moment, he said, due to a combination of lower oil prices and flat demand. The national average for a gallon of gas was $3.87 as of Friday, according to AAA.

Seniors still struggling with high inflation

Even if the Social Security COLA rises above the 3% estimate for 2024, it still most likely will not come close to the record 8.7% boost to benefits beneficiaries saw this year.
That may be tough for people age 62 and up who are still grappling with higher costs due to inflation, Johnson said.
“Economists are saying inflation is moderating and things are getting better, but consumers are still faced with high prices,” Johnson said.
Housing, food and health-care costs represent about 80% of the typical seniors’ budget, she said.
Some of those costs don’t typically tend to go back down, particularly with regard to housing, Medicare and health-care costs, Johnson noted. More

The Federal Reserve raised interest rates by a quarter of a percentage point last month in its continued effort to tame inflation.
But the Fed’s future moves are unclear, making the landscape of savings options more confusing for consumers.
Still, it’s a “very good time to take advantage of the higher savings yields,” said Bankrate senior economic analyst Mark Hamrick.

Peopleimages | Istock | Getty Images

1. High-yield savings accounts

The top 1% of savings accounts has an average 4.69% rate, according to DepositAccounts.com. But only 22% of investors are earning 3% or more on their cash, according to a Bankrate survey conducted earlier this year. 

High-yield savings accounts, with easy access to your funds, are worth considering, said Ken Tumin, founder and editor at DepositAccounts.com. 
They’re also safe places to keep your cash. Most savings accounts are covered by the Federal Deposit Insurance Corporation, which generally offers depositors $250,000 of coverage per bank, per account type.
While investors expect the Federal Reserve to start cutting interest rates next year, online savings account rates won’t fall significantly until the policy shifts, he added. 

2. Certificates of deposit

Certificates of deposit — often called CDs — guarantee a set interest rate for a specific period of time, which “can be a good option,” said Tumin. 
Whether an investor decides to go for an online bank, local credit unions or bigger banks, they can get significantly competitive rates. 

The top 1% average for one-year CDs can be as high as 5.55% as of Aug. 18, according to DepositAccounts.com. 
Rates are also typically “locked in,” meaning even if interest rates begin to go down, your investments will keep growing at the same rate until maturity. 

3. Treasury bills

Amid rising interest rates, Treasury bills have also become a competitive option for cash, with yields well above 5%, as of Aug. 18. Backed by the U.S. government, Treasury bills are considered “very safe,” according to Tumin, with terms ranging from one month to one year. 
You can buy Treasury bills, or “T-bills,” through TreasuryDirect, a website managed by the U.S. Department of the Treasury, or through a brokerage account. 
One of the perks of buying through a brokerage account is more liquidity, meaning you can access the money faster if needed. The trade-off is you’ll earn a slightly lower yield compared with that of T-bills purchased through TreasuryDirect.

4. Money market funds

Another option to consider is short-term money market funds, said certified financial planner Chris Mellone, partner at VLP Financial Advisors in Vienna, Virginia. 
Money market mutual funds — which are different from money market deposit accounts — typically invest in shorter-term, lower-credit-risk debt, such as Treasury bills.

Yields are closely tied to the federal funds rate and some of the biggest money market funds are paying north of 5%, as of Aug. 18, according to Crane Data. 
With more interest rate hikes still possible from the Fed, Mellone currently prefers short-term money market funds over CDs for higher rates and more flexibility. “It’s really the best of both worlds,” he said.
However, there are a couple of downsides. Although money market funds aren’t likely to lose value, declines have happened, and investors should know there’s no FDIC protection.
For more on savings accounts, check out CNBC Select’s recent ranking on the best high-yield savings accounts. More

Two-thirds of Americans have a negative view about tipping, according to a recent Bankrate report, particularly when it comes to contactless and digital payment prompts with options that can range from 15% to 35% for each transaction.
While tipping 20% at a sit-down restaurant is still the standard, most people leave less for carry out, if anything at all.
Here’s how much the experts tip.

Thanks to “tipflation,” a 20% gratuity isn’t what it used to be.
With more opportunities to tip and predetermined point-of-sale options that now range from 15% to 35% for each transaction, tip expectations are growing, whether consumers like it or not.

And most don’t: Two-thirds of Americans have a negative view about tipping, according to a recent report by Bankrate, particularly when it comes to the contactless and digital payment prompts that have popped up nearly everywhere since the Covid pandemic. The trend is also referred to as “tip fatigue.”
More from Personal Finance:’Tipping culture is out of control’. Even businesses agreeConsumers push back against ‘tip creep’Americans have ‘tip fatigue’
“Sometimes you tip to reward good service, but only at restaurants do I tip out of obligation,” said Michael Lynn, a professor of consumer behavior and marketing at the Cornell University School of Hotel Administration.
Otherwise, it depends, Lynn said. “I don’t tip for carry out or counter service,” he added. “I don’t tip the Amazon delivery guy but I do tip the pizza delivery guy.”
Tipping 20% at a sit-down restaurant is still the standard, most etiquette experts say. But there’s less consensus about gratuity for a carryout coffee or other transactions that didn’t involve a tip at all in the past.

While tipping at full-service restaurants has held steady, tips at quick-service restaurants by guests fell to a five-year low of 16.7% at the start of 2023, according to Toast’s most recent restaurant trends report.
These days, fewer consumers also said they “always” tip when dining out compared with last year, according to Bankrate, or for other services, such as ride-hailing services, haircuts, food delivery, housekeeping and home repairs.
“It’s still OK not to tip,” according to Jaime Peters, Maryville University’s assistant dean of accounting, finance and economics. “It really is a tip; it is not obligatory.”
Peters said she primarily tips 20% in a sit-down restaurant, but less for other transactions.

Some workers rely on tips

In most other countries, “tipping remains a small gesture of gratitude,” Peters said.
But in the U.S., tips make up a larger part of workers’ pay, particularly in industries like entertainment, food service, and leisure and hospitality.  
In some of those jobs, workers make less than minimum wage because they are considered “tipped employees.”
Under federal law, employers can pay workers as little as $2.13 per hour — much less than the minimum wage — if the tips they receive bring them up to a baseline salary. (Some states are now increasing the hourly minimum wage for tipped employees or eliminated tipping wages altogether.)

This applies primarily to restaurant workers, although other employees who receive more than $30 a month in tips may qualify.
“Recognize that many service industry workers heavily rely on tips to make a living,” said Heather Altepeter, CEO of National Merchants Association.
“While tipping fatigue can be a concern, consider the livelihood of these workers who depend on gratuities for their income.”
For these workers, tips can boost wages by about 25%, according to data from payroll platform Gusto.
“Tips play a significant role in compensation, although it can vary quite a bit,” said Luke Pardue, an economist at Gusto. 
Subscribe to CNBC on YouTube. More

Life Changes

Some three-quarters, or 75%, of Gen Z and millennial couples say it’s too expensive to get married in the current economy, according to a survey.
While the cost of the average wedding has reached $30,000, some couples do manage to wed for less.
Nowadays, with couples funding almost half of wedding costs themselves, many are more mindful and intentional with their decision-making. 

Peopleimages | Istock | Getty Images

While many young couples may hope to tie the knot one day, some are spooked by high costs. 
Some three-quarters, or 75%, of Gen Z and millennial couples said it’s too expensive to get married in the current economy, according to a survey by the Thriving Center of Psychology. The center polled 906 unmarried Gen Z and millennial pairs in June.

The cost of the average wedding reached $30,000 last year due to steep inflation, per an annual study by The Knot — that’s up $2,000 from 2021.
Gen Z recognizes that weddings are expensive, but the majority, or 66%, say it will be worth the cost, The Knot found in forthcoming research.
However, some couples have been able to wed for a lot less. 
Janet Counts from Front Royal, Virginia, and her husband Brian spent less than $15,000 on their wedding a year and a half ago. 

More from Life Changes:

Here’s a look at other stories offering a financial angle on important lifetime milestones.

“It’s really important for couples to figure out what they want out of a wedding,” said Counts, who is in her 30s. They wed on Feb. 12, 2022, the anniversary of the day they first met. 

Traditions are evolving and more couples are comfortable with smaller, more intimate weddings as they finance the events themselves, said Jason Rhee, a wedding planner based in California. 
Here are ways couples can save on expenses.

Prioritize what is important to you

As recently as a decade ago, parents and in-laws often still pooled funds to pay for a wedding. Nowadays, with couples funding almost half of wedding costs themselves, many are more mindful and intentional with their decision-making. 
Engaged couples should be realistic and have conversations about what the wedding will look like, said Rhee. Be honest about your budget and save money on things that don’t matter as much to you. 
“Prioritize what is important to you,” said Rhee. “Save yourself $1,000 on the cake to give yourself the dream photographer, the venue that you love or the extra 30 minutes at the bar.”

For instance, the Counts prioritized investing in quality food and an open bar, a DJ and photographer, plus a shuttle service for their guests, along with Janet’s bridal gown.
Meanwhile, they were frugal when it came to other areas of the day. While the bride and her bridesmaids held fresh flower bouquets, the couple used artificial flowers purchased at a craft store as decorations and centerpieces. 
If you have no idea what your budget should be, list the elements that you like and start to do the math on what a spending plan would look like, advised Rhee.

‘Be more intentional’ with invitations

Ольга Носова | Istock | Getty Images

The fewer people you invite to your wedding, the more resources you will have for the party, said Rhee.
Couples used to be more welcoming about guests bringing plus-ones or children to receptions, but that is changing. They are being more intentional about who they want to share their day with, added Rhee.
The Counts chose to have an intimate wedding and limited their guest list to 90 people. They were therefore able to splurge on catering, which ended up being the most expensive part of their wedding, ringing up at about $45 per person. 

Be open to new ideas, changes 

Couples should understand that images they see on professional wedding sites should be taken as inspiration and ideas, and not set in stone. 
“Be open to understanding that styles and inspirations are there as suggested forms of ideas, but similar to everything else in your life you’re doing within a budget, you have to understand that there has to be some sort of flexibility,” said Rhee. 

Some couples are leaning into the proverbial “something borrowed” and seriously consider renting over buying, especially when it comes to flowers, fine jewelry and even their bridal dresses.
“This next generation of brides is thinking about experiences over possessions,” said Miriam Williams, co-founder of Atlanta bridal rental company Laine London. “It’s only natural that they’re rethinking what their wedding day might look like.”
Additionally, consider vendors newer in the wedding space, as they tend to offer lower rates. 
“The reason they’re cheaper is because they’re newer, and the reason you’re paying more money [for established vendors] is because that person has more experience,” added Rhee. More

The confluence of changing gender norms, popularity of payment apps and the economic climate tightening people’s budgets is making the already fraught first date a little more tense.
Some women say they’ve had a date ask for his money back after they explained they didn’t want to go out again.

Koron | Moment | Getty Images

Samantha Costanza went on a first date with a man she’d met on a dating app in January 2022.
They got to know each other as they both sipped on hot cider because of the cold at the Brooklyn, New York, bar where they’d agreed to meet. When it was time to pay for the drinks, Costanza’s date handed his credit card to the bartender.

A few days later, he messaged that he’d like to see her again. Costanza didn’t feel the same.
“I spent over an hour crafting a very polite reply that assured him I had a lovely time but just did not see a future connection,” said Costanza, 29, a customer operations analyst.
In response, the man asked Costanza if she could Venmo him back payment for her drinks.
More from Personal Finance:Americans think they need nearly $1.3 million for retirementWhy Americans are struggling with car loansMost parents spend 20% or more of income on child care
“I was in complete shock,” she said. “It made it seem like the only reason he would offer to pay for my drinks was that he expected something from me.”

Relationship and etiquette experts say the confluence of changing gender norms, popularity of payment apps and the economic climate tightening people’s budgets is making the already fraught first date a little more tense.
One symptom may be more awkwardness around how the tab is handled, in the moment and after the fact. Like Costanza, some women say they’ve had a male date ask for his money back after they explained they didn’t want to go out again.
“We are culturally moving into a dating environment that we’re all unfamiliar in,” said New York-based psychotherapist Carli Blau.

Toxic behaviors in online dating apps

The requests for money back after a disappointing date are a symptom of a much bigger problem with modern dating, said Jon Birger, author of “Date-onomics: How Dating Became a Lopsided Numbers Game.”
These situations would be much less likely to occur on a first date involving two people set up by a mutual friend or a family member, he said.
“It’s a byproduct of the awfulness and toxicity of online dating, where every first date is a blind date with a complete stranger,” Birger said. “There’s zero social accountability, which makes it easier for people to behave badly.”
Dating coach Blaine Anderson said a money request after a date is among the biggest taboos.
“Venmo-requesting a woman to split your first date if she doesn’t agree to a second date is pathetic and unethical,” Anderson said.

When men, in particular, ask for their money back, it can underscore the uncomfortable feeling women can get that their covered dinner came with expectations.
“The man considered the cost of that first date an investment, and that investment did not pan out,” said dating app expert Irina Manta, co-host of the podcast Strangers on the Internet.
Erin, a single 40-something in Pennsylvania who asked to use her first name only, felt unsettled when her date later asked for a refund.
After their first dinner together, she knew she wasn’t going to see him again because of his political views. When their check came, she offered to pay her portion but he insisted on covering the full bill.
But then, the next day, when she explained that she didn’t want to see him again, he asked her to Venmo him $30.

There’s zero social accountability, which makes it easier for people to behave badly.

Jon Birger

“It really did feel very off-putting,” said Erin. “It really underscores some kind of sense of entitlement on his part.”
Although many find the expectation that men pay for the first tab old-fashioned, others see it as a kind gesture or a way to show interest.
Costanza said she would have been a bit put off if her date hadn’t at least offered to pay.
“Each drink cost $10, so a total of $20 to cover me on a first date seemed like an expected and polite gesture to show his interest,” she said.

How the economy is taking a toll 

On the other hand, it’s important to consider the economy as a backdrop, said psychotherapist Blau.
Wage stagnation and inflation have left many people feeling squeezed, and dating can be very expensive. Americans spend nearly $700 on dates annually, with the average man spending the most — around $860, according to a 2020 report by LendingTree.
The average cost of a full dinner and a movie across major cities in the U.S. can cost around $159, according to a more recent analysis by MoneyGeek, conducted in 2023.

“That can be really hefty when we’re talking about an economy where people are struggling to pay their rent,” Blau said.
As a result, Blau saw the refund requests a little differently.
“Is it really that they had a bad intention [or] is it that they really couldn’t afford it?” she said.

What to do if it happens to you

Westend61 | Westend61 | Getty Images

If you receive a request from someone after your date, experts say there are pros and cons whether you ignore or pay it.
Ignoring the request sends the message that it was inappropriate, while paying it could be the fastest way to cut ties and never interact again, said Anderson.
Meanwhile, if you intend to request a refund from someone after a date, you may want to reconsider. It’s better to ask to split the bill from the beginning and make your boundaries clear, said Blau.
If getting the money back will help your finances or make you feel better about being rejected, “it’s your right to ask,” she said. 

“It’s also their right to say no,” Blau added.
That’s basically what Costanza did. She ignored the request, and promptly blocked him.
“My time and energy is not refundable,” she said. More

Life Changes

At some private universities, the total cost of college is now more than $80,000 a year.
Overall, the combined income and savings of the average student and their parents can pay for about half of college costs, according to a new report by Sallie Mae.
It’s still possible to appeal for more financial aid for this academic year.

The average sticker price for college, or published costs for tuition and fees, has been rising — but most families don’t pay full price.
Tuition, fees and room and board — plus books and supplies, transportation and personal expenses — total an average $27,940 at a four-year, in-state public college for the 2022-23 school year, according to the College Board, which tracks trends in college pricing and financial aid. 

In total, the equivalent annual cost for a four-year private college is $57,570 on average. At some private universities, the total cost of college is more than $80,000 a year.

More from Life Changes:

Here’s a look at other stories offering a financial angle on important lifetime milestones.

Yet, a new report from Sallie Mae finds the amount families actually spent on education costs last year was $28,026 on average, up 11% from the year before. 
Families took out loans and borrowed money to cover about 21% of the costs. About 29% of college costs were covered by scholarships and grants, while the students’ and parents’ income and savings covered about half, according to the report.
As the mother of a first-year college student and a junior, too, I know that thinking about college bills is daunting. Here are three strategies that can help you pay for college now and save for rising costs in the future.

1. Tap college savings accounts as much as possible 

Gerville | Istock | Getty Images

Saving as early as possible in state-sponsored, tax-advantaged 529 savings accounts lets your savings grow tax-free, as long as the money is spent on qualified educational expenses. Last year, about 30% of parents used college savings plans such as 529 plans to pay for about $7,800 of college costs, on average, according to the Sallie Mae report.

Money in 529 plans can be used tax-free for most education expenses, including tuition, room and board, books, computers and supplies at most two- and four-year colleges as well as technical, vocational and graduate schools. 
“The benefits may outweigh any future reduction in aid,” said Adam Nguyen, founder of Ivy Link, a college admissions advising firm. “Benefits include the wide variety of education expenses that the funds could be used for.”

Starting in 2024, unused funds in 529s [can] be rolled into Roth IRAs, subject to certain exclusions.

Adam Nguyen
founder of Ivy Link

The 529 plan money also can be used to pay for up to $10,000 a year in K-12 tuition for primary or secondary public, private and religious schools, and even homeschooling. 
“Moreover, starting in 2024, unused funds in 529s [can] be rolled into Roth IRAs, subject to certain exclusions,” Nguyen said, referring to a provision in a new federal law that passed last year.
If college is more than a decade away for your child or they’re getting close to the finish line in high school, there are college calculators online that can help you figure out how much you need to save in a 529 plan each month to pay for all or part of college costs at an in-state or out-of-state public institution or private college or university. 

2. Leverage private scholarships

Merit-based aid can cover a significant part of college costs. About 60% of students received scholarships last year and those awards averaged $8,200, according to Sallie Mae. 
“For high school juniors and seniors, now is the time to continue to focus on your coursework — the rigor of your courses, as well as how you’re doing in them,” said Rob Franek, editor in chief of The Princeton Review, a test prep, tutoring and college admissions services company. “Those courses, along with SAT and ACT scores, unlock admission and scholarship dollars for the majority of schools.”

There are more than 1.7 million private scholarships and fellowships available, often funded by foundations, corporations and other independent organizations, with a total value of more than $7.4 billion, according to higher education expert Mark Kantrowitz. 
Check with the college, high school counselors and local nonprofits for potential scholarships. Also, search websites such as Scholarships.com, Fastweb.com and the College Board’s Big Future site. 
You could try to negotiate for more merit aid if you got more money from another school. “The outcome will be highly dependent upon factors like your academic caliber and other offers you might have received from colleges of a similar standing,” Nguyen said, adding that ideally, “this should be done before you accept your offer to attend.” 

3. Appeal for more financial aid

It’s down to the wire for the coming academic year, as many college students may have already started classes, but it may not be too late to appeal for more financial aid. 
For families who remain concerned about making ends meet based on the financial aid award they’ve received, it is possible to ask the college financial aid office for more aid. Aid for the 2023-24 academic year is based on 2021 income. If your circumstances are now different, that should be brought to the financial aid office’s attention.
If you’ve experienced a change in your financial situation, such as a job loss or a disability, contact the college’s financial aid office and send an appeal letter. Check out free templates online that can help you write it.

“This is still a time given a family’s financial situation, if things have changed dramatically from even just a few months ago, without question I would reach out to the admission and financial aid team,” Franek said. 
If you didn’t apply for financial aid this year, it’s also not too late. Students miss out on billions of dollars in federal grants because they don’t fill out the Free Application for Federal Student Aid. Some schools may also require you to fill out the CSS profile on the College Board website to get access to nonfederal institutional aid. You have until June 30, 2024, to submit a FAFSA form for the 2023-24 school year. 
Since the FAFSA is for a single academic year, you have to submit this form every year. The U.S. Department of Education says a revised FAFSA for the 2024-25 school year will be available in December of this year. 
SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox. For the Spanish version Dinero 101, click here. More