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Stephanie Kiser came to New York City to become a screenwriter. Instead, she worked as a nanny for ultra-rich families.
While she earned six figures by her last year in child care, she wanted out.

Stefanie Kiser Book: “Wanted: Toddler’s Personal Assistant”. Cover design by Jillian Rahn/Sourcebooks.
Courtesy: Stefanie Kiser

Stephanie Kiser came to New York City in 2014 as a new college graduate, hoping to become a screenwriter. Instead, she spent the next seven years as a nanny for wealthy families.
Kiser’s new memoir, “Wanted: Toddler’s Personal Assistant: How Nannying for the 1% Taught Me about the Myths of Equality, Motherhood, and Upward Mobility in America,” details her unexpected career detour.

Her seven years as a nanny saw her escorting one client’s daughter to $500-per-lesson literacy tutors on the Upper East Side, driving Porsches and Mercedes for everyday errands and sheltering in place at a family’s home in the Hamptons during the Covid-19 pandemic. Her clients included families with dynastic wealth as well as those with high-paying jobs such as doctors and lawyers.
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In Kiser’s first nannying job, she was paid $20 an hour, far more than the $14 an hour she estimates she would have made as a production assistant under a short-term contract. Plus, she often ended up working extra hours.
“It usually ended up being like $1,000 a week with everything that I was doing,” Kiser said.
That first job opened doors for higher-paid positions through nanny agencies. In Kiser’s final year as a nanny during the pandemic, she estimates she took home about $110,000.

“Even though I had the least respected job of my friends, I definitely was making the most,” said Kiser, who is now 32 and works at an ad-tech company in New York City.
CNBC spoke with Kiser about some of the financial lessons she learned during her time as a nanny, and why she ultimately left the role.
(This interview has been edited and condensed for clarity). 

No prospects for job growth: ‘I was very stationary’

Scarlett Johansson on Location for “The Nanny Diaries” on May 1, 2006 at Upper East Side in New York City, New York, United States.
James Devaney | Wireimage | Getty Images

Ana Teresa Solá: When I first saw this book, I thought of “The Nanny Diaries,” a novel published in the early 2000s and then adapted into a movie. What made you decide to turn your story into a memoir instead of a novel? 
Stephanie Kiser: I read “The Nanny Diaries” when I started my first job. It definitely hit home at the time, but I did feel like it was sort of a satire. I didn’t want to villainize the rich or the poor because I have people I love very dearly on both sides. 
The intention of my book was to make a social commentary. It was my hope that I could bridge this understanding a bit between the two sides because there’s this thought that poor people just aren’t working hard enough and rich people are just inherently bad. 
I don’t think that’s necessarily true, but I think that people who are wealthy, who are employing these people who really need these jobs, they do have privilege and an opportunity to either make someone’s life better or worse.

A contract as a nanny is important because there’s no HR.

Stephanie Kiser

ATS: You mention that you could not afford to work in a professional job in New York because the pay was much lower than you were making as a nanny. Did you feel trapped?
SK: When my last boss read this book, she felt sad and was like, ‘I didn’t realize you were so miserable doing the job.’ I said, ‘No, I wasn’t miserable doing the job. I loved your kids so much, but this was not the job I wanted.’
I did feel trapped. I felt like there’s nothing else I could possibly do, and it got a little bit worse as time went on.
All my friends were growing in these jobs and they were getting more experience in their resume, and I wasn’t. I was very stationary in this position.
It wasn’t a good feeling to feel like there’s nothing else I could possibly do. Now I have a different job and this is the first year that I’m earning more than I did nannying, which is great, but the first couple of years after nannying were definitely really hard financially, making that shift.

‘There’s no HR … the contract is really all you have’

ATS: A family offered you a salary of $125,000, plus full health and dental, a monthly metro card and an annual bonus. But you went with a different family for less pay. You mentioned you were waiting on a contract. Why is that so important in the business?
SK: A contract as a nanny is important because there’s no human resources; there’s no laws protecting you. Your employers are fully in charge of everything and they determine everything. [New York State does have a “Domestic Workers Bill of Rights” with a few protections.]
At a regular job, you can be like, ‘I worked 60 hours already this week, and I’m not going to work more.’ You can’t do that here [with a nanny position.]
The contract is really all you have, and to not get the contract was really worrisome. Your whole life was going to be a nanny for this family. And I was coming off of a job where that had been really tricky, feeling like I wasn’t really a person, and I didn’t want to accept a job where that was the case again. 

Stefanie Kiser Book: “Wanted: Toddler’s Personal Assistant”. Cover design by Jillian Rahn/Sourcebooks.
Courtesy: Stefanie Kiser

ATS: Can you describe the differences between an au pair and a nanny?
SK: An au pair is allowed to work a certain number of hours, like up to 30 hours a week or 40 hours a week, but there is a clear boundary because they often work for an agency. The agency that has sent them has told you very clearly they cannot work more than this.
They get a very small stipend, but they do get specific accommodations, maybe they have their own room. They have all their meals paid for, transportation. An au pair has more things in place to make sure that they’re not taken advantage of. Nannies often don’t have these protections.
Nannies who come from agencies are slightly more protected and those are typically the ones who get contracts. But these are the best of the best nannies; these are career nannies who have been doing this for 50 years; they’ve raised so many kids and they have amazing references. Or it’s a young nanny that just got here after graduating from a great university and has like 10 skills that they are able to offer. So this is a luxury, honestly.

ATS: You also describe the uncertainty associated with this job. It seems like nannying work can have a low barrier to entry, with salary growth potential, but then there are all these other risks.
SK: I’ve known nannies who’ve gotten pregnant and they tell their boss. There’s no, ‘We’re going to pay you three months maternity.’ there’s no, ‘We’re gonna let you leave on month eight so you can rest.’ There’s none of that.
You can never really feel safe in the job. If you have a medical emergency, if anything goes wrong — I’m sure there’s exceptions, but for the most part, you’re sort of just out of luck. It is a really risky career in that sense. 

‘That’s how you know they’re wealthy’

ATS: According to the Pew Research Center, about 47% of childless adults under 50 in 2023 said they are unlikely to ever have children. What would that mean for nannies?
SK: I wonder if that applies to the sort of people that I’m writing about. I wonder if for them this is a decline we’ll see or if they’re sort of outliers.
If it is the case, I think it’s a really serious problem. There are a lot of people in New York who come here and they need something to get by, who babysit, maybe it’s their after work job and that’s how they do it. Or there’s people who don’t have papers that are really limited in what they can do, and a lot of times, housekeeping and nannying is the only option.
ATS:  At the end of the book, you write that you received an offer as a personal assistant for a CEO with a $90,000 salary and benefits. Was that starting point below what you had been earning as a nanny at the time?
SK: For sure. As a nanny, I had made $110,000 … So it was a significant decrease.
I had to work very quickly and very hard to get promoted. I was a personal assistant and I was an executive assistant, I changed companies last July and I became a senior assistant, and that was the role where I finally made more than I did nannying. And I don’t think I could have done this, made this transition, if my student loan payments weren’t paused because of Covid.
ATS: You write in your book that some families signal their wealth by having many children. I’m curious to hear more about that.
SK: I think about where I was born and where I came from, and anytime there was a family that had like five or six kids, it was sort of like, ‘Well that makes sense, because they weren’t wealthy.’ And then you come to New York and you see someone on Park Avenue that has five or six kids, and it’s like, ‘That’s how you know they’re wealthy.’

Here, if you do have three kids, you start sending them to preschool at $40,000 a year, and then they’re going to these elite schools from kindergarten to 12th grade that are $60,000 a year, and then you’re sending them to Harvard for four years.
And it’s not even just the schooling, it’s most of the time you’re sending three kids to this school, then you’re employing a full-time nanny after they have private guitar lessons.
ATS: What would you tell women in their 20s who are in the shoes you were in a few years ago? 
SK: Do things in parallel. I don’t think I would have been happy if I had done just the nannying. I couldn’t have survived on just writing, but I think that by doing this in parallel, things turned out exactly how they were supposed to be for me.
Nannying was so important for me because not only was I able to make money to live, but it allowed me to get a foundation. When I moved to New York, I had nothing. Now I have a fully furnished apartment, things that you need to be a fully functioning adult. I have a dog, I’m able to take care of him and I have a car. These are things that I couldn’t have done without being a nanny. More

Employees prepare food orders at a Portillo’s restaurant in Chicago, Illinois, on Tuesday, Sept. 27, 2022.
Christopher Dilts | Bloomberg | Getty Images

Company: Portillo’s (PTLO)

Business: Portillo’s owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut fries and chocolate cake shakes. Portillo’s also offers its products through its website, application and certain third-party platforms.
Stock Market Value: $901M ($12.27 per share)

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Portillo’s in 2024

Activist: Engaged Capital

Percentage Ownership:  9.90%
Average Cost: $11.50
Activist Commentary: Engaged Capital was founded by Glenn Welling, a former principal and managing director at Relational Investors. Engaged is an experienced and successful small cap investor and makes investments with a two-to-five-year investment horizon. Its style is holding managements and boards accountable behind closed doors.

What’s happening

Engaged announced that they have communicated with Portillo’s regarding potential steps to improve the company’s business, including by optimizing restaurant performance, improving restaurant-level cash-on cash-returns, enhancing corporate governance through potential changes to the composition of the board, and exploring a sale of the company.

Behind the scenes

Portillo’s is an iconic midwestern fast casual chain founded more than 60 years ago. It has a differentiated menu anchored by Italian beef sandwiches, hot dogs and milkshakes. The company was acquired by private equity firm Berkshire Partners in 2014 from the founder for approximately $1 billion. Berkshire took it public in October 2021 at $20 per share, and the stock soared to $54.22 per share about a month later. Since then, Berkshire has been selling its position down from 66% to 19% while the stock has declined back below its IPO price. Portillo’s Chicago locations are still among the most productive fast casual restaurants in the industry doing $11 million average unit volume (AUV) and 30% restaurant margins. The non-Chicago locations have achieved AUVs of $6 million to $7 million, more than double quick service restaurants and fast casual industry averages.

While Portillo’s has much larger AUV than its peers, the company has an even larger average footprint than peers. While management has been decreasing store size, stores are still 1.5 to 3 times larger than peers. But store size is only one of the problems. This issue is exacerbated by the company’s practice of owning its buildings despite leasing the land it is on. In a business where cash-on-cash returns are paramount, this structure does not make a lot of sense. In addition to costing more to build stores ($6 million to $7 million, which is two to three times higher than peers), these large footprints have driven inefficiencies across labor, maintenance and various other expenses inside the restaurant. Additionally, management has been slow to implement traffic-driving mechanisms, such as loyalty programs and ordering kiosks, both of which have proven successful for competitors. Finally, while customers rate the food and the brand very high, brand awareness is not as strong as it could be, likely in part due to the low marketing budget: 1% of revenue compared to 2% to 3% for growth peers.
The good news is that all these issues make for a lot of opportunity – and many value improvements are already underway. Management has announced a new “Restaurant of the Future” design opening in the fourth quarter that reduces square footage to 6,300 square feet (from 10,000 square feet) and lowers build costs to approximately $5.2 million (from $6 million to $7 million). This is a good indication that they are acknowledging the problem and taking a step in the right direction, but this is a fraction of what can be done to optimize capital allocation. Additionally, management has begun investing in technology and testing small kiosks to drive same-store sales growth, renewing operational focus on drive thru and reducing wait times. The company is also undertaking a big advertising initiative in Chicago to coincide with the beginning of the NFL season. These are great steps, but the pace of these initiatives has been too slow.
Engaged thinks that by being an active shareholder and bringing on a new chief operating officer at Portillo’s, the improvements at the company can be expedited and optimized leading to the expansion of this beloved regional chain to a national brand. Currently, Portillo’s trades at 10-times forward earnings before interest, taxes, depreciation and amortization. That’s a significant discount to other much more established, known and national QSRs, such as Shake Shack (24-times) and Chipotle (27-times). Closing this gap will take significant capital allocation improvements, technology initiatives, marketing plans, real estate restructurings and operational advancements. Engaged is supportive of management and expects they will recruit a strong operator into the presently vacant COO role. Engaged has a lot of experience in this industry and may be right, but we see this as heavy lifting for an activist campaign – more so than usual. We think it will take more than just a new COO, but directors with financial, marketing, technology and real estate experience. Engaged itself has a strong track record in this sector and has had board seats at Del Frisco’s and Jamba, in addition to settling for an independent board seat at Shake Shack. We expect the firm to look for a board seat at Portillo’s, and the company could certainly benefit from the experience and institutional perspective Engaged brings to the table.
Finally, if management cannot create shareholder value through these operational enhancements, there may be a strategic play. Berkshire Partners’ has taken this company out of the stone age into the 20th century. Now, someone needs to take the baton and bring it into the 21st century and the future. This could be another private equity firm or a strategic investor with the infrastructure and team to quickly expand Portillo’s into a national brand.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

A massive data breach by a company named National Public Data could have made billions of personal financial records vulnerable.
Many Americans are wondering if they’ve been personally affected and what to do next.
Here’s how experts respond to some of the biggest questions on the breach.

Glowimages | Getty Images

You may have never heard of National Public Data, yet your personal information may have been compromised in the company’s recent massive data breach.
The background check company, which is owned by Jerico Pictures Inc., recently released details of the breach after a proposed class action lawsuit alleged 2.9 billion personal records may have been exposed. Other reports suggest the amount of records leaked may have been more than 2.7 billion.

In an official data breach notice filed in Maine, National Public Data indicated 1.3 million records may have been breached, said James E. Lee, chief operating officer at Identity Theft Resource Center, a non-profit organization focused on mitigating risks of identity breaches and theft.
“It is entirely possible that it is that low; it’s also entirely possible it’s higher,” Lee said of the number of people affected.
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The information breached may have included Social Security numbers, names, email addresses, phone numbers and mailing addresses, National Public Data states on its website.
A third-party bad actor may have hacked into the data in December, with potential leaks of the information in April and over this summer, the company said on its website. National Public Data did not return a request for comment by press time.

As cyber professionals dig into the breached data, they’re finding that not all of it is accurate and much of the information was already available. “The reality is there’s nothing new in this data,” Lee said.
Still, experts say news of the breach is a great reminder to take steps to protect your personal information. Here’s a roundup of answers to common consumers are asking now.

Can you be affected even if you’ve never heard of National Public Data?

Yes. National Public Data is a background check company that provides information either through legitimate sources or by scraping it off the web, Lee said. Because the data is collected more casually, it can be gathered without consumers’ permission and outside of certain regulations. As a result, it may be inaccurate or outdated, he said.
Certain information, such as when you buy a house or pay property taxes, technically is public record, said Cliff Steinhauer, director of information security and engagement at The National Cybersecurity Alliance, a nonprofit focused on cybersecurity awareness and education. Companies can collect and aggregate that publicly available data to gather a picture of who someone is, he said.
“You have varying levels of companies’ ability to protect the data that they’re collecting, and they may not fall under any regulation to do so because it’s like public data to begin with,” Steinhauer said.

Is there a way to know if your Social Security number has been affected?

Certain cyber groups have set up websites to enable individuals to search to see if their personal data was affected by the breach, Lee said. One site — NPDBreach.com — allows for a search by full name and zip code, Social Security number or phone number. Another site — NPD.pentester.com — allows for search based on first name, last name, state and birth year.
“I certainly don’t recommend anybody enter their Social Security number” in the sites, Lee said.
By entering your name, you may get a sense of what information, if any, has been shared. The good news is most people are finding information that has been leaked is inaccurate, Lee said.

What is the best way to protect your personal information?

If you find you’re included in the breach, the steps you should take are not necessarily new.
“There’s nothing additional you should do that you haven’t hopefully have already done, or you know now to do,” Lee said.
Freezing your credit should be at the top of that list. Be sure to submit requests to each of the three major credit bureaus — Equifax, Experian and TransUnion.

A freeze will help block access to your records by bad actors. However, keep in mind you will need to either temporarily or permanently unfreeze your credit if you want to apply for a new credit card or auto loan, for example.
As you freeze your credit, be extra vigilant that you are on the legitimate websites of the credit bureaus, and not look-alike sites aimed at stealing your personal information.
Additionally, you should change all your passwords, particularly if you have repeated passwords among multiple websites. Ideally, you should enable multi-factor authentication for personal websites to help keep your financial data secure. Also, never share your personal information while using public internet.

Is it worthwhile to pay for extra protection?

In addition to freezing your credit, there are ways to purchase additional protection.
Sites like National Public Data may allow for individuals to opt out of being included in their data collections. However, because there are so many data brokers, it can be time consuming for consumers to contact each one, Steinhauer said. To help, consumers can pay for a data broker removal service that will contact the websites on their behalf.
Additionally, identity theft monitoring tools will let you know if someone tries to open an account using your personal information.
Dark web monitoring services can let you know if your information was found in a data breach that was published on the dark web.

Can you be entitled to money damages if you’re affected by the breach?

While legal organizations may tout the idea that money damages may be available to people affected by the breach, any sums that are eventually paid likely won’t be meaningful, Lee said.
“You’re not going to get a lot of money,” Lee said.
After the 2017 Equifax breach affecting more than 147 million consumers, for example, people reported receiving lawsuit payouts in late 2022 of less than $3 in some cases, while other said they got around $40.
The goal of the solicitations is often to build a multi-state, multi-jurisdiction class action lawsuit, which may consolidate multiple lawsuits.
However, they will need to prove actual harm came from this specific data breach, Lee said. Because there have been so many data breaches, it can be difficult to tie a specific piece of data to this one event, he said. More

There’s still time to boost 401(k) contributions and max out your plan for 2024, but not everyone should, according to financial advisors.
For 2024, employees can defer up to $23,000 into 401(k) plans, up from $22,500 in 2023, with an extra $7,500 for workers age 50 and older.
After getting your employer match, you should weigh high-interest debt, emergency savings and short-term goals before maxing out your 401(k).

Hispanolistic | E+ | Getty Images

There’s still time to boost 401(k) contributions and max out your plan account for 2024, but not everyone should, according to financial advisors.
For 2024, employees can defer up to $23,000 into 401(k) plans, up from $22,500 in 2023, with an extra $7,500 for workers age 50 and older. Some 401(k)s allow added savings beyond those limits.

Generally, “it’s a no-brainer” to save at least enough to get your employer’s full matching contribution, which deposits extra money based on your deferrals, said certified financial planner Donald LaGrange, a wealth advisor with Murphy & Sylvest Wealth Management in Dallas.
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After receiving your employer’s full 401(k) match, you should consider “several variables” before adding more to the plan, LaGrange said.   
Some 14% of investors maxed out their 401(k) employee deferrals in 2023, according to a 2024 report from Vanguard. 
Meanwhile, the average 401(k) savings rate in 2023 — including employee deferrals and company contributions — was an estimated 11.7%, which matched a record high from 2022, the same Vanguard report found. 

If you can afford to go further and max out your 401(k) for 2024, here are three things to consider first, experts say.

1. Prioritize high-interest debt

After getting your employer’s full 401(k) match, paying down high-interest debt such as credit cards and auto loans should be a priority, said Austin, Texas-based CFP Scott Van Den Berg, president of Century Management Financial Advisors.
“With today’s higher interest rates, prioritizing debt repayment is crucial if they must choose between the two,” he said.
The average credit card interest rate was hovering near 25% in early August, according to LendingTree. But that could fall once the Federal Reserve starts cutting rates, which could come as soon as September.
“The key is to pay off the debt first, which will free up cash flow,” for higher 401(k) contributions in the future, Van Den Berg said.

2. Plan for short-term goals

Before maxing out your 401(k), you should also consider whether you’ll need the funds for other short-term goals, such as paying for a wedding or buying a home, experts say.
“A 401(k) is not the most efficient account to save for pre-retirement goals,” LaGrange from Murphy & Sylvest Wealth Management said. “Savings should reflect a family’s goal priorities and timelines.”
If you tap your 401(k) before age 59½, you’ll generally trigger a 10% early withdrawal penalty, along with regular income taxes.

3. Weigh your emergency fund

Most experts recommend keeping a minimum of three to six months of expenses in cash or other liquid assets for emergency savings, depending on your circumstances. Some experts say that should be higher for entrepreneurs or small business owners.
Nearly 60% of Americans aren’t comfortable with their amount of emergency savings, up from 48% in 2021, according to an annual Bankrate survey that polled more than 1,000 U.S. adults in May.
If your emergency savings aren’t sufficient, you may consider boosting cash reserves before maxing out your 401(k), experts say.

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If you’re retired with multiple sources of income, you’re expected to withhold taxes or make quarterly payments to avoid IRS penalties.
But some retirees can correct missed tax payments via withholdings from required minimum distributions, or RMDs.
Tax withholdings from your RMD are considered on-time payments, even when used to cover taxes from previous quarters, experts say.

Aire Images | Moment | Getty Images

Retirees may have income from Social Security, a pension, a retirement plan or other sources — and they typically must either withhold taxes or make quarterly payments to avoid IRS penalties.
For 2024, the quarterly estimated tax deadlines are April 15, June 17, Sept. 16 and Jan. 15, 2025. But a lesser-known year-end strategy can cover your taxes while still satisfying IRS rules, experts say.

Certain retirees can correct missed tax payments via withholdings from mandatory yearly withdrawals, known as required minimum distributions, or RMDs. These withdrawals typically apply to pretax retirement savings. 
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“It’s very helpful,” especially when retirees sell investments or real estate that trigger taxable gains, said JoAnn May, a certified financial planner at Forest Asset Management in Riverside, Illinois.
While Social Security benefits are the most common type of retirement income, 56% of retirees also had a pension in 2023, according to a recent Federal Reserve report.
Meanwhile, nearly half of retirees had income from interest, dividends or rental income and roughly one-third had earnings from a job, the Fed report found.

As income increases, retirees typically need to withhold more taxes or boost withholdings, experts say.

Leverage your required minimum distribution

Typically, taxes must be paid by the quarterly deadlines. But some advisors will cover a client’s levies for all sources of income via a withholding from annual RMDs, which generally happen closer to year-end.
The same strategy can be used for retirees who realize at some point that they didn’t withhold the right amount of tax from other income or didn’t pay enough through estimated payments.
“You’re getting credit for making tax payments throughout the year, even though you might have only done it in December,” said CFP Matthew Saneholtz, chief investment officer and senior wealth advisor at Tobias Financial Advisors in Plantation, Florida.

You’re getting credit for making tax payments throughout the year, even though you might have only done it in December.

Matthew Saneholtz
Chief investment officer and senior wealth advisor at Tobias Financial Advisors

Generally, an estimated tax projection can be easier by the fourth quarter. But it’s important to track income and tax liability throughout the year, which can affect other planning strategies, he said.
May from Forest Asset Management, who also recommends the strategy, typically completes RMDs in November to allow time for fixing any issues.
Since 2023, most retirees must start RMDs by age 73, based on changes enacted by Secure 2.0, and that age increases to 75 starting in 2033.
The annual deadline for RMDs is Dec. 31. If you miss the withdrawal or don’t take enough in a given year, there’s a 25% penalty on the amount you should have withdrawn. The deadline for your first RMD is extended to April 1 after the year you turn 73.

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The total cost of attendance at a few colleges and universities is nearing six figures per year.
Although many families will pay a lot less, sky-high sticker prices may be a psychological barrier for students from low- and moderate-income families.
Financial aid, including scholarships, grants and loans, must make up for the affordability gap.

Yale University.
Yana Paskova / Stringer (Getty Images)

The cost of attendance at some colleges is now nearing six figures a year, after factoring in tuition, fees, room and board, books, transportation and other expenses.
Among the schools appearing on The Princeton Review’s “The Best 389 Colleges” list, eight institutions — including New York University, Tufts, Brown, Yale and Washington University in St. Louis — have a sticker price of more than $90,000 for the 2024-25 academic year, according to data provided to CNBC.

Considering that tuition adjustments average roughly 4% a year, those institutions — and others — could cross the $100,000 threshold as soon as 2026, according to a 2023 estimate by Bryan Alexander, a senior scholar at Georgetown University.
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That type of sticker shock “can discourage students from seeing that [college] as a place they can attend, despite grant aid,” said Sameer Gadkaree, president of the Institute for College Access and Success, a nonprofit organization that promotes college affordability.
“It’s simply unaffordable,” he said, particularly for low- and moderate-income families.
Deep cuts in state funding for higher education have contributed to significant tuition increases and pushed more of the costs of college onto students, according to an analysis by the Center on Budget and Policy Priorities, a nonpartisan research group based in Washington, D.C. “It’s absolutely a worrisome trend,” Gadkaree said.

But still, these schools account for “a small slice of the higher education pie,” he added. “The vast majority of colleges are open-access community colleges or state universities where the prices are not that high.”

What families really pay for college

Even though college is getting more expensive, students and their parents rarely pay the full tab out of pocket.
The amount families actually spent on education costs in the 2023-24 academic year was $28,409, on average, according to Sallie Mae’s annual How America Pays for College report. Sallie Mae surveyed 1,000 parents of undergraduate students and 1,000 undergraduate students ages 18 to 24 this spring.
While parental income and savings cover nearly half of college costs, free money from scholarships and grants accounts for more than a quarter of the costs and student loans make up most of the rest, the education lender found.

The U.S. Department of Education awards about $120 billion every year to help students pay for higher education. Beyond federal aid, students could also be eligible for financial assistance from their state or college, or via private scholarships.
But students must first fill out the Free Application for Federal Student Aid, or FAFSA, which serves as the gateway to all federal money, including loans, work-study and grants.
This year, problems with the new FAFSA have discouraged many students and their families from completing an application.
As of Aug. 9, FAFSA submissions were down almost 10% nationally in 2024 compared to 2023, according to the National College Attainment Network, or NCAN.
“We know that fewer students applied for financial aid, which translates into few students attending college,” said Robert Franek, editor-in-chief of The Princeton Review.

With cost being the No. 1 college concern among families, “it is hard for students and parents to see a lofty sticker price and think that school is going to be able to help me,” Franek said.
However, when it comes to offering aid, private schools typically have more money to spend, he added.
Despite high sticker costs, “there are many schools out there that are meeting students’ and families’ demonstrated need, and that is the glorious story here,” Franek said.
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Democratic vice-presidential nominee Tim Walz’s family relied on Social Security benefits after his father died.
Children may qualify for Social Security benefits if one of or both of their parents pass away.
Yet many children may not be receiving the benefits for which they are eligible.

Minnesota Governor and 2024 Democratic vice presidential candidate Tim Walz at the first day of the Democratic National Convention in Chicago on Aug. 19, 2024.
Charly Triballeau | AFP | Getty Images

Minnesota Gov. Tim Walz accepted the Democratic vice presidential nomination at the Democratic National Convention on Wednesday night.
In his speech, Walz credited a particular source of support for helping to get his family to where they are today — Social Security survivor benefits.

His father died of lung cancer when Walz was 19, leaving a “mountain of medical debt,” Walz said. Social Security benefits allowed his family, including his mother and younger brother, to “live with dignity,” he recently posted on social media.
“Thank God for Social Security survivor benefits,” Walz said during his Wednesday night speech.

‘Lots of kids … do not claim their survivor benefits’

About 3.7 million children receive Social Security benefits, according to recent Social Security Administration data.
Children can receive benefits if they are unmarried and younger than 18; between 18 and 19 and are full-time students in grades 12 or below; and age 18 or older with a disability that started before age 22.
If a working parent dies, 98 out of 100 children in the U.S. could get Social Security benefits, the agency estimates. The monthly checks are based on the earnings of a deceased parent.

The average monthly surviving child benefit is $1,103 as of July, with more than 2 million children receiving those checks, according to the Social Security Administration.
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Yet families are not always aware they qualify for this financial support.
“Lots of kids all across the country do not claim their survivor benefits,” Social Security Commissioner Martin O’Malley said at a National Academy of Social Insurance event in Washington, D.C., in June.
Data suggests as many as half of orphaned children in the U.S. are not receiving the Social Security benefits for which they are eligible, according to Joyal Mulheron, founder and executive director at Evermore, a nonpartisan nonprofit focused on improving the lives of bereaved people.
“That’s … children potentially who could be lifted out of poverty as a result of accessing this benefit,” Mulheron said.
The Social Security Administration is working to figure out who those families are and to develop more targeted approaches to reach them, O’Malley said at the NASI event in June.
To date, those efforts have included sending information letters to households with potential applicants, launching a new web page on survivor benefits and working with states and communities to help raise awareness of these benefits, according to the agency. In Utah, for example, a check box has been added to death reporting forms to indicate when the deceased has a minor child.

How children can qualify for Social Security benefits

Christopher Hopefitch | The Image Bank | Getty Images

More than half of children who receive Social Security checks have had a parent who worked and paid taxes into the program die, according to the Social Security Administration. Those children may receive up to 75% of the deceased parent’s basic benefit.
To qualify for survivors’ benefits, children do not have to live with a parent or receive financial support from them, according to the Social Security Administration. Additionally, the child’s parents do not have to have been married.
In some situations, surviving parents who care for children under 16 may also be eligible for benefits.

There are other ways in which children may qualify for benefits.
For example, they may also be able to receive benefits if they have a living parent who is retired or disabled and who is eligible for Social Security. Those children may receive up to half of their parent’s full benefits.
The amount of benefits children receive may be adjusted based on a maximum family benefit, a limit on how much a family may receive per month based on a worker’s earnings record. The formula for that varies based on whether the payments are related to disabled or retirement and survivor benefits.

‘You don’t want to see anybody lose out on any benefits’

When someone dies, a funeral director may send a family to Social Security, particularly since there may be a $255 lump sum death benefit available, said Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator.
At that time, widows and widowers may be informed of the benefits available to them, as well as their children, he said. Still, it’s possible some situations may fall through the cracks.
Children may not access the benefits for which they are eligible if they switch to a different guardian, for example, who many not be able to answer all of Social Security’s questions, Mulheron said. Families may also fail to access benefits due to immigration issues, missed deadlines or administrative errors with applications, she said.
It could help for the Social Security Administration to make applications for children’s benefits more accessible online, Mulheron said.

“You don’t want to see anybody lose out on any benefits, because that’s what the benefit is there for,” Blair said.
“If you think you might even have an inkling that there might be something payable, call and ask,” he said.
The Social Security Administration can be reached at 1-800-772-1213. When applying for children’s benefits, the agency may require you to provide a child’s birth certificate, proof of birth or adoption, the parent’s and child’s Social Security numbers, and when relevant, a parent’s death certificate or medical evidence of a child’s disability. More

Traders work on the floor of the New York Stock Exchange during morning trading on August 20, 2024 in New York City.
Michael M. Santiago | Getty Images

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Here’s what CNBC TV’s producers were watching as stocks rose on Wednesday and what’s on the radar for the next session.

Retail in the U.S.A.

While Target and TJX reported positive news that boosted the stocks’ prices Wednesday — with TJX getting a 6% bump and Target an 11% jump — we’re turning our attention to the mall real estate investment trusts.
Retail earnings this season — including Target, TJX and Macy’s, which fell nearly 13% in Wednesday’s session — all indicated a Great American Consumer who is becoming more cautious.
Kimco and Simon Property Group both rose more than 1% Wednesday.
Both stocks are up about 5% in August, and both hit new highs this week.
Brixmor, which operates open-air shopping centers, hit a new high Wednesday. The stock is up 9% in a month.
Tanger, the outlet mall operator, is 4% from the 52-week high hit back in March. The stock is up 2.6% week to date and up 24% in the past year.

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Tanger in 2024

O Canada

Ahead of a possible rail strike in Canada, shares of Canadian National Railway are 15% from the March high. The stock is down about 10% in three months.
CNBC’s Lori Ann LaRocco will be watching it closely.
Canadian Pacific Kansas City is 13% from the March high. The stock is flat in 2024.
Norfolk Southern is 8% from the March high. Shares are up 7.5% in three months.
Union Pacific is 5% from the February high. Shares are almost exactly flat in 2024.
CSX is 16% from the February high.

Brent crude

The commodity is now negative for the year after falling 1.5% on Wednesday.
West Texas Intermediate crude is up 0.4% in 2024.
Thanks to CNBC data chief Gina Francolla for watching oil.
The S&P 500 energy sector is up 5.7% this year. Only the real estate sector ranks below it.
Exxon Mobil is up about 14% in 2024.
Chevron is down 2.6% in 2024.

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Exxon Mobil in 2024

Infrastructure in the U.S.A

CNBC TV’s Pippa Stevens will report on the prospect of a new round of infrastructure spending.
The S&P 500 materials sector is up 7% year to date. The S&P 500 is up roughly 18% in 2024.
Vulcan Materials is 11% from the July 31 high. The stock is up 9% in 2024.
Martin Marietta is 14% from the April high. It’s up 8% so far in 2024.
Emerson Electric is 13% from the July 16 high. The stock is up 7% in 2024.
Mosaic is 31% from the September 2023 high. Shares are down 22% in 2024.
Freeport-McMoRan is 20% from the May high. It’s up 3% in 2024. 

Political ad dollars

CNBC TV’s Julia Boorstin will report on where the political ad dollars are going this cycle.
The election season is usually strong for local TV operators as House and Senate candidates load up on advertisements.
Gray Television is down 46% so far this year. The stock closed at $4.84 Wednesday.
Tegna is down 11% this year. The stock closed at $13.63. 
E.W. Scripps is down 73% so far in 2024. It is a $2 a share stock.

Peloton reports before the bell Thursday

The stock is up 2.75% in the past three months. Overall, it’s not a good scene: The stock is down 52% in a year.

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Peloton Interactive shares in the past year

Baidu reports before the bell

The Chinese e-commerce stock is 40% from the 52-week high.
The stock is down 15% in the past three months.
Competitor Alibaba is down 3% in three months, and it’s 13% from the 52-week high.

Williams-Sonoma reports before the bell

The stock is down 8.5% since last reporting three months ago.
It is 17.5% from the 52-week high.

Cava reports after the bell

The new restaurant chain is up 31.5% in the past three months.
The stock hit a new high on Wednesday, closing at $102.87.
Cava went public in June 2023: It was priced at $22 a share and closed at $43.78 on its first day of trading.

Workday reports after the bell

The HR cloud software company is down 10% in three months. The stock is 25% from the February high.

CNBC’s coverage of the market-moving Jackson Hole Federal Reserve conference starts Thursday

Senior economics reporter Steve Liesman will be there. More