This Sunday, we celebrate the dads, who deserve paid family leave just like moms. And Juneteenth, which marks the end of slavery in the US, but not inequality (more on that later). But before we head into the weekend…
Headlines, Skimm'd
Real big energy. The Fed announced it’s increasing interest rates by three-quarters of a percentage point — its biggest hike in nearly three decades. Because it's fed up with inflation (and predicting lower GDP growth and higher unemployment than previously expected). The goal is to make it more $$$ to borrow money to bring down demand, increase supply, and lower prices. ICYMI, the Fed has already raised rates twice this year — and it’s having an impact. Mortgage rates are up over 6% and auto sales are declining.
Bear with us. This week, the S&P 500 entered bear market territory. Which is why your retirement accounts (hi, 401(k)) may not be looking so hot right now. And crypto hasn’t been doing much better for anyone hoping to Doge a downturn with Bitcoin falling about 70% from its November high. But before you sell your investments, bear in mind (sorry) that the stock market has its bad days (or months…or years), and it’s always bounced back. Think: Long-term gains.
Cruel summer. Right now, there are several shortages primarily affecting women. Those who menstruate are facing near-empty shelves in the feminine care aisle and tampon costs that are reportedly about 10% higher than last year. The baby formula shortage persists, and a plant that recently reopened needed to stop production of a specialty formula due to flooding after severe storms. And a child care worker shortage is forcing some summer camps to cut or cancel programs.
Let’s Talk About…
The Black homeownership gap.
Juneteenth celebrates June 19, 1865, when the last enslaved Black Americans were freed. But it’s also a reminder of slavery’s lasting impact. Recent research shows that gains in Black wealth haven’t made up for the generations of growth lost to slavery. And the racial wealth gap is worse now than it was in the 1980s.Just 45% of Black households own their homes, as of 2022, compared to 74% of white households — a wider gap than before the Civil Rights movement, according to one study. Which impacts Black Americans’ ability to enjoy the long-term financial benefits and security of owning property and building wealth.One idea that could help? Reparations. But until the government takes action, activists and organizations like Habitat for Humanity are stepping up to support Black homeowners. We Skimm’d more about the Black homeownership gap and how to help close it.
Hint: Like the many facets of systemic racism, there isn’t a whole lot individuals can do to fix the problem themselves. But if you’re looking to be part of the solution, there are small steps you can take.
Thing to Know
80.5 years
That’s the life expectancy for women born in the US in 2020. Men born in the US in 2020, on the other hand, are expected to live about 75 years.
Since women tend to live longer, they may need to plan for extra years in retirement. And maybe even stretch their savings further or invest more before saying ‘see ya’ to regular paychecks. Psst…wanna learn more about money-ing with considerations like longevity, pay gaps, and career breaks in mind? Join Women Talk Money, Fidelity’s for-women, by-women community. So you can access resources, special events, and more. Oh, and get tips from women who get what you’re going through. Your future self will thank you.
Make Good (Money) Choices
If you’re looking for student loan forgiveness…
Check your eligibility. Because if you’ve worked in public service, you might be one of the more than 9 million people who qualify for Public Service Loan Forgiveness right now. Psst…many who are eligible haven’t started the paperwork yet. Historically, the program has been cumbersome for borrowers to get their debts forgiven.But the Biden admin is trying to improve it, including a waiver for certain requirements that expires in October. Not in public service? See our other tips on how to reduce your student debt as we wait for Biden’s decision on broader forgiveness.
Crypto, Decoded
Wondering what a cashless society would look like? Curious about how cryptocurrency could help close the racial wealth gap? Find answers to these questions and more when the latest edition of our monthly Skimm Money Future-Proofed newsletter hits your inbox this Sunday. Prepare to learn more about the future of money, from the basics and lingo to the wild news and hot coins.
PS: Here’s last month’s issue, ICYMI.
Save Your Seat: SkimmU Home Buying
A roof over your head isn’t the only reason to invest in real estate. But with a crowded market and ruthless competition, it can be a liiittle daunting. Join us on Wednesday, June 22 at 7:30pm ET for our virtual panel, SkimmU Special Edition: Home Buying. Presented by Zillow. Real estate experts Amanda Pendleton, Mika Kleinschmidt, and Ciara Foster will tell us about the future of real estate, money mistakes to avoid (hi, hidden costs), and more. Register here.
Hot Off the Web
A pest control company will pay you $2,000 to host new roommates…but you may need to tread lightly.
Fees don’t help you. So Apple Card doesn’t have any.† Time to shop different.*
More workers will be able to celebrate Juneteenth with a day off this year. Though many won’t get paid for it.
Google will pay $118 million to settle a gender discrimination lawsuit that accused the company of systemically underpaying female workers.
Been practicing your red light-green light skills? Netflix is casting for a Squid Game reality competition with a record $4.56 million cash prize.
Sri Lanka’s giving some workers four-day work weeks, but not to combat burnout or boost happiness.
*PS: This is a sponsored post.
†Terms apply.
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