Welcome to the Divergent Economy
Cue dystopian vibes (minus the YA love triangle): The economy seems to be splitting in two.
Economists call this a “K-shaped economy.” One group is moving up financially. Another is moving down. And increasingly, people who live on the same block, work at the same company, or even belong to the same family can end up on opposite sides.
If that weren’t depressing enough, some economists say the gap resembles a crocodile’s jaws — widening, with plenty of bite.
That dynamic fuels the sense that there are two Americas. President Donald Trump has said the country is “stronger and richer” than ever, but many Americans look around and feel… confused.
The Great Wealth Transfer may explain part of that disconnect. Over the next two decades, trillions of dollars will move from Baby Boomers to Gen X, millennials, and Gen Z — through inheritance or as quieter help along the way, like down payments or childcare.
So if this resonates:
Know you’re not imagining things. Economic divergence is real, and the data backs it up. That means you may need to shift economic goals. Your definitions of success could look very different than your parents had been, and that’s OK.
Talk to someone about your money. Some employer benefits now include access to financial advisors who can help you create a plan and prioritize goals. These conversations can be especially helpful before a major financial move, like tapping your 401(k).
Focus on what you can control. One bright spot: More Americans across income levels are investing, a small but meaningful way to build long-term wealth.
— Anna “I Don’t Even Wanna Know What a ‘Jenga Tower Economy’ Is” Davies, writer
Read more:
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Tax refund season is underway, but four states are seeing delays.
One quick money move could save you hundreds a year.
The dollar doesn’t go as far as it used to. Fortunately, it still stretches in these 16 travel spots.
These six small habits can help you save money effortlessly — no spreadsheets required.
A brilliant strategy that can make you happier and save you money.
Supermarket Sweep
“Groceries are expensive” is the new “the news is crazy.” Obvious… especially if you live in these states, where grocery prices run higher than the rest of the country. But while you can’t do much about the headlines, you can try these moves to lower your food bill:
Add one or two ready-made staples to avoid the temptation for takeout.
Follow fan accounts on social media for insider tips, deals, and easy recipes. Some to consider: @costco_doesitagain, @traderjoes5itemsorless, and @aldiallthetime.
Try growing a few foods at home. You can even plant seeds from produce — just avoid these common (and sometimes dangerous) mistakes.
What is a “safe haven”?
TOGETHER WITH NORTHWESTERN MUTUAL
March is about celebrating women’s progress and power. And one of the most empowering things you can do? Have a plan to reach your money goals. Whether it’s a career leap, home ownership, early retirement, or starting something of your own, Northwestern Mutual can help you create a comprehensive financial plan that turns those hopes into action. And strategies to grow and protect your money along the way are very much included.†
A Northwestern Mutual financial advisor can help you uncover blind spots, spot opportunities, and build a personalized plan that’s designed to evolve with you — through every milestone and pivot. It might not feel like the “perfect” time to start, but the right time? That’s now.
†No investment strategy can assure a profit and does not protect against loss in declining markets.
Um, Is My Money OK?
The US and Israel's joint attack on Iran is rapidly evolving — and shifting global markets with it. No one has a crystal ball, but here’s what experts and economists do know:
Short term: Expect gas prices to go up. Nearly one-fifth of the world’s oil supply passes through the Strait of Hormuz, a narrow waterway between Oman and Iran … which is currently blocked.
Medium term: Expect volatility in your 401(k). Geopolitical uncertainty often rattles markets before they settle into a new normal.
Long term: Keep monitoring the situation, talk with your financial advisor about any changes you’re considering, and resist the urge to move all your money under your mattress.
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Have a money question you want us to answer? Email us at money@theskimm.com.
Written by Anna Davies; edited by Jordan Galloway; fact-checked by Jordan Mamone and Sara Tardiff.
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